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Overnight Markets: Wall Street rebounds as retailers gain
by Himanshu Singh on Aug 21, 2013 at 04:51
Wall Street gained on Tuesday, with the Standard & Poor’s 500 snapping a four-day losing streak, as earnings from Best Buy and TJX Cos helped buoy retailers and investors awaited signals on stimulus measures from the Federal Reserve.
The Dow Jones industrial average fell eight points or 0.05%, to 15,003, the S&P 500 gained six points or 0.38%, to 1,652 and the Nasdaq Composite added 24 points or 0.68%, to 3,614.
TJX Cos (TJX.N) jumped 6.9% after the owner of the discount T.J. Maxx and Marshalls chains reported better-than-expected quarterly sales, bucking a trend of weak results by a number of retailers.
Shares of Best Buy (BBY.N) jumped 13.2% after the world's largest consumer electronics chain reported a higher quarterly profit.
Urban Outfitters (URBN.O) shares climbed 8.2% a day after the apparel retailer's quarterly profit beat market estimates.
J.C. Penney (JCP.N) shares advanced 6% after the troubled retailer said the back-to-school season has so far been encouraging.
However, US Treasuries yields, although down from Monday, were still at two-year highs, encouraging investors to dump riskier assets like stocks to buy US government debt. The yield on the benchmark 10-year note dipped to as low as 2.80% on Tuesday from 2.88% in the prior session.
Today, Investors will be able to study the minutes from the Fed’s July meeting, which may provide clues about policymakers' plans for so-called quantitative easing.
On the negative side, Home Depot (HD.N) gave up early gains to close down 1.2% despite boosting its yearly outlook.
Barnes & Noble (BKS.N) shares tumbled more than 12% after the book retailer reported a steeper quarterly loss and its founder dropped his plan to buy the company's stores.
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