Reuters logo
Wall Street flat as financials offset retail gains
September 14, 2010 / 8:28 AM / 7 years ago

Wall Street flat as financials offset retail gains

NEW YORK (Reuters) - Stocks were little changed on Tuesday after promising data from the retail sector fed recent optimism that the economic recovery, while slow, is proceeding.

<p>Traders work on the floor of the New York Stock Exchange, September 7, 2010. REUTERS/Brendan McDermid</p>

Retailers were a bright spot after data showed U.S. retail sales rose in August for their largest gain in five months. Best Buy Co Inc’s (BBY.N) higher-than-expected quarterly profit and raised outlook validated the government figures. The S&P Retail index rose 1.2 percent.

The broad S&P 500 index stayed above its 200-day moving average of around 1,115 after closing beyond that level on Monday for the first time since early August.

Wall Street analysts have eyed the 1,130 level as a key resistance point for the benchmark index, which could mean a strong move higher if it can pierce that target.

“We went through the 200-day yesterday, stayed above it today. It’s only natural that we consolidate here a little bit, but if we punch through here, we will see 1,200,” said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

Gains were capped as financial shares gave back recent gains leading up to the Basel III rules, announced over the weekend, which set new capital regulations for banks.

After hitting an eight-month low on August 30, the KBW Bank index .BKX jumped nearly 12 percent leading into the Basel announcement before falling 1.4 percent on Tuesday.

JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon said in an investor presentation the new capital rules are expected to increase bank loan prices for customers and may drive some to seek financing from non-bank financial institutions. Shares slipped 1 percent to $40.72.

Helping sentiment on Wednesday was a further decline in the U.S. dollar, which may indicate investors are turning away from safe-haven assets.

The Dow Jones industrial average .DJI dropped 17.64 points, or 0.17 percent, to 10,526.49. The Standard & Poor's 500 Index .SPX shed 0.80 points, or 0.07 percent, to 1,121.10. The Nasdaq Composite Index .IXIC gained 4.06 points, or 0.18 percent, to 2,289.77.

Nucor Corp (NUE.N) became the latest stock to trip the new market-wide circuit breaker rules, which pause trading for five minutes if the stock moves more than 10 percent, after the stock traded at 1 cent on the CBOE Stock Exchange.

Chipmakers led the technology sector higher, with the semiconductor index .SOX up 1.7 percent.

Volume was light with about 7.2 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, well below last year’s estimated daily average of 9.65 billion.

Declining stocks outnumbered advancing ones on the NYSE by 1.2 to 1, while on the Nasdaq, decliners beat advancers five to four.

Editing by Padraic Cassidy

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below