Wall St jumps with tech, energy; Target news weighs on retailers
- Target's margin cut hits some retail stocks
- Kohl's climbs on sale talks with Franchise Group
- Indexes: Dow up 0.8%, S&P 500 up 1%, Nasdaq up 0.9%
- Kohl's climbs on sale talks with Franchise Group
- Indexes: Dow up 0.8%, S&P 500 up 1%, Nasdaq up 0.9%
U.S. stocks rallied late on Tuesday to end higher for a second straight day as technology and energy shares gained, while $Target(TGT.US$ 's warning about excess inventory weighed on retail stocks for much of the session.
$Apple(AAPL.US$ shares climbed 1.8% despite news earlier in the day that the company must change the connector on iPhones sold in Europe by 2024 after EU countries and lawmakers agreed to a single charging port for mobile phones, tablets and cameras.
The S&P 500 technology index rose 1% and gave the benchmark index its biggest boost. Microsoft Corp shares added 1.4%.
The S&P 500 energy sector index jumped 3.1% to end at its highest level since 2014, with oil prices sharply higher.
At the same time, shares of Target Corp fell 2.3% after the retailer said it would have to offer deeper discounts and cut back on stocking discretionary items.
Equity trading was choppy, with indexes down early in the day, but the market has been recovering from recent steep losses.
Long-dated U.S. Treasury yields tumbled after the Target news, however, as it fueled some speculation that the worst of inflation may be in the past.
The $Dow Jones Industrial Average(.DJI.US$ 264.36 points, or 0.8%, to 33,180.14, the $S&P 500 Index(.SPX.US$ gained 39.25 points, or 0.95%, to 4,160.68 and the $Nasdaq Composite Index(.IXIC.US$ added 113.86 points, or 0.94%, to 12,175.23.
Consumer price data on Friday is expected to show that inflation remained elevated in May, though core consumer prices, which exclude the volatile food and energy sectors, likely ticked down on an annual basis.
Not all retailers were in the red. $Kohl's Corp(KSS.US$ 's Corp shares jumped 9.5% after news the department store chain entered exclusive talks with retail store operator $Franchise(FRG.US$ over a potential sale that would value it at nearly $8 billion.
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