Dow Jones:11,269.63 (+126.32) Nasdaq:2,507.98 (+15.30) S&P 500:1,178.81 (+6.17)
US STOCKS rose yesterday, extending the biggest two-day advance for benchmark indexes since March 2009, as the largest increase in American retail sales in four months tempered concern economic growth is slowing.
A gauge of retailers in the Standard and Poor’s 500 climbed 1.5 per cent, as 26 of its 30 stocks advanced, after the Commerce Department reported a 0.5 per cent increase in retail sales.
“The retail sales report was good,” said Barry Knapp, the New York-based head of US equity strategy at Barclays.
“The first step is a stabilization of the macro outlook in the US. Once you remove the uncertainties, it allows for capital market stabilization. Stocks are exceptionally cheap and this is a buying opportunity,” he said.
About $2.3 trillion was erased from US equity values in the last three weeks as Europe’s debt crisis, signs the economy is slowing and S&P’s downgrade of the government’s AAA credit rating left the benchmark gauge for US shares within 11 points of a bear market.
The swings in US equities this week are unprecedented in the history of the American stock market, according to data compiled by Birinyi Associates, Bloomberg and Howard Silverblatt, senior index analyst at SP.
Caterpillar rose 2.9 per cent to $89.81. 3M increased 1.6 per cent to $82.54.
Hewlett-Packard rose 4.1 per cent to $32.32. The biggest personal-computer maker was raised to “buy” from “hold” at Jefferies.
Goodyear Tire and Rubber rose 7.3 per cent to $13.49. The largest US tyre maker won $1.50 million in federal funding to develop fuel efficient tyres, Senator Sherrod Brown said in a statement.
Nordstrom rose 4.4 per cent to $44.18. The US department store chain posted second-quarter earnings that beat the average analyst estimate, says Bloomberg.
Financial stocks had the biggest decline in the S&P 500 within 10 industries, falling 1.2 per cent after gaining 2.9 per cent earlier.
Morgan Stanley retreated 7.3 per cent to $16.89 after climbing 3.7 per cent earlier.
JPMorgan Chase decreased 2.1 per cent to $35.91.
Bank of America sank 0.8 per cent to $7.19, losing 12 per cent for the week. – (Bloomberg)
