By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market moved higher
Wednesday, with the Dow Jones Industrial Average rising more than
100 points in morning trade, as gains in the health-care and
technology sectors led the broad-based advance.
Even consumer plays were up despite softer-than-expected retail
sales data as well as disappointing quarterly results from
retailers such as Macy's Inc. and Fossil Group Inc.
The Dow Jones Industrial Average (DJI) added 93.32 points, or
0.6%, to 16,654.
The S&P 500 (SPX) climbed 13 points, or 0.7%, to 1,946.
Amazon.com Inc. led gains, while retailers were among the biggest
decliners.
Also read: Retailer shares take a beating.
The Nasdaq Composite (RIXF) added 40 points, or 0.9%, at
4,428.
Michael Arone, managing director at State Street Global
Advisors, said the day's economic data were positive enough to
indicate that consumers are still spending, but not strong enough
for the Federal Reserve raise rates sooner than currently
anticipated.
Looking more broadly at the markets and the S&P 500's recent
drop of nearly 4% from its peak, Arone said pullbacks historically
have tend edto be shorter and shallower when price-to-earnings
ratios are rising.
"Benign inflation and a stronger dollar mean that the U.S.
economy and company earnings will continue to grow. This is a
positive environment for the stock markets," he added.
Sales at U.S. retailers were unchanged in July, the weakest
result in six months, as sales fell at auto dealers, but rose at
gas stations and food and beverage stores, according to government
data released Wednesday. Separately, business inventories rose in
June by more than expected.
Individual stocks
Amazon.com Inc.(AMZN) climbed as the company launched a new
mobile payment service using a smartphone or tablet. Also read: For
retailers, Amazon is sexier than eBay
Shares of Macy's Inc. (M) fell following a disappointing outlook
and second-quarter sales that fell short of estimates.
Shares of SeaWorld Entertainment Inc. (SEAS) plunged after the
theme-park operator reported second-quarter results fell short and
the company cut its full-year sales outlook.
King Digital Entertainment (KING) sank after disappointing
quarterly results from the "Candy Crush" triggered a wave of
ratings downgrades from analysts. (Read more about the day's
notable movers here:
http://www.marketwatch.com/story/king-macys-among-stocks-to-watch-wednesday-2014-08-13.)
Networking-gear maker Cisco Systems (CSCO) will release results
after the close of Wednesday's trading session.
Elsewhere, oil futures (CLU4) fell, and gold futures (GCZ4)
rose. Asian markets overnight closed higher, with Hong Kong's Hang
Seng climbing 0.8%. In the U.K., the pound (GBPUSD) dropped sharply
against the U.S. dollar as prospects dimmed for an interest-rate
hike before the end of the year.
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