* Stocks up after selloff; Fed statement on tap
* Toll Brothers, homebuilders rising; Applied Materials up
* Indexes up more than 1 percent
* For up-to-the-minute market news click []
(Updates to open)
By Angela Moon
NEW YORK, Aug 12 (Reuters) - U.S. stocks rose on Wednesday
after a selloff in the previous session, with technology shares
gaining, as homebuilder stocks rallied after a positive
earnings report from Toll Brothers Inc.
Investors had been cautious earlier ahead of the conclusion
of a Federal Reserve meeting that could shed light on the state
of the economy.
The Fed's monetary policy committee, which wraps up its
two-day meeting Wednesday, is expected to leave the key target
interest rate unchanged. But investors will parse the Fed's
policy comments for any changes in its outlook or its program
to buy Treasury bonds.
Applied Materials Inc <AMAT.O> added to gains for the
tech-heavy Nasdaq index, rising 4.54 percent to $13.81 after
Morgan Stanley raised its price target. Applied Materials, the
world's largest producer of chip-making gear, reported its
quarterly results after the bell on Tuesday and said it would
at least break even this year thanks to new orders and deep
cost cuts.
Toll Brothers Inc <TOL.N> shares advanced by 10.6 percent
to $22.65, after the luxury-home builder said its net signed
contracts rose in the third quarter. But the firm said that it
was expecting to report a 42 percent drop in homebuilding
revenue next quarter, a further sign of a housing market still
suffering from recession.
An index of homebuilder shares gained 4.4 percent.
<.DJUSHB>
"We had a couple of earnings reports and economic data that
were positive for buyers to come back into market, but there is
really no reason for investors to be jumping in ahead of the
Fed commentary this afternoon," said Kurt Brunner, portfolio
manager at Swarthmore Group in Philadelphia, Pennsylvania.
Adding a positive tone to the market, the U.S. government
and Swiss bank UBS AG <UBSN.VX> <UBS.N> initialed agreements to
settle their tax evasion dispute, ending weeks of tough
negotiations between the two sides. The U.S.-listed shares of
the bank rose 2 percent to $15.00.
Retailer Macy's Inc <M.N> shares added 3 percent to $15.94,
after posting better-than-expected earnings and raising its
outlook.
The Dow Jones industrial average <> was up 127.19
points, or 1.38 percent, at 9,368.64. The Standard & Poor's 500
Index <.SPX> was up 12.69 points, or 1.28 percent, at 1,007.04.
The Nasdaq Composite Index <> was up 31.27 points, or 1.59
percent, at 2,001.00.
Before the bell, the Commerce Department said that the U.S.
trade deficit widened less than forecast in June on exports
gains, which were spurred by a pick-up in global demand. The
gap increased 4 percent to $27 billion from $26 billion in
May.
U.S. stocks fell Tuesday after a prominent banking analyst
questioned the sector's recent gains and industry fundamentals.
An unexpectedly large drop in wholesale inventories also raised
worries about a recovery, but the broader S&P 500 is still up
47 percent from its closing-low set on March 9.
(Editing by Padraic Cassidy)
