Stocks are closing broadly higher on Wall Street Thursday led by energy companies and retailers.
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US stocks moved slightly lower on Friday, following record closes on Thursday for the three major stock indexes.
That soured sentiment a day after better-than-anticipated earnings from individual retailers, such as department store players Macy’s (M), Kohl’s (KSS) and Nordstrom (JWN), powered a big rally in retail shares that spread to the broad market. Oil gained following a report by the International Energy Agency that said oversupply risk in the global oil market is waning.
Benchmark U.S. crude oil fell by 2.5% or $1.06 to a $41.71 barrel in NY.
The S&P 500 gained 0.5 per cent to 2,185.79 at 4pm in NY, extending this year’s advance to 6.9 per cent. The Nasdaq composite index gained 27 points, or 0.5 percent, to 5,231.
The retreat in stocks followed record high closes the previous day for all three major indexes on a recent rally that has many investors anxious about pricey valuations.
The Commerce Department said that US retail sales held steady in July from the previous month, as Americans spent less at grocery stores, clothing shops, sporting goods and electronics and appliance outlets.
North American stock indexes were solidly higher in Thursday afternoon trading as crude oil futures soared and signs of strength in the USA economy boosted investor sentiment.
Kohl’s shares rose 17 percent after its quarterly profit beat estimates. Brent crude, used to price worldwide oils, slid 93 cents, or 2.1 percent, to close at $44.05 per barrel in London.
The Dow Jones rose 117.8 points, or 0.6%, to 18,613.5.
The CBOE Volatility Index (VIX – 11.55) closed below 12 for the fourth time this week, losing 0.1 point, or 1.1%.
The Nasdaq bucked the trend, adding 4.49 points, or 0.1 percent, to 5,232.89. Rising oil prices and better than expected earnings reported by retailers supported the stock gains.
In economic news, the Labor Department reported that the number of Americans filing for first-time jobless claims fell 1,000 to 266,000, which “points to healthy labor market conditions across the US”, according to Barclays.
Consumer discretionary stocks were another strong sector after Macy’s announced plans to close 100 stores in the U.S. and boost investment in e-commerce. Brent crude, used to price worldwide oils, advanced 8 cents to $46.12 a barrel. Yahoo YHOO.O , which owns a stake in Alibaba, rose 2.4 percent. The stock rose $6.19, or 18.2 percent, to $40.19. Yields fall as prices rise.
Shake Shack dropped 7 percent to $38 after the company’s quarterly comparable-sales growth slowed more than expected. The large-cap average ended down 0.1% at 2,184.05. Japan’s Nikkei Stock Average rose 1.1% Friday and 4.1% for the week.
It topped its previous high of 2182 which it set just six days before. Britain’s FTSE 100 was up 0.3 percent. Natural gas fell a penny to $2.55 per 1,000 cubic feet.
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CURRENCIES: The dollar strengthened to 102.04 yen from 101.86 on Thursday.
