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Macy’s earnings fuel records for US stocks

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US stocks have pushed to fresh all-time highs after a strong earnings report from Macy’s raised hopes about the upcoming holiday shopping season.

The Dow Jones Industrial Average increased 70.96 points (0.45 per cent) to 15,821.63 on Wednesday, a new record.

The broad-based S&P 500 rose 14.31 (0.81 per cent) to 1,782.00, also a new record, while the tech-rich Nasdaq Composite Index advanced 45.66 (1.16 per cent) to 3,965.58

Macy’s shot up 9.4 per cent after earnings of 47 US cents per share exceeded expectations by 8 US cents and the company projected full-year profits that exceeded forecasts.

“We are entering the fourth quarter with confidence,” said Macy’s chief executive Terry Lundgren.

Art Hogan, head of product strategy for equity research at Lazard Capital Markets, said the Macy’s results raised hopes of better news from other retailers, including Wal-Mart, which reports earnings before the market opens on Thursday.

“It’s a better view of the health of the consumer than we had a few weeks ago,” Hogan said.

Among other retailers, Target rose 2.2 per cent, Williams-Sonoma gained 1.2 per cent, Costco increased 0.6 per cent and Wal-Mart nudged 0.2 per cent higher.

Some leading technology companies also prospered, including Facebook (+4.5 per cent), Google (+2.0 per cent) and Dow component Microsoft (+2.1 per cent).

Auto giant General Motors jumped 4.9 per cent after a US Treasury report showed the government sold more shares in October than expected.

Sterne Agee predicted the US government would exit the investment by year-end, which it rated “a positive catalyst” for the stock.

Ford Motor rose 2.3 per cent.

Starbucks advanced 1.1 per cent after an independent arbitrator ordered the coffee company to pay $2.7 billion over a failed distribution deal with Kraft, at the time owned by Mondelez.

Mondelez, which will receive the payment, rose 2.7 per cent.

Kraft increased 1.1 per cent.

Bond prices rose.

The yield on the 10-year US Treasury fell to 2.73 per cent from 2.77 per cent on Tuesday, while the 30-year declined to 3.83 per cent from 3.86 per cent. Bond prices and yields move inversely.