Retailers, energy lead stocks a bit higher
U.S. stock NEW YORK — indexes finished with tiny gains Wednesday as retailers jumped after a strong hiring forecast from Target and energy companies rose along with oil prices.
Companies that sell everything from clothing to electronics rose after Target said it will hire 100,000 workers for the holiday season, about 30,000 more than it did a year ago. Energy companies rose after the U.S. government said oil and gasoline stockpiles shrank last week.
Those gains were almost canceled out as technology and health care companies, which have led the market higher this year, slipped.
With stocks at record highs, investors hunted for bargains. Retailers and energy and telecommunications companies have all struggled this year and finished higher Wednesday.
One reason stocks may have held steady: The Federal Reserve will meet next week, and along with the usual questions about interest rates and the Fed’s balance sheet, investors are wondering about the central bank’s leadership. Fed Chair Janet Yellen’s four-year term will end in February and it’s not clear whether President Donald Trump will reappoint her or replace her.
“There are factions of the Fed, as well as potential Fed chair candidates, that are less focused on market reactions and will be more focused on the need to raise rates from their current levels to offset a future recession,” said Eric Freedman, chief investment officer for U.S. Bank Wealth Management.
Freedman said Yellen has made a priority of informing Wall Street about the Fed’s plans and taking investor reactions into account. A different Fed chair might not do that, which could lead to a bumpier ride for stocks.
The Standard & Poor’s 500 index added 1.89 points, or 0.1 percent, to 2,498.37. The Dow Jones industrial average picked up 39.32 points, or 0.2 percent, to 22,158.18. The Nasdaq composite rose 5.91 points, or 0.1 percent, to 6,460.19. The Russell 2000 index of smaller-company stocks gained 3.43 points, or 0.2 percent, to 1,426.89.
Hard drive maker Western Digital slumped $3.04, or 3.4 percent, to $85.74 after its partner Toshiba said it will sell its computer memory business to a consortium led by Bain Capital Private Equity. Western Digital wants to buy that business and has filed a lawsuit to stop Toshiba from selling it to anyone else.
Toshiba is trying to offset losses by its Westinghouse Electric nuclear business, which filed for bankruptcy protection in March.
Energy companies rose as benchmark U.S. crude rose $1.07, or 2.2 percent, to $49.30 a barrel in New York. Brent crude, used to price international oils, added 89 cents, or 1.6 percent, to $55.16 a barrel in London.
Credit bureau Equifax hit an 18-month low in heavy trading. The company disclosed last Thursday that personal data of about 143 million Americans was compromised in a cyberattack. Equifax has been sharply criticized by Congress, state governments and consumers. The stock dropped another $16.97, or 14.6 percent, to $98.99. It traded above $142 last week before news of the attack.
Medicaid program administrator Centene said it will expand into New York through a $3.75 billion acquisition of Fidelis Care. Its stock jumped $7.28, or 8 percent, to $98.16.
Apple slipped again. Investors appeared worried about the $999 price tag of the tenth-anniversary iPhone X as well as its later launch date in early November. That could affect Apple’s revenue in the next few quarters. The stock lost $1.21 to $159.65.
Bond prices edged higher. The yield on the 10-year Treasury note rose to 2.19 percent from 2.17 percent.