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.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
