Energy shares drop but Cisco helps market - New York Report

US STOCKS finished flat yesterday as a drop in energy shares offset a rebound in retail sales and stronger-than-expected Cisco results.

The Dow Jones industrial average rose 5.74 points, or 0.03 per cent, to 17,408.25, the S&P 500 lost 2.66 points, or 0.13 per cent, to 2,083.39 and the Nasdaq Composite dropped 10.83 points, or 0.21 per cent, to 5,033.56.

The S&P financial index rose 0.3 per cent, after falling in the previous two sessions.

US retail sales rose in July, while the trend of weekly jobless claims pointed to a tightening job market. The data supported the view the Federal Reserve could raise interest rates as early as next month, offsetting speculation in the previous two sessions that the Fed could wait until December to raise rates after China devalued its currency.

“The market is still adjusting to the Chinese devaluation. Obviously, that’s created a lot of uncertainty and people are not sure how this is going to play out,” said Michael O’Rourke, chief market strategist at JonesTrading.

Cisco jumped 2.9 per cent to $28.70, giving the biggest boost to the Nasdaq and the S&P 500.

Coty rose 2.9 per cent to $28.70 after its sales beat estimates for the first time in five quarters, while Kohl’s fell 8.8 per cent to $56.11 after its same-store sales missed expectations.

News Corp rose 7.6 per cent to $15.19 after the Wall Street Journal owner’s profit topped estimates, helped by cost cuts at its news business, including Dow Jones.