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US-STOCKS-MARKETS
US stocks end higher; Macy’s leads retailers down
NEW YORK, Jan 11, 2019 (BSS/AFP) – Wall Street stocks rose for a fifth
straight session on Thursday, overcoming disappointing holiday sales from
Macy’s and other retailers following a day of choppy trade.
The Dow Jones Industrial Average finished up 0.5 percent at 24,000.76.
The broad-based S&P 500 also gained 0.5 percent to 2,596.59, while the
tech-rich Nasdaq Composite Index advanced 0.4 percent to 6,986.07.
Stocks were pressured early after Macy’s cut its profit forecast following
a disappointing holiday shopping season. Macy’s sank 17.7 percent and other
retailers also fell.
After recovering, Wall Street again tumbled into negative territory after
Federal Reserve Chairman Jerome Powell told an afternoon Washington event
that the Fed’s large securities holdings should be “substantially smaller”
than the current level of just under $4 trillion.
But stocks again recovered after that, extending a rally spurred by dovish
comments by Powell last Friday and prolonged by US-China talks that were seen
as boosting the odds of a trade agreement.
Among retailers, Target fell 2.9 percent after it reported a 5.7 percent
jump in comparable holiday sales but did not boost its profit forecasts.
Other retailers that fell included Best Buy, down 1.6 percent, Gap, down
3.1 percent and Williams-Sonoma, down 2.4 percent. Walmart gained 0.1
percent.
American Airlines shed 4.1 percent as it cut its profit forecast range and
some other key financial projections following the key holiday travel season.
Ford fell 0.5 percent after announcing a major restructuring in Europe
that will include job cuts and the phasing out of some car models that are
not selling well.
BSS/AFP/HR/0950