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Wall Street gains on Macy's boost, Russell 2000 hits record

Reuters 

By Medha Singh

(Reuters) - Wall Street rose on Wednesday, with the small cap hitting a record, as strong results lit up the and led gains in the shares surged 10.5 percent, hitting a 52-week high, after the reported strong results and raised its profit forecast.

The report help boost the consumer discretionary sector, which rose 0.92 percent, while the consumer staples gained 0.72 percent.

and Nike, both components of the Dow Jones Industrial Average, and were up between 1.4 and 3.2 percent.

"You had pretty solid numbers from and it has been an early trigger for outperformance in the retail space today," said Michael James, at in

Macy's results come a day after strong April showed consumer spending was picking up, stoking inflation worries and sending bond yields higher.

Yields on the U.S. 10-year Treasury notes were holding at seven-year highs on Wednesday, raising concerns of faster interest rate hikes this year.

"Higher rates are going to present headwind to equity markets. Even with strong economic data, strong earnings, the markets are still flat year to date," said James.

"The question remains what multiples are people willing to pay for equities in this higher rate environment."

At 13:01 a.m. EDT the was up 74.22 points, or 0.30 percent, at 24,780.63, the 500 was up 14.08 points, or 0.52 percent, at 2,725.53 and the was up 55.29 points, or 0.75 percent, at 7,406.92.

Nine of the 11 sectors were higher, with only the and in the red.

The technology was up 0.5 percent, with chipmakers the biggest gainers.

jumped 4.4 percent after rated the stock "outperform," while gained 3.2 percent on a Susquehanna upgrade to "neutral".

The two stocks helped the SE index gain 1.24 percent.

Among the laggards was 3M Co, which slipped 1 percent and weighed on the Dow after Jefferies cut its rating on the stock to "hold".

dropped 4.4 percent, the most on the S&P, after the found some inaccuracies on sales data regarding some

Advancing issues outnumbered decliners by a 2.06-to-1 ratio on the NYSE and by a 2.53-to-1 ratio on the Nasdaq.

The index recorded 13 new 52-week highs and three new lows, while the Nasdaq recorded 108 new highs and 39 new lows.

(Reporting by in Bengaluru; Editing by Anil D'Silva)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 16 2018. 22:50 IST
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