US stocks on course to rebound in afternoon trade

FILE- In this April 26, 2018, file photo, Vincent Pepe enjoys some fresh air outside the New York Stock Exchange where he works in the Financial District in New York. The U.S. stock market opens at 9:30 a.m. EDT on Wednesday, May 16. (AP Photo/Kathy Willens, File)
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AP Business Writer

U.S. stock indexes moved higher in late-afternoon trading Wednesday, led by gains in big technology names, health care companies and retailers. Macy’s led a rally among retailers after reporting surprisingly strong results. Small-company stocks fared better than the rest of the market. Safe-play stocks like utilities and real estate companies lagged.

The S&P 500 index rose 15 points, or 0.6 percent, to 2,727 as of 3 p.m. Eastern Time. The Dow gained 87 points, or 0.4 percent, to 24,794. The Nasdaq composite added 59 points, or 0.8 percent, to 7,411. The Russell 2000 index of smaller-company stocks picked up 20 points, or 1.3 percent, to 1,620.

“Earnings growth has shown through and that’s been primarily based on strong fundamental growth from U.S. companies,” said Jamie Lavin, global investment specialist at J.P. Morgan Private Bank. “And when equity markets are able to look through to that and we don’t have any major geopolitical headlines, we tend to have stronger days in the market.”

BIG GAINERS: Technology and health care sector companies notched solid gains. Micron Technology rose 4.9 percent to $56.66, while Cerner added 3.3 percent to $60.20.

RETAIL RALLY: Macy’s jumped 10.9 percent to $33.20 after reporting quarterly results that were far better than analysts were expecting. The company said its Bloomingdale’s and Bluemercury divisions as well as its flagship store brand all did well. Several other retailers also moved higher. Nordstrom added 2 percent to $50.86, while L Brands gained 3.1 percent to $34.33. Target shares picked up 2.9 percent to $75.21.

ENCOURAGING UPDATE: Office Depot climbed 6.2 percent to $2.49 after the office supply company maintained its forecasts for the year.

FIDO APPROVED: Abaxis vaulted 16.2 percent to $83.38 after the veterinary diagnostic products company agreed to be acquired by Zoetis.

WARREN’S WAY: Teva Pharmaceutical Industries added 3.3 percent to $20.97 after Warren Buffett’s company Berkshire Hathaway more than doubled the size of its investment in the Israeli drugmaker. Phillips 66 slipped 0.8 percent to $117.43 after the Berkshire sold about half of its investment in the oil and gas company.

BOND YIELDS: Bond prices fell. The yield on the 10-year Treasury rose to 3.09 percent from 3.07 percent late Tuesday, when the yield climbed to its highest level in nearly seven years.
Utilities and other high-dividend paying stocks declined Wednesday, added to losses from a day earlier. Sempra Energy fell 1.4 percent to $103.79.

Benchmark U.S. crude oil recovered from an early slide, adding 18 cents to settle at $71.49 a barrel in New York. Brent crude, used to price international oil, rose 85 cents to close at $79.28 a barrel in London.

The dollar fell to 110.22 yen from 110.38 yen on Tuesday. The euro weakened to $1.1804 from $1.1847.

Gold rose $1.20 to $1,291.50 an ounce. Silver added 10 cents to $16.37 an ounce. Copper gained 1 cent to $3.07 a pound.

Major indexes in Europe rose. Germany’s DAX gained 0.2 percent, while France’s CAC 40 added 0.3 percent. Britain’s FTSE 100 rose 0.1 percent. In Asia, Japan’s Nikkei 225 stock index lost 0.4 percent following new data showing that Japan’s economy contracted in the first quarter. The Kospi in South Korea was essentially flat. Hong Kong’s Hang Seng slipped 0.1 percent.