US stocks re­bound amid up­beat data

The Gulf Today - Business - - FRONT PAGE -

NEW YORK: Wall Street opened in pos­i­tive ter­ri­tory Wed­nes­day de­spite in­ter­est rate jit­ters and con­tin­ued geopo­lit­i­cal un­ease, on up­beat data about US in­dus­try.

The pos­i­tive open fol­lowed Tues­day’s tum­ble sparked by ris­ing bond yields and fears trade dis­putes could deepen be­tween Wash­ing­ton, Brus­sels, Bei­jing Ot­tawa and Mexico City.

North Korea has also said it could back out of a June sum­mit with US Pres­i­dent Don­ald Trump.

About 30 min­utes into the trad­ing day, the bench­mark Dow Jones In­dus­trial Average was up a lit­tle more than a tenth of a per­cent­age point at 24,739.37

The broader S&P 500 gained more than 0.2 per­cent to 2,718.03, while the tech- and phar­ma­ceu­ti­cal-heavy Nas­daq rose close to 0.4 per­cent to 7,379.24 re­spec­tively.

“Un­der­stand­ably, those head­lines, along with ris­ing rates, helped rein in some of the bullish en­thu­si­asm seen of late,” said Pa­trick O’hare of Brief­ing.com

“Still, one was left to wonder if Tues­day’s pull­back would have hap­pened any­way if those fac­tors weren’t part of the equa­tion.”

New data showed in­dus­trial pro­duc­tion jumped 0.7 per­cent in April, and while it in part was spurred by cold weather that drove util­ity out­put higher, man­u­fac­tur­ing and min­ing also put in a solid per­for­mance.

COLD WEATHER

How­ever, the cold weather that helped in­dus­try also put a damper on home­build­ing, par­tic­u­larly of apart­ments, which slowed in April, fall­ing 3.7 per­cent.

In in­di­vid­ual stocks, depart­ment store chain Macy’s rose soared 8.8 per­cent af­ter beating ex­pec­ta­tions for same-store sales.

In­dus­trial con­glom­er­ate 3M fell more than one per­cent af­ter Jefferies down­graded the com­pany to “hold” and cut price tar­get on fears the com­pany is vul­ner­a­ble to in­fla­tion.

Swiss drug maker No­var­tis gained 0.7 per­cent af­ter an­nounc­ing that Gen­eral Coun­sel Felix Erhat would re­tire fol­low­ing rev­e­la­tions the com­pany paid Pres­i­dent Don­ald Trump’s personal at­tor­ney.

Cof­fee chain Star­bucks rose 0.9 per­cent on plans for faster store growth in China.

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