US stocks rise on re­tail sales data

The Gulf Today - Business - - FRONT PAGE -

NEW YORK: Wall Street stocks rose early on Thurs­day fol­low­ing bet­ter-than-ex­pected US re­tail sales data and a Euro­pean Cen­tral Bank de­ci­sion that lifted Euro­pean mar­kets.

The ECB move comes on the heels the Fed­eral Re­serve de­ci­sion Wed­nes­day to raise the key in­ter­est rates, and ac­cel­er­ate rate hikes into 2019, that weighed on US stocks.

About 15 min­utes into trad­ing, the Dow Jones In­dus­trial Av­er­age was up 0.3 per cent at 25,282.11.

The broad-based S&P 500 climbed 0.3 per cent to 2,784.71, while the tech-rich Nasdaq Com­pos­ite In­dex ad­vanced 0.6 per cent to 7,741.42.

US re­tail and food ser­vices sales jumped 0.8 per cent in May, the strong­est since Novem­ber and dou­ble the rate econ­o­mists were ex­pect­ing.

The ECB, mean­while, an­nounced plans to ta­per bond­buy­ing stim­u­lus af­ter Septem­ber and end the pro­gramme com­pletely in De­cem­ber. The cen­tral bank in­tends to keep bench­mark in­ter­est rates at cur­rent lev­els through the sum­mer of 2019.

Bourses in Paris and Frankfurt both rose about one per cent.

Com­cast jumped 4.3 per cent af­ter bid­ding $65 bil­lion for key film and tele­vi­sion as­sets of Ru­pert Mur­doch’s 21st Cen­tury Fox, top­ping an ear­lier of­fer from Dis­ney. Dis­ney climbed 2.0 per cent and Fox won 1.3 per cent.

US re­tail sales in­creased more than ex­pected in May as con­sumers bought mo­tor ve­hi­cles and a range of other goods even as they paid more for gaso­line, the lat­est in­di­ca­tion of an ac­cel­er­a­tion in eco­nomic growth in the sec­ond quar­ter.

Other data on Thurs­day showed a fur­ther tight­en­ing in labour mar­ket con­di­tions, with first-time ap­pli­ca­tions for un­em­ploy­ment ben­e­fits un­ex­pect­edly fall­ing last week and the num­ber of Amer­i­cans on job­less rolls de­clin­ing to a near 44-1/2-year low.

The re­ports came a day af­ter the Fed­eral Re­serve raised in­ter­est rates for a sec­ond time this year and of­fered an up­beat as­sess­ment of the econ­omy.

As­so­ci­ated Press

A trader watches screens on the floor of the New York Stock Ex­change.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.