By Avantika Chilkoti

U.S. stocks gained Wednesday after strong earnings reports from retailers that eased some fears about slowing economic growth.

The Dow Jones Industrial Average rose 219 points, or 0.8%, to 26181 shortly after the opening bell. The S&P 500 also climbed 0.8% and the Nasdaq Composite added 0.8%.

Elsewhere, the Stoxx Europe 600 climbed 1.3%, led by Italian stocks.

Bond and equity markets have been gloomy about global growth in recent weeks, with many investors expecting a cycle of monetary easing from leading central banks. On Wednesday, investors were awaiting signs that the U.S. Federal Reserve might cut rates further when the central bank publishes minutes from its July meeting later in the day.

Analysts will be watching closely for insights into the debate surrounding last month's rate cut, as many, including Leslie Sita, portfolio manager in Lombard Odier IM's fundamental fixed income team, flagged concerns around the president's criticism of Fed Chairman Jerome Powell.

" Trump has made it clear he didn't like Powell's policy," she said, adding that strategists at Lombard Odier are forecasting a 50 basis point cut at the next meeting. "Even if Powell was wanting to mention that he's independent in the way he does things, obviously the pressure was there."

Strong retail earnings on Wednesday amid a volatile season for the sector gave U.S. stocks a lift in early trading.

Target shares jumped 16% after it reported that sales and profit rose in the second quarter and raised its earnings guidance for the year. Lowe's reported that profits rose, beating analysts' estimates. Shares rose 11%.

Meanwhile, the yield on 10-year U.S. Treasurys ticked up to 1.588%, from 1.557% on Tuesday.

Among the biggest gainers on the Stoxx Europe 600 index was Pandora, the Danish jewelry group, which was up more than 13% after results on Tuesday spurred hopes that a restructuring plan was helping the business.

In commodities, the price of Brent crude was up 1.5% to $60.96 a barrel as tensions in the Strait of Hormuz threatened global supplies while analysts worried global trade concerns could cap demand for oil in the coming months.

Australia announced plans to join a U.S.-led coalition protecting oil tankers and cargo ships from attacks by Iran in the region on Wednesday, as pressure on Tehran increased.

Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com

(END) Dow Jones Newswires

August 21, 2019 09:57 ET (13:57 GMT)

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