NEW YORK: US stocks on Wednesday finished solidly higher despite a lackluster US retail sales report and some disappointing earnings reports.
The Dow Jones Industrial Average rose 91.26 points (0.55 percent) to 16,651.80.
The broad-based S&P 500 gained 12.97 (0.67 percent) to 1,946.72, while the tech-rich Nasdaq Composite Index advanced a hefty 44.87 (1.02 percent) to 4,434.13.
US retail sales were virtually unchanged in July from the prior month and excluding the automobile sector, edged up just 0.1 percent, the Commerce Department said.
The report was weaker than analysts expected and highlighted the fragile economy where wage growth is minimal and unemployment, though easing, remains high.
Analysts diverged over the reasons for the stocks rally. A note from Charles Schwab said the market was betting the weak retail sales report would keep the US central bank from raising interest rates sooner than expected.
But Jack Ablin, chief investment officer at BMO Private Bank, said investors are flocking to Wall Street as "a safe haven" in light of international turmoil and after central bank announcements from Britain and Japan suggested easy monetary policy would continue in both countries.
Retailer Macy's sank 5.5 percent as it trimmed its 2014 forecast for comparable sales growth to 1.5-2.0 percent from the prior range of 2.5-3.0 percent. The company cited the continued drag from slow sales in the first quarter due to frigid weather that depressed activity.
Deere dropped 2.3 percent after the agricultural-equipment maker projected a six percent decline in equipment sales for 2014.
Game developer King Digital Entertainment plummeted 23.1 percent after reporting lower revenues compared with the prior quarter due to lower bookings from its signature "Candy Crush Saga" game.
SeaWorld Entertainment sank 32.9 percent as it warned of a 6.0-7.0 percent drop in 2014 revenues due in part to pending California legislation to ban the use of captive killer whales for entertainment aimed at SeaWorld's San Diego park.
InterMune bolted 14.4 percent higher on reports that larger pharma companies have bid for the biotechnology company.
Bond prices rose. The yield on the 10-year US Treasury fell to 2.41 percent from 2.44 percent Tuesday, while the 30-year dropped to 3.24 percent from 3.27 percent. Bond prices and yields move inversely.
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