USA stocks closed broadly higher Thursday, nudging the three major US indexes to close at record highs.
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The large-cap index has set repeated record highs over the past four weeks as post-Brexit jitters faded and expectations for continued low-rate stimulus set in. The Nasdaq surpassed its 2015 record high close last Friday.
In addition to Macy’s and Kohl’s Corp.’s profit surprises, investors are awaiting a raft of other quarterly data from retailers.
“The equity markets in Canada and the USA are really being led higher by energy and consumer sectors”, said Craig Jerusalim, a portfolio manager for Canadian equities at CIBC.
At 2:35 pm ET, the Dow Jones industrial average was up 0.74 percent to 18,633.35 points and the S&P 500 had gained 0.55 percent to 2,187.39. Copper gained 2 cents, or 0.9 percent, to $2.19 a pound. Materials stocks also rose 0.4% thanks to solid gains at chemical and mining companies.
The Dow Jones Industrial Average rose 117.86 points (0.64 per cent) to 18,613.52. South Korea’s KOSPI edged up 0.2%.
The latest market milestones reflect investors’ improved confidence in the economy of late.
Stocks are rising Thursday morning, with consumer companies up the most after strong earnings from Macy’s and Kohl’s.
The gain in oil helped to support the Canadian dollar, which was trading at 77.15 cents United States, up three-fifths of a cent from Wednesday’s close.
“We’re continuing to grind higher”, said Stephen Carl, principal and head equity trader at Williams Capital Group LP in NY. The agency lowered its forecast for demand growth next year to 1.2 million barrels a day from 1.3 million barrels a day previously.
All three US stock benchmarks rose together to record highs for the first time in 16 years amid surprising earnings. Brent crude, used to price worldwide oils, was up 62 cents, or 1.4%, at $44.66 in London.
Crude oil prices were rallying on news that Saudi Arabia is considering a deal to stabilize oil prices in the months ahead. Oil and gas firms added 1.4%, while energy equipment companies rose 0.9%. Macy’s said it plans to close about 100 stores next year as it tries to become more nimble in a competitive market.
After topping its previous record in mid-July, the S&P 500 has inched higher in a range, not moving more than 1 percent in either direction for 24 straight days, the longest streak since 2014.
Investors also bought up shares in several other retail chains.
J.C. Penney, which reports on Friday, surged 8.63 per cent. Nordstrom (JWN) was up 7.5% with its own earnings report due after the close.
Equity futures pointed lower ahead of Friday’s opening bell after news that USA retail sales for July came in flat, against expectations for growth.
Not all companies had favorable quarterly results.
Hamburger chain Shake Shack slumped 6.2% after it said sales at older locations slowed down in the latest quarter. The stock shed $2.34 to $38.53.
MARKETS OVERSEAS: In Europe, Germany’s DAX gained 0.9 percent, while France’s CAC 40 added 1.2 percent. The Nasdaq composite rose 25 points or 0.5 percent to 5,230.
ASIA’S DAY: Earlier, Hong Kong’s Hang Seng index finished 0.4 percent up at 22,580.55.
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Healthcare added 0.6%, information technology stocks closed up 0.4% and telecommunications services rallied 0.3%. In early Friday trade, Brent futures for October delivery gained 0.15%, to $46.11 per barrel at 9:24 p.m. EDT while USA crude futures gained 0.32%, to $43.63 for delivery next month.
