By Sue Chang, MarketWatch , Ryan Vlastelica
Nasdaq extends winning streak to fifth session
The Dow on Thursday closed at a record for the 24th time in
2017, as gains in the financial sector helped the broader market
book modest gains ahead of a roster of corporate results from the
U.S.'s biggest banks.
The Dow Jones Industrial Average rose 20.95 points, or 0.1%, to
close at 21,553.09. The S&P 500 index gained 4.58 points, or
0.2%, to end at 2,447.83. The rise by the broad-market index was
supported by a 0.6% climb by financials--the best performer among
the index's 11 sectors.
Meanwhile, the Nasdaq Composite Index finished up 13.27 points,
or 0.2%, at 6,274.44, marking the tech-heavy gauge's fifth straight
finish in the green.
Another bright spot for the market was the beleaguered retail
sector, with one popular way to invest in the sector, the SPDR
S&P Retail ETF(XRT), posting its best daily climb of the year
with a gain of 2.3%. The move was paced by a 8.6% surge in shares
of Camping World Holdings Inc.(CWH) and J.C. Penney Co. Inc.(JCP),
up 7.8%.
The retail resurgence was underpinned by Target Corp. (TGT),
which said it now expects a surprise "modest increase" in
same-store sales
(http://www.marketwatch.com/story/targets-stock-jumps-after-raising-sales-profit-outlook-2017-07-13)
for the fiscal second quarter, citing improved traffic and sales
trends. Its stock climbed 4.8%.
Thursday trading action came as Federal Reserve Chairwoman Janet
Yellen delivered a second day of testimony on Capitol Hill,
reiterating dovish comments that appeared to bolster investor
confidence on Wednesday
(http://www.marketwatch.com/story/us-stock-futures-in-holding-pattern-as-traders-wait-for-yellen-2017-07-12).
Read:The stock market may not be able to defy gravity for much
longer
(http://www.marketwatch.com/story/the-stock-market-may-not-be-able-to-defy-gravity-for-much-longer-2017-07-12)
Yellen told a Senate Banking Committee on Thursday the
federal-funds rate wouldn't need to rise significantly to "get to a
neutral policy stance."
See:Live blog and video of Yellen's testimony
(http://www.marketwatch.com/story/us-stock-futures-in-holding-pattern-as-traders-wait-for-yellen-2017-07-12)
Some investors pocketed profits in response to the strong gains
in Wednesday's session but the market was relatively quiet,
according to Paul Nolte, portfolio manager at Kingsview Asset
Management.
In other Fed news, Dallas Fed President Rob Kaplan, in an essay
(http://www.marketwatch.com/story/dallas-feds-kaplan-becomes-third-fomc-member-to-question-need-for-more-rate-hikes-2017-07-13),
said he wants to see further evidence of a recovery in inflation
before considering another rate increase.
Wall Street is expecting corporate results from Wells Fargo
& Co.(WFC), Citigroup Inc. (C) and Dow component J.P. Morgan
Chase & Co. (JPM), which will be used to partially to gauge the
health of the economy. Bank earnings also set the early tone for
the start of second-quarter earnings season.
Read:Bank earnings: Expect a weak quarter as hopes for a "Trump
Bump" fizzle
(http://www.marketwatch.com/story/bank-earnings-expect-another-meh-quarter-of-weak-trading-revenue-2017-07-10)
A prolonged bout of market quietude, which weighed on trading
volumes, is expected to hurt bank revenues, as well as persistently
low yields despite the Fed's tightening efforts. Higher yields and
more active trading are bullish for the banking sector.
Thursday's rise for the sector (XLF)may also suggest that
investors are betting that the industry can outperform these
lowered expectations.
Economic docket: On the economic front, first-time jobless
claims fell by 3,000 in the latest week, reflecting an extremely
low level of layoffs
(http://www.marketwatch.com/story/us-jobless-claims-drop-3000-to-247000-2017-07-13)
that has become the norm as an economic recovery stretches into its
ninth year.
Separately, producer prices rose 0.1%
(http://www.marketwatch.com/story/us-wholesale-inflation-up-slightly-in-june-but-no-longer-rising-rapidly-ppi-shows-2017-07-13),
about even with expectations.
See MarketWatch's Economic Calendar.
(http://www.marketwatch.com/economy-politics/calendars/economic)
Oil blues: Oil prices recovered from an earlier drop to settle
higher. The International Energy Agency said global oil supply in
June rose by 720,000 barrels
(http://www.marketwatch.com/story/iea-raises-oil-demand-forecast-says-output-increased-in-june-2017-07-13)
to 97.46 million a day, boosted by both higher production from OPEC
and non-OPEC producers such as the U.S.
Stock movers: Shares of Nvidia Corp.(NVDA) dropped 1.2% after
surging to a record close on Wednesday
(http://www.marketwatch.com/story/nvidias-stock-jumps-to-6th-straight-gain-after-suntrust-upgrade-2017-07-12)
on the back of an upgrade at SunTrust.
Delta Air Lines Inc. (DAL) reported second-quarter earnings that
missed expectations
(http://www.marketwatch.com/story/delta-profit-misses-estimates-but-revenue-rises-2017-07-13),
although revenue rose. Shares fell 1.8%.
Snap Inc. (SNAP) surged 3% after Stifel Nicolaus upgraded the
Snapchat parent to buy
(http://www.marketwatch.com/story/snaps-stock-surges-after-stifel-turns-bullish-as-selloff-as-created-a-compelling-opportunity-2017-07-13),
saying that a recent selloff in the stock had created a
"compelling" opportunity.
U.S.-listed shares of Novartis AG(NOVN.EB) fell 0.8% despite a
Food and Drug Administration advisory panel late Wednesday
unanimously recommended the agency approve one of its cancer drugs
(http://www.marketwatch.com/story/novartis-gets-fda-panel-recommendation-for-leukemia-drug-approval-2017-07-12).
NRG Energy Inc.(NRG) jumped 5.3%, extending its climb on
Wednesday, which was its best-ever one-day percentage gain
(http://www.marketwatch.com/story/nrg-energys-stock-rockets-to-biggest-ever-one-day-gain-2017-07-12).
Tiffany & Co. (TIF) rose 1.7% after it named Alessandro
Bogliolo as its new chief executive
(http://www.marketwatch.com/story/tiffany-names-diesel-head-alessandro-bogliolo-ceo-2017-07-13-6915717),
effective Oct. 2.
Other markets: Asian stocks closed mostly higher, while European
equities
(http://www.marketwatch.com/story/european-stocks-rise-again-building-on-largest-advance-in-212-months-2017-07-13)
added to their Yellen-fueled gains.
Most metals fell with gold finishing weaker while the ICE Dollar
Index was mostly unchanged.
--Sara Sjolin contributed to this article.
(END) Dow Jones Newswires
July 13, 2017 17:43 ET (21:43 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.