Wall St up as Fed signals no rate hike hurry - New York Report

US STOCKS rebounded yesterday from five straight sessions of losses after strong private sector jobs data and as minutes from the most recent Federal Reserve meeting reassured investors the bank was in no hurry to start raising interest rates.

The Dow Jones industrial average rose 212.88 points, or 1.23 per cent, to 17,584.52, the S&P 500 gained 23.29 points, or 1.16 per cent, to 2,025.9 and the Nasdaq Composite added 57.73 points, or 1.26 per cent, to 4,650.47.

Retailer shares jumped. J.C. Penney shares surged 20.3 per cent to $7.89, a day after the department store operator said same-store sales had risen 3.7 per cent in November and December.

Shares of Dick’s Sporting Goods jumped 11.7 per cent to $55.01. People familiar with the matter said the company was holding early-stage conversations with a handful of buyout firms about going private.

December same-store sales figures are due this week from more than 60 companies. The S&P retail index gained 2.1 per cent.

Housing shares were also among the day’s biggest gainers, up 2.3 per cent. Bloomberg reported that US President Barack Obama was set to announce a reduction of Federal Housing Administration mortgage insurance premiums.

Shares of D.R. Horton rose 5.1 per cent to $25.35.

Biotech shares also bounced back, with the Nasdaq Biotech Index jumping 3.6 per cent after falling 1.7 per cent in the previous session.

Related articles