US close: Stocks close higher as weak data makes rate hike seem unlikely
US stocks closed higher on Thursday after weak data on retail sales and industrial production fuelled bets against an interest rate hike by the Federal Reserve at next week’s meeting.
The Dow Jones Industrial Average increased 0.99% to 18,212.76 points, the S&P 500 edged up 1.01% to 2,147.28 points and the Nasdaq grew 1.47% to 5,249.69 points.
Oil prices also gained West Texas Intermediate crude up 0.63% to $43.86 per barrel and Brent up 1.4% to $46.51 per barrel.
US retail sales fell 0.3% in August, more than the 0.1% drop expected by analysts and following an upwardly revised 0.1% increase a month earlier, the Commerce Department revealed. It marked the first decline since March.
Excluding autos, retail sales last month decreased 0.1%, compared to forecasts for a 0.2% rise and July’s 0.3% dip.
Separately, US industrial production fell a touch more than expected in August, according to the latest data from the Federal Reserve.
Industrial output was down 0.4% after rising a revised 0.6% in July. Economists had been expecting a 0.2% decline.
Manufacturing output was also down 0.4% in August, reversing its increase in July, while the index for utilities fell back 1.4%.
“The weakness in retail sales and industrial production in August underline that the rebound in third-quarter GDP growth could be weaker than previously hoped, which is another reason for the Fed to pass on raising interest rates next week,” according to Capital Economics.
Fed governor Lael Brainard on Monday said she wanted to see more of a pick up in consumer spending and inflation before raising interest rates.
Elsewhere, the Empire State manufacturing index, which measures conditions in the New York area, remained in contraction in September, albeit rising to negative 2 from negative 4.2 in August. Economists had been expecting a reading of negative 0.5.
The Philadelphia Fed’s manufacturing index slowed to a reading of 12.8 in September, compared to 2 in August and economists’ expectations for a 0.8 reading.
US initial jobless claims rose by 1,000 to a seasonally adjusted 260,000 in the week ended 10 September, according to the Labor Department. Economists had pencilled in 265,000 claims. Claims for the previous were unrevised at 259,000.
US business inventories were unchanged in July, the Commerce Department said, missing estimates for a 0.1% increase and following the prior month’s unrevised 0.2% rise.
On the corporate front, Apple shares rallied for the fourth day in a row on strong demand for its new iPhone.
Goodyear Tire & Rubber Company advanced after the tire company raised its quarterly dividend by 43%.
Aerie Pharmaceuticals jumped after revealing promising results on the drug company’s treatment for lowering fluid pressure inside the eyeball.
Oracle Corp. was due to report quarterly earnings after the closing bell.
The dollar fell 0.04% versus the pound, dropped 0.26% against the yen and increased 0.07% against the euro.
Dow Jones - Risers
Apple Inc. (AAPL) $115.57 3.40%
Intel Corp. (INTC) $36.55 2.61%
Merck & Co. Inc. (MRK) $62.41 1.73%
Microsoft Corp. (MSFT) $57.22 1.71%
Unitedhealth Group Inc. (UNH) $135.74 1.54%
Wal-Mart Stores Inc. (WMT) $72.49 1.36%
Caterpillar Inc. (CAT) $82.09 1.32%
Goldman Sachs Group Inc. (GS) $168.32 1.30%
Travelers Company Inc. (TRV) $115.07 1.20%
Procter & Gamble Co. (PG) $88.03 1.17%
Dow Jones - Fallers
Boeing Co. (BA) $127.74 0.05%
General Electric Co. (GE) $29.79 0.30%
Walt Disney Co. (DIS) $92.57 0.34%
Exxon Mobil Corp. (XOM) $85.00 0.47%
JP Morgan Chase & Co. (JPM) $66.72 0.48%
Coca-Cola Co. (KO) $42.35 0.57%
Home Depot Inc. (HD) $127.00 0.59%
Pfizer Inc. (PFE) $34.15 0.62%
3M Co. (MMM) $176.78 0.66%
American Express Co. (AXP) $63.90 0.66%
S&P 500 - Risers
Skyworks Solutions Inc. (SWKS) $77.05 6.42%
Diamond Offshore Drilling Inc. (DO) $15.57 5.24%
Goodyear Tire & Rubber Co. (GT) $32.40 5.16%
Owens-Illinois Inc. (OI) $17.97 4.81%
Nordstrom Inc. (JWN) $51.76 4.76%
Marathon Petroleum Corporation (MPC) $43.65 4.25%
E*TRADE Financial Corp. (ETFC) $28.31 3.93%
Vertex Pharmaceuticals Inc. (VRTX) $93.59 3.85%
Baxter International Inc. (BAX) $47.15 3.79%
Nvidia Corp. (NVDA) $62.66 3.74%
S&P 500 - Fallers
VF Corp. (VFC) $56.26 -3.08%
Monsanto Co. (MON) $104.03 -2.56%
Tenet Healthcare Corp. (THC) $22.81 -1.89%
CenturyLink Inc. (CTL) $26.97 -1.68%
Csra Inc. (CSRA) $25.93 -1.57%
Discovery Communications Inc. Class A (DISCA) $24.40 -1.39%
United States Steel Corp. (X) $16.06 -1.38%
News Corp Class B (NWS) $14.16 -1.26%
Advance Auto Parts (AAP) $148.95 -1.17%
Frontier Communications Co. (FTR) $4.34 -1.14%
Nasdaq 100 - Risers
Skyworks Solutions Inc. (SWKS) $77.05 6.42%
Vertex Pharmaceuticals Inc. (VRTX) $93.59 3.85%
Nvidia Corp. (NVDA) $62.66 3.74%
Apple Inc. (AAPL) $115.57 3.40%
Dish Network Corp. (DISH) $51.98 3.36%
Electronic Arts Inc. (EA) $83.51 3.32%
Analog Devices Inc. (ADI) $62.71 2.94%
Micron Technology Inc. (MU) $17.42 2.86%
Autodesk Inc. (ADSK) $67.33 2.78%
T-Mobile Us, Inc. (TMUS) $47.11 2.70%
Nasdaq 100 - Fallers
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $233.20 -1.72%
Discovery Communications Inc. Class A (DISCA) $24.40 -1.39%
Viacom Inc. Class B (VIAB) $37.21 -0.61%
Akamai Technologies Inc. (AKAM) $51.38 -0.51%
Discovery Communications Inc. Class C (DISCK) $23.69 -0.42%
Charter Communications Inc. (CHTR) $266.04 -0.24%
JD.com, Inc. (JD) $25.96 -0.20%
O'Reilly Automotive Inc. (ORLY) $276.19 -0.10%
Mattel Inc. (MAT) $31.30 -0.08%
Liberty Media Corporation - Class A (LMCA) $27.53 0.05%