By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market closed with
modest gains on Wednesday, led by advances in the health-care and
technology sectors.
The main benchmarks gained in the three of the past four
sessions, bouncing off the lows reached last week.
Gains on the Nasdaq Composite were led by biotechnology
companies, with the iShares Nasdaq Biotechnology ETF (IBB) up 2.2%.
The Nasdaq Composite (RIXF) added 44.87 points, or 1%, to
4,434.13.
The Dow Jones Industrial Average (DJI) added 91.26 points, or
0.6%, to 16,651.80.
The S&P 500 (SPX) climbed 12.97 points, or 0.7%, to
1,946.72. Vertex Pharmaceuticals Inc.(VRTX) led gainers.
Even consumer plays nudged higher, despite softer-than-expected
retail sales data as well as disappointing quarterly results from
retailers such as Macy's Inc. and Fossil Group Inc.
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 tended to 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 that is aimed
at a market dominated by privately held Square. 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, the yields on the 10-year U.S. Treasurys (10_YEAR)
fell 33 basis points to 2.4% after weaker-than-expected retail
sales data reinforced speculation that the Federal Reserve won't
rush to raise rates. Oil futures (CLU4) were little changed, while
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.
More must-reads from MarketWatch:
4 signs this bull market is on its last legs
1 chart shows just how badly average investor lags -- even
cash
Fed could still be hero or goat: El-Erian
Subscribe to WSJ: http://online.wsj.com?mod=djnwires