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Stocks up on news Summers out for Fed job

Traders work on the floor of the New

Traders work on the floor of the New York Stock Exchange last week. (Sept. 11, 2013) Credit: Getty Images

Wall Street was happy to see Larry Summers go.

Stocks rose Monday after Summers, who had been the leading candidate to replace Federal Reserve Chairman Ben Bernanke, withdrew his name from consideration.

Summers, a former Treasury secretary, was viewed as being more likely to rein in the government's massive stimulus program, which has kept interest rates low and boosted corporate profits.

Stocks were also helped by news that U.S. factory output rose 0.7 percent in August, the most in eight months.

The Dow Jones industrial average rose 118.72 points to close at 15,494.78. The Standard & Poor's 500 index rose 0.57 percent to 1,697.60. The Nasdaq composite fell 4.33 points, a fraction of a percent, to 3,717.85, pulled down by a decline in Apple shares.

The Fed has been buying $85 billion per month in bonds, which has had the effect of keeping interest rates low and reducing borrowing expenses for companies.

The Fed is expected to take its first step toward reducing that stimulus in a two-day policy meeting that ends tomorrow.

-- AP

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