Better than expected results from retail companies on Tuesday lifted the S&P 500 index on Wall Street, breaking a 4-day negative streak, although the market lacks the impetus for a stronger recovery.
The S&P 500 index strengthened by 0.38 percent yesterday, to 1,652 points. However, it failed to remain above the 50-day moving average and has been below 1,657 points for the third consecutive day. This level has now become a technical resistance.
The Dow Jones index fell by 7.75 points or 0.05 percent, to 15,002 points, marking its fifth consecutive day of decline, the longest negative streak in a year.
The technology Nasdaq, on the other hand, strengthened by 0.68 percent yesterday, to 3,613 points.
A number of American retail chains, from Best Buy to Marshalls, reported second-quarter sales results above analysts’ expectations yesterday. This eased investors’ concerns about the outlook for personal consumption in the U.S., after Wal-Mart and several other retail companies disappointed last week.
On average, the stock prices of retail companies on Wall Street rose by 1.2 percent yesterday.
“Last week, retail companies reported terrible data, so now we have a mixed picture again,” says Ken Polcari from the investment firm O’Neil Securities.
Furthermore, yields on U.S. Treasury securities, although slightly lower than on Monday, remain at the highest levels in the last two years, prompting investors to pull capital from riskier assets such as stocks and buy U.S. government debt securities. The yield on 10-year Treasury notes weakened to 2.8 percent on Tuesday, down from 2.88 percent recorded on Monday.
