1:35 PM New York – U.S. stocks extended gains after retailers reported better than expected earnings. Best Buy, Home Depot and TJX reported stronger than expected quarterly results. J.C. Penney reported larger loss and sales in the quarter fell 12%. Emerging and Asian markets extended losses.
U.S. stocks traded higher after retailers reported better than expected earnings but struggling J.C. Penney results were below expectations.
Market indexes recovered after four days of decline.
S&P 500 index increased 0.6% or 9.51 to 1,655.54 and the Nasdaq Composite Index gained 0.8%.
In the absence of economic news, investors focused on minutes of latest Fed meeting scheduled to release on Wednesday. At the end of the week, the Fed will start its annual meeting of global central bankers in Jackson Hole, Wyoming.
Fed policy action speculation has roiled financial markets around the world and emerging markets from India, Indonesia and China are suffering from dramatic drop in asset prices in the last three weeks.
Rupee in Mumbai dropped to a new low of 64.13 against one dollar market indexes extended losses to 6% in the year so far. Market indexes in Indonesia fell more than 9% in the last six trading days.
In addition, the Nikkei in Japan trimmed annual gains in the last two months and the benchmark index has cut its annual gain from as high as 37% in the year to 29%.
U.S. Stocks in Review
Barnes & Noble Inc
) plummeted 15% after the company said its founder and largest shareholder Leonard Riggio suspended efforts to acquire retail business of the company.
) soared nearly 10% after the electronics retailer reported its largest quarterly income increase in two years on flat revenues. The retailer also expanded retail space for Samsung and Microsoft Windows products.
Dick’s Sporting Goods Inc
) declined after the retailer posted second-quarter earnings below estimated by analysts.
) gained 0.1% after it reported better than expected quarterly results and lifted annual revenues outlook.
) gained 4% and the struggling retailer reported lower than expected sales and quarterly loss widened.
In the fiscal second quarter ending on Aug 3, loss widened to $586 million of $2.66 a share from $147 million or 67 cents a share.
Revenues declined in the quarter 12% to $2.66 billion but the company said sales improved in each month in the quarter.
Same store decline in sales in the quarter improved to 11.9% from 21.7% in the period a year ago.
) decreased 3% after the maker of heart-rhythm devices reported lower than expected fiscal first-quarter sales.
) increased 6% after the discount apparel and home goods retailer reported better than expected earnings and sales and lifted its annual earnings outlook.
) surged 9% after the apparel retailer reported second-quarter earnings of 51 cents a share and said same store sales increased more than expected 9%.