Soaring biotech shares assisted investors in shaking off discouraging retail sales data, as U.S. stocks ended higher on Wednesday, including The Dow Jones Industrial Average.
Commerce Department data was the weakest report since January, showing that U.S. retail sales unexpectedly stalled in July, leading retail stocks to cap the market’s gains. It’s possible that the July data could give the Federal Reserve increased support to raise interest rates at a slower pace, which would benefit investors in equities, reports Reuters.
The Dow Jones Industrial Average was up 29.09 points or 0.18 percent, to 16,589.63, while the Dow Jones Transportation Average gained 0.7 percent. Meanwhile, The Business Recorder reports the S&P 500 rose 5.26 points or 0.27 percent, to 1,939.01 and the NASDAQ Composite gained 21.12 points or 0.48 percent, to 4,410.37.
Lawrence Glazer, managing partner at Mayflower Advisors in Boston, said, “Investors seem to be looking past the retail numbers and seeing the silver lining, which is that the Fed could be less hawkish and keep interest rates down for longer. Domestically, despite some questionable earnings reports, areas like biotech, transports and Amazon all gave a boost to markets today,” according to Reuters.
The Dow has now gained 0.45 percent this year.
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