NEW YORK – Wall Street stocks advanced on Wednesday, extending the prior session’s rally on benign economic data expected to keep the Federal Reserve from hiking interest rates further.
Data on Wednesday showed retail sales fell 0.1 per cent in October from the prior month, while wholesale prices declined by 0.5 per cent last month from September.
The reports both “support the narrative about stable economic growth and disinflation,” said Mr Angelo Kourkafas, investment strategist with Edward Jones.
“We have a type of ‘goldilocks’ environment,” he said. “The market embraces that.”
The Dow Jones Industrial Average finished up 0.5 per cent at 34,991.21.
The broad-based S&P 500 advanced 0.2 per cent to 4,502.88, while the tech-rich Nasdaq Composite Index added 0.1 per cent at 14,103.84.
Wednesday’s data come on the heels of Tuesday’s consumer price report showing an ebbing in household prices, which added to confidence that the Fed will not raise interest rates further to counter inflation.
Among individual companies, Target jumped 16.5 per cent despite reporting a drop in third-quarter comparable sales.
However, the big-box retailer reported higher profits than expected and pointed to growth in some categories such as beauty products.
TJX, parent to TJ Maxx and other chains, fell 3.3 per cent on disappointment over its forecast. The company expressed confidence it is “strongly positioned as a shopping destination for gifts this holiday selling season.”
Nike jumped 2 per cent as it announced a 9 per cent rise in its shareholder dividend. AFP
