New York Report: Stocks end up as rate hike fears subside
US STOCKS closed yesterday mostly higher, with the S&P 500 just missing a record close, after minutes from the Federal Reserve’s July meeting gave investors reason to believe that the central bank was in no rush to raise interest rates.
The minutes were from the two-day meeting of the Federal Open Market Committee in late July, when it trimmed its monthly bond-buying programme by an additional $10bn.
The Dow Jones industrial average rose 59.54 points, or 0.35 per cent, to end at 16,979.13. The S&P 500 gained 4.91 points, or 0.25 per cent, to finish at 1,986.51. The Nasdaq Composite dipped 1.03 points, or 0.02 per cent, to close at 4,526.48.
Home Depot was the Dow’s biggest percentage gainer as the world’s largest home improvement retailer rose 2.9 per cent to a record closing high of $90.75.
Lowe’s Cos, a Home Depot rival, rebounded. The stock gained 1.6 per cent to close at $52.33 after setting an intraday record high of $52.65.
Shares of Target rose 1.8 per cent to $60.33, shaking off initial declines after the US discount retailer’s second-quarter earnings fell shy of analysts’ estimates. The company cut its full-year outlook.
American Eagle Outfitters was a bright spot in the retail sector after the teen-oriented chain’s second-quarter results beat expectations and forecasts for third-quarter earnings were in line with the current estimate.
Its stock jumped 12 per cent to $12.98.