US stocks jump ahead of Fed meeting

US stocks surged Monday a day before the Federal Reserve begins meeting to review monetary policy, with expectations mounting that it will make no sharp changes to its economic stimulus. The Dow Jones Industrial Average finished up 109.67 points (0.73 percent) at 15,179.85. The broad-based S&P 500 advanced 12.31 (0.76 percent) to 1,639.04, while the tech-rich Nasdaq Composite jumped 28.57 (0.83 percent) to 3,452.13. Stocks ended off their one percent-plus gains, with uncertainty over Fed policy and the lack of much hard news driving the market. But support came from the push to a seven-year high in the National Association of Home Builders's builder confidence index. The index hit 52, topping 50 for the first time since April 2006, with builders calling conditions good rather than poor. "Surpassing this important benchmark reflects the fact that builders are seeing better market conditions as demand for new homes increases," said Rick Judson, NAHB chairman. Pfizer shares topped the trade by value on the New York Stock Exchange, adding 0.2 percent after reaching a $2.15 billion settlement in a 10-year-old patent infringement suit against generic drug makers Teva Pharmaceutical Industries and Sun Pharmaceutical Industries . Shares of pork giant Smithfield Foods added 0.9 percent after a key shareholder, the investment firm Starboard Value, said the takeover bid by China's Shuanghui International deeply undervalued the company and called for it to be sold off in parts. Starboard said Smithfield's various units were worth between $9 billion and $10.8 billion, compared to Shuanghui's $7.1 billion valuation. Streaming video provider Netflix added 7.1 percent after announcing a deal for original content from DreamWorks Animation. Dreamworks gained 4.1 percent. Dow member Boeing rose 1.2 percent after announcing more than $6 billion in new aircraft orders at the Paris Air Show. Bond prices fell. The yield on the 10-year US Treasury pushed up to 2.17 percent, compared to 2.13 percent late Friday, while the 30-year moved to 3.35 percent from 3.30 percent. Bond prices move inversely to yields.