Energy companies and retailers led USA stocks broadly higher in morning trading Thursday, as the market rebounded from modest losses the day before.
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For the first time since December 31, 1999 – the day before the dotcom bubble burst – three major stock markets all closed at record highs on the same day.
Also among the day’s bright spots, Nordstrom rose 8 per cent to US$51.38 after the department store chain operator reported better-than-expected comparable sales and quarterly profit.
Oil extended gains Friday, rising 1.5% to $44.14 a barrel one day after Saudi Arabia’s energy minister said the country would work with other oil producers to stabilize prices.
West Texas Intermediate for September delivery climbed 4.3 percent to settle at $43.49 a barrel in NY. The S&P 500 index lost 1.74 points, or 0.1 percent, to 2,184.05.
At 12:28 p.m. ET (1628 GMT), the Dow Jones Industrial Average was down 47.19 points, or 0.25 percent, at 18,566.33. The Nasdaq composite index rose 1 point to 5,229.
Global stocks mostly fell Wednesday, Aug. 10, 2016, amid quiet summer trading and questions about the sustainability of some indexes’ rise to record highs.
ECONOMIC DATA: 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.
Kohl’s shares rose 15 percent after its quarterly profit beat estimates. It gained $1.78, or 4.3 percent, to close at $43.49 a barrel in NY.
Treasury yields were as follows on Friday afternoon: The yield on the 2-Year Note was 0.71 percent. The Nasdaq composite reached a new high, up 5 points, or 0.1 percent to 5,232.
Investors mostly focused on the latest batch of company earnings from retailers and other companies, as well as new data indicating that US retail sales in July were more sluggish than expected.
Jerusalim pointed to new U.S. Labor Department data showing that applications for new unemployment benefits fell by 1,000 last week to a seasonally adjusted 266,000, a sign that layoffs are low and employers are probably adding new jobs. Moreover, as a part of store rationalization program, the company plans to shut down almost 100 Macy’s full-line stores to focus on better performing locations.
The price of crude oil climbed 0.7 percent to $41.98 a barrel in NY.
The S&P 500, an index of 500 blue chip U.S. companies, climbed 0.5 per cent to close at 2185 for the first time on Thursday. General Growth Properties fell 61 cents, or 2 percent, to $30.11, while Simon Property Group shed $2.39, or 1.1 percent, at $216.59. Core prices had been expected to edge up by 0.2 percent. Stocks in Japan, Hong Kong and mainland China all finished solidly in the black.
Shares of Bank of America (BAC.N), JPMorgan (JPM.N), Citigroup (C.N) fell between 0.8-1.0 per cent and were among the top five stocks that dragged down the S&P. The energy sector advanced 1.3% on the news, including a 4.8% jump in Chesapeake Energy Corporation (NYSE:CHK), which announced it would pay almost $340 million to exit the Barnett Shale in Texas.
USA stocks edged lower, government bonds strengthened and the dollar weakened Friday after disappointing retail-sales data. Britain’s FTSE 100 rose 0.7 percent. The euro weakened to 1.1141 dollars from 1.1175.
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All three key USA indexes closed at record highs on Thursday.
