Stocks on rise in seesaw streak
NEW YORK — U.S. stocks finished mostly higher Tuesday as weeks of up-and-down trading, much of it related to trade tensions, gave way to smaller moves. Technology companies, retailers and U.S.-focused companies kept rising while banks fell with interest rates.
The market spent the day alternating between small gains and losses. Technology companies like Apple and eBay rose for a third-straight day and the Nasdaq composite again set an all-time high.
The S&P 500 added 1.93 points, or 0.1 percent, to 2,748.80. The Dow Jones industrial average slipped 13.71 points, or 0.1 percent, to 24,799.98. The Nasdaq composite rose 31.40 points, or 0.4 percent, to 7,637.86 and the Russell 2000 climbed 11.25 points, or 0.7 percent, to 1,664.63.
The Nasdaq, which includes a heavy weighting of technology companies, and the Russell, an index made up of smaller and more U.S.focused companies, are at record highs. The S&P 500 is still 4 percent below the record it set on Jan. 26, and the Dow will have to rally 7 percent to reach the mark it set the same day.
The Labor Department said job openings increased in April, which could help lead to higher pay and greater consumer spending. Retailers climbed, and smaller ones fared especially well after some strong first-quarter results. Larger companies like Amazon and Macy’s also rose.
“When people have extra income they’re going to spend it on discretionary goods,” said Jason Draho, the head of asset allocation for UBS. “The jobs data would suggest a lot of job openings [and] that’s going to lead to higher wage growth.”
However, bank stocks fell along with interest rates and health care companies also traded lower. Starbucks fell after it said longtime Chairman Howard Schultz is leaving the company.
The Labor Department said that for the first time since records began in December 2000, there are more job openings than unemployed Americans. That could give workers more leverage for pay raises, while high levels of employment and greater consumer spending are expected to lead to faster economic growth in the coming months.
Retailers helped lead the way Tuesday as more of them reported quarterly results. GIII Apparel Group climbed 10.8 percent to $47.53 after it raised its annual profit and sales forecast following a strong first quarter. Ascena Retail shook off early losses and rose 7.9 percent to $3.95.
Amazon again finished at a record high after it jumped 1.9 percent to $1,696.35 while Target gained 2.8 percent to $78.50 and Macy’s jumped 8 percent to $40.05.
Schultz has been chairman of Starbucks since 2000 and oversaw enormous expansion for the company over that time. He stepped away as CEO in 2000 but returned in 2008, and relinquished that title to Kevin Johnson in 2017. The stock lost 2.4 percent to $55.68.
S&P Dow Jones Indices said late Monday that Twitter will be added to the benchmark S&P 500 index as of Thursday after Monsanto officially becomes part of Bayer. Twitter rose 5.1 percent to $39.80. Netflix, which will become part of the S&P 100 index, rose 1.1 percent to $365.80.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.92 percent from 2.94 percent.
Financial companies fell in tandem with bond yields. Lower yields force interest rates down on mortgages and other kinds of loans, which means lower profits for banks. Morgan Stanley lost 1.5 percent to $50.78, and Capital One gave up 1.1 percent to $94.35.