Tech firms, retailers help drive rebound
U.S. stocks notched solid gains Wednesday, recouping some of the market’s losses from a day earlier.
Technology and health care companies drove much of the rebound, outweighing losses in safe-play stocks like utilities and real estate investment trusts. Small-company stocks fared better than the rest of the market.
Macy’s led a rally among retailers after reporting surprisingly strong results, adding to the strong wave of corporate earnings in recent weeks.
“Earnings growth has shown through and that’s been primarily based on strong fundamental growth from U.S. companies,” said Jamie Lavin, global investment specialist at J.P. Morgan Private Bank. “And when equity markets are able to look through to that and we don’t have any major geopolitical headlines, we tend to have stronger days in the market.”
The stock indexes wavered little from their upward trajectory Wednesday as investors appeared to shake off concerns about the prior day’s spike in bond yields.
Technology and health care companies bounced back Wednesday after taking some of the worst losses a day earlier. Western Digital rose 4.9 percent to $87.02, while Cerner added 2.9 percent to $59.97.
Macy’s latest results far exceeded analysts’ expectations. The company’s shares led all stocks in the S&P 500, vaulting 10.8 percent to $33.17.
Office Depot climbed 5.1 percent to $2.46 after the office supply company maintained its forecasts for the year.
Several other retailers also moved higher. Nordstrom added 2.4 percent to $51.05, while L Brands gained 2.6 percent to $34.19. Target shares picked up 2.9 percent to $75.23.
Investors will get to pore over more results from retailers Thursday, including Walmart, J.C. Penney and