Tech firms, re­tail­ers help drive re­bound

Richmond Times-Dispatch - - MONEY & MARKETS -

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

Nord­strom.

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