* Fed sees three rate hikes in 2017
* Yahoo falls after disclosing largest security breach in
* Nov consumer price index up 0.2 pct vs 0.4 pct gain in
* Indexes up: Dow 0.18 pct, S&P 0.13 pct, Nasdaq 0.15 pct
(Updates to open)
By Tanya Agrawal
Dec 15 Wall Street was higher on Thursday,
helped by a rise in bank stocks, a day after the Federal Reserve
increased interest rates for the first time this year and
signaled a faster pace of hikes in 2017.
The Fed sees three rate hikes next year instead of the two
foreseen as of September, partly as a result of the changes
anticipated under President-elect Donald Trump.
Fed Chair Janet Yellen also cited an improving labor market
and evidence of faster inflation for its 2017 rate outlook.
The central bank's decision to raise rates comes as Trump,
who will be sworn in next month, is expected to cut taxes and
boost spending on infrastructure.
"While there still remains a cloud of uncertainty over how
economic policy may change under Trump's presidency, the same
rising optimism towards Trump boosting U.S. growth through tax
cuts and infrastructure spending may have played a key part in
the changes to the Fed's projections," said Lukman Otunuga, a
research analyst with FXTM.
Since the Nov. 8 U.S. presidential election, stocks have
rallied on bets that Trump's expected business friendly policies
will stimulate the economy.
At 9:44 a.m. ET (1444 GMT) the Dow Jones Industrial average
was up 35.94 points, or 0.18 percent, at 19,828.47.
The S&P 500 was up 3.07 points, or 0.13 percent, at
The Nasdaq Composite was up 8.16 points, or 0.15
percent, at 5,444.83.
Five of the 11 major S&P sectors were higher, with the
financial index's 0.92 percent rise leading the gainers.
Goldman Sachs, JPMorgan and Wells Fargo
were up between 1.2-2.1 percent, boosting the S&P and
U.S. stocks fell the most in two months on Wednesday after
the central bank's hawkish stance took some investors by
surprise and crude oil tumbled.
U.S. consumer prices moderated in November, but the
underlying trend continued to point to firming inflation
pressures. The Labor Department said its Consumer Price Index
rose 0.2 percent last month. The index had advanced 0.4 percent
Mondelez was up 3.1 percent at $44.16 after reports
that Kraft Heinz may buy the Cadbury chocolate maker.
Kraft rose marginally to $84.51.
Eli Lilly was up 3.9 percent at $70.35 after the
drugmaker forecast 2017 earnings and revenue above analysts'
Yahoo fell 2.8 percent to $39.76 after the largest
security breach in history. The company said data from more than
1 billion accounts was compromised in August 2013.
Declining issues outnumbered advancers on the NYSE by 1,748
to 947. On the Nasdaq, 1,213 issues fell and 1,112 advanced.
The S&P 500 index showed six new 52-week highs and no new
lows, while the Nasdaq recorded 26 new highs and 21 new lows.
(Reporting by Tanya Agrawal in Bengaluru; Editing by Anil