Retail Results Boost Stocks; Investors Hope Sales Gains Foreshadow Spending Hike
Stocks rose yesterday as sales increases at Wal-Mart Stores and J.C. Penney lifted the shares of retailers and renewed optimism that consumer spending will bolster the economy.</br></br>Retailers' May sales reports caused the market to bounce back from early losses after a report showed an unexpected increase in initial claims for unemployment benefits.</br></br>"The consumer is fine, so the market is not overly concerned with the employment numbers," said Doug Cote, who helps manage $40 billion in assets at ING Aeltus Asset Management Inc. in Hartford, Conn. "You have a lot of investors and money managers who have a greater fear of missing the market turn than the next down leg."</br></br>The Standard & Poor's 500-stock index rose 3.90 points, or 0.4 percent, to 990.14, its highest close since June 27, 2002. The Nasdaq composite index advanced 11.36, or 0.7 percent, to 1646.01.</br></br>Microsoft fell 78 cents, to $24.09, weighing on the Dow Jones industrial average, after chief executive Steve Ballmer said the firm faces "significant challenges." The Dow rose 2.32, or 0.03 percent, to 9041.30.