Stocks edge higher after 2 days of big losses
NEW YORK — Stocks in the U.S. finished mostly higher Wednesday, a break after two days of steep losses. Technology and internet companies and retailers were responsible for most of the gains.
The gains came from highgrowth stocks such as retail and industrial companies, and energy companies benefited as crude oil rose about 2 percent. Smaller and more domestically focused companies surged. Those sectors have slumped over the last two months. Despite the gains Wednesday, the S&P 500 is down 3.2 percent so far this week.
Alec Young, managing director of global markets research at FTSE Russell, said the market has tumbled this autumn because growth in the global economy and in company profits is slowing down, and investors are worried that the situation will get worse.
Mr. Young said Wall Street essentially has a two-item wish list for the holidays: a general trade agreement between the U.S. and China, and a sign the Fed will raise interest rates at a more gradual clip. Presidents Donald Trump and Xi Jinping are scheduled to discuss the trade situation at a Group of 20 summit at the end of this month. If those things transpire, he said, the stock market will settle down.
“All they have to do is agree on a high-level framework that can delay the increase in the tariffs,” Mr. Young said. “If the Fed is more dovish and we get some positive news on China, we can have a solid end to the year.”
The S&P 500 index rose as much as 1.1 percent in early trading but finished with a gain of just 8.04 points, or 0.3 percent, at 2,649.93.
The Dow Jones Industrial Average slipped 0.95 points to 24,464.69. The Nasdaq composite climbed 63.43 points, or 0.9 percent, to 6,972.25. The Russell 2000 index of smaller-company stocks rose 19.27 points, or 1.3 percent, to 1,488.28.
Trading was relatively quiet ahead of the Thanksgiving holiday. U.S. markets will be closed Thursday, and will be open for a half-day on Friday.
European stock indexes also recovered. Germany’s DAX jumped 1.6 percent. Britain’s FTSE 100 rose 1.5 percent and the CAC 40 in France added 1 percent.
Strong reports from companies including Foot Locker helped retailers. The shoe and athletic apparel company climbed 14.9 percent to $52.96 after its third-quarter profit and revenue surpassed Wall Street’s expectations. The company said sales broke out of a slump and prices also rose. Gap rose 4.7 percent to $25.81 after reporting solid quarterly results and saying it will close more struggling Gap locations.
That contributed to a rebound for retailers after they dropped on Tuesday. Home improvement company Lowe’s gained 2.5 percent to $88.37 and Nike rose 1.8 percent to $72.37.
Technology companies recovered a sliver of their recent losses. Adobe rose 2.8 percent to $225.98 and design software maker Autodesk climbed 9.7 percent to $135.04 after a strong quarterly report. The company also said it is buying construction software company PlanGrid for $875 million.
Amazon rose 1.4 percent to $1,516.73 and Facebook jumped 1.8 percent to $134.75.
Microsoft picked up 1.4 percent to $103.11, but Apple lost 0.1 percent to $176.89.