Energy companies and retailers led USA stocks broadly higher in morning trading Thursday, as the market rebounded from modest losses the day before. An industry report released on Thursday projected a more even balance in the supply and demand for oil this year.
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Investors were focused on the latest company earnings and new government data showing that retail sales turned sluggish in July and producer prices declined.
The Dow Jones Industrial Average lost 37 points, or 0.20 percent, to close at 18,576.
The Toronto Stock Exchange’s S&P/TSX composite index fell 48.61 points, or 0.33 per cent, to 14,747.45. In June, core PPI rose 0.4 percent.
Seven of the 10 major S&P 500 indexes were lower, with the materials sector falling the most by 1.06 percent.
Economic data showed US retail sales growth was unexpectedly flat in July as people cut back on buying clothes and other goods, while the producer price index fell 0.4 percent in July, the biggest drop in almost a year. It gained $1.78, or 4.3 percent, to close at $43.49 a barrel in NY.
The S&P 500 is up 140.11 points, or 6.9 percent. Brent crude, used to price global oils, gained 1.99, or 4.3%, to close at 46.04 in London. J.C. Penney rose 85 cents, or 9.3 percent, to $10.
“It’s gotten to a level which I would call overvalued. and maybe I can’t call it a bubble yet but we’re pretty close in my view”, said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York, adding, “It’s not as speculative as 1999”.
Macy’s shares jumped 18%, marking the best day for the department store operator in almost eight years after it reported a smaller-than-expected drop in quarterly comparable-store sales and said it would close 100 stores. The Dow Average and Nasdaq added more than 0.4 per cent.
Brent crude futures settled 93 cents higher at $46.97 at barrel after touching $47.05, the highest in more than three weeks.
At these levels, the three indexes are on track to be little changed for the week, while still being about 0.2 percent shy of all-time highs.
Shares of Macy’s soared, up 18.5 per cent as of 2.50pm in NY, after the company said it plans to close about 100 so-called full-line stores, out of a total of 728 Macy’s stores, including 675 full-line locations.
West Texas Intermediate for September delivery climbed 4.3 per cent to settle at US$43.49 (RM173.30) a barrel in NY. Chesapeake Energy rose 21 cents, or 4.3 percent, to $5.01.
– Ruby Tuesday’s slid 13.1 percent after the restaurant chain reported weak sales and said it would shutter 95 of its company-owned locations by September. Economists had expected the index to inch up by 0.1 percent. General Growth Properties fell 89 cents, or 2.9 percent, to $29.83, while Simon Property Group shed $4.01, or 1.8 percent, at $214.97.
The major stock indexes in Europe mostly closed lower.
Both contracts notched weekly gains of about 6 per cent, the biggest since late April. Natural gas gained 3 cents to $2.58 per 1,000 cubic feet. At the close of equities, the iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT) had surged 0.84 percent to $140.08.
Bond prices fell. The yield on the 10-year Treasury note rose to 1.56% from 1.50 late on Wednesday.
The U.S. dollar fell 0.2 per cent against a basket of currencies.
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In currency markets, the dollar weakened to 101.27 yen from 101.93 on Thursday.
