Stocks higher following retail, inflation reports - KMSP-TV

Stocks higher following retail, inflation reports

Posted: Updated:

By KEN SWEET   AP Markets Writer

NEW YORK (AP) -- Reports that Americans spent more last month and inflation remained tame gave stocks a lift Friday.

The Dow Jones industrial average added 73 points as of 12:40 p.m. Eastern, or 0.5 percent, to 15,373. The Dow got a lift from Intel. Analysts at Jefferies & Co. said Intel may be able to increase its sales with power-efficient chips. Intel rose 64 cents, or 2.8 percent, to $23.26.

The Standard & Poor's 500 index rose four points, or 0.3 percent, to 1,688. The Nasdaq composite index was barely positive, up a point to 3,717, weighed down by Apple. The iPhone maker is down more than six percent this week after Apple's latest product announcement did not live up to expectations.

Traders had a few economic reports to work through. The Commerce Department said Americans increased their spending modestly in August, roughly 0.2 percent, half of what economists expected.

The report was a mixed bag. Consumers spent more on cars, electronics and furniture, but they didn't buy much else. Last month, several retail chains including Nordstrom, Macy's and Wal-Mart cut their profit forecasts for the year.

The government also reported that wholesale prices rose 0.3 percent last month. Over the past year, prices have only gained 1.4 percent, a sign that inflation remains modest. One thing driving wholesale prices higher was energy, which spiked as a conflict with Syria appeared likely.

Trading is light as Wall Street heads into the weekend and the Jewish holiday of Yom Kippur starts at sundown. Approximately 2.3 billion shares have traded hands on the New York Stock Exchange so far Friday, versus the 6.5 billion typically traded on an average day.

Investors are also waiting for the Federal Reserve's policy meeting Sept. 17-18, where the central bank is expected to decide the future of its bond-buying program.

"There's a lot of `wait and see' going on until the Fed meeting next week," said Frank Davis, director of sales and trading at LEK Securities.

The Fed currently buys $85 billion in bonds each month, and the consensus among investors is that the central bank will decide to reduce its buying to about $75 billion or $80 billion a month. The question is no longer whether the Fed will cut back on its bond buying but by how much, said Scott Clemons, chief investment strategist with Brown Brothers Harriman.

September has been very strong for stocks so far. The Dow is up 3.6 percent in September and the S&P 500 is up 3.3 percent.

In corporate news, Ulta Salon, Cosmetics & Fragrances surged as the company's fiscal second-quarter profit jumped 28 percent on stronger sales at its growing chain of beauty product stores. The stock jumped $17.47, or 17.4 percent, to $117.60.

Galena Biopharma plunged nearly 16 percent to $1.92 after the company sold 17.5 million shares of stock at $2 per share.

AP-WF-09-13-13 1649GMT

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Your MoneyMore>>

  • Do you waive your right to sue if you follow a company on social media?

    Do you waive your right to sue if you follow a company on social media?

    Friday, April 18 2014 8:19 AM EDT2014-04-18 12:19:02 GMT
    General Mills quietly tweaked its legal policies, which made getting coupons or joining a contest online two things that would simultaneously prevent you from being able to sue the company. But what about Tweeting or just liking a General Mills company's Facebook page? There's concern about that, too.
    General Mills quietly tweaked its legal policies, which made getting coupons or joining a contest online two things that would simultaneously prevent you from being able to sue the company. But what about Tweeting or just liking a General Mills company's Facebook page? There's concern about that, too.
  • Wineries flourish in Brooklyn

    Wineries flourish in Brooklyn

    Thursday, April 17 2014 10:34 PM EDT2014-04-18 02:34:04 GMT
    Hundreds of oak barrels of wine are all stacked in one room. You might think this is Napa, California. But it's not. It's the Brooklyn Winery, located in what was once an old pickle factory in Williamsburg. Refrigerated grapes are brought in from the North Fork of Long Island and from the Finger Lakes and then aged in barrels. These days urban wineries are becoming more popular, and they're popping up all over the borough.
    Hundreds of oak barrels of wine are all stacked in one room. You might think this is Napa, California. But it's not. It's the Brooklyn Winery, located in what was once an old pickle factory in Williamsburg. Refrigerated grapes are brought in from the North Fork of Long Island and from the Finger Lakes and then aged in barrels. These days urban wineries are becoming more popular, and they're popping up all over the borough.
  • Catalog shopping is alive and well

    Catalog shopping is alive and well

    Thursday, April 17 2014 9:57 PM EDT2014-04-18 01:57:31 GMT
    Bonobos is an online men's clothing store. The company tried something new in 2013 by trying something, well, old. Bonobos mailed to some customers a traditional catalog. The results were very surprising to these Internet retailers: the catalog attracted more customers to the website. Bonobos' catalog circulation has now increased.
    Bonobos is an online men's clothing store. The company tried something new in 2013 by trying something, well, old. Bonobos mailed to some customers a traditional catalog. The results were very surprising to these Internet retailers: the catalog attracted more customers to the website. Bonobos' catalog circulation has now increased.
Powered by WorldNow

KMSP-TV
11358 Viking Drive
Eden Prairie, MN 55344

Phone: (952) 944-9999
Fax: (952) 942-0455

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices