|
Nine of the 11 major S&P 500 sectors advanced, led by consumer
discretionary and information technology.
Retail sales increased 1.0% after a downwardly revised 0.2% drop
in June, easing fears of a sharp economic slowdown fanned by a
jump in the unemployment rate last week.
Retail bellwether Walmart rose 6.58% after raising its annual
profit forecast for the second time this year as Americans
flocked to its stores for inexpensive essentials.
Rivals Target and Costco also advanced 4.35% and 1.69%,
respectively.
A separate reading also showed the number of Americans filing
new applications for unemployment benefits fell unexpectedly
last week.
"The wall of worry is beginning to crumble as sentiment is
improving and the fundamentals support a risk-on bias," said
Terry Sandven, chief equity strategist at U.S. Bank Wealth
Management. "Retail sales were above expectations, Consumer
Price Index numbers came in at a tolerable level, so the
fundamental backdrop is consistent with rising equity prices."
The yield on two-year and 10-year Treasury notes rose after the
data, with traders increasing bets for a 25-basis-point rate cut
by the Federal Reserve to 76.5%, versus 65% before the data.
Investors have cautiously eyed this week's economic data
releases, the last set before Fed Chairman Jerome Powell
delivers a much-awaited speech at Jackson Hole next week.
The Dow Jones Industrial Average rose 554.67 points, or 1.39%,
to 40,563.06. The S&P 500 gained 88.01 points, or 1.61%, at
5,543.22. The Nasdaq Composite advanced 401.90 points, or 2.34%,
to 17,594.50.
Among other movers, Cisco Systems rose 6.8% after it forecast
better-than-expected first-quarter revenue and said it was
cutting 7% of its global workforce.
Nike climbed 5.07% as billionaire investor William Ackman built
new stakes in the sportswear company. Ulta Beauty jumped 11.17%
after Warren Buffett's Berkshire Hathaway acquired a stake in
the cosmetics store chain.
Advancing issues outnumbered decliners by a 3.22-to-1 ratio on
the NYSE. On the Nasdaq, advancing issues outnumbered decliners
by a 2.66-to-1 ratio.
The S&P 500 posted 30 new 52-week highs and one new low while
the Nasdaq Composite recorded 76 new highs and 104 new lows.
(Reporting by Abigail Summerville in New York; Editing by
Richard Chang)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
