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US STOCKS- Wall Street rebounds after 4-day slump; retailers gain
August 20, 2013 / 4:07 PM / 4 years ago

US STOCKS- Wall Street rebounds after 4-day slump; retailers gain

* Home Depot, Best Buy shares rise after results

* Investors looking to Fed minutes due Wednesday

* Indexes up: Dow 0.4 pct; S&P up 0.7 pct, Nasdaq up 0.9 pct

By Angela Moon

NEW YORK, Aug 20 (Reuters) - U.S. stocks rose on Tuesday, boosted by major retailers Home Depot and Best Buy Co on positive profits and outlooks, after the market’s longest losing streak this year.

But gains were capped as prices of U.S. Treasuries advanced after a recent slump pushed yields to two-year highs, encouraging investors to dump riskier assets like stocks and buy relatively cheap U.S. government debt. The yield on the benchmark 10-year note dipped to 2.83 percent after hitting 2.88 percent on Monday, a two-year high.

“Stocks are rebounding today but we are seeing a lot of market swings because of the concerns on Fed tapering, so I wouldn’t be surprised if we ended flat or lower by the end of the day,” said Randy Frederick, managing director of active trading and derivatives at the Schwab center for financial research Austin, Texas.

Investors are now awaiting minutes, due on Wednesday, of the U.S. central bank’s most recent meeting. Those minutes could help investors better understand the mind-set of policymakers as they consider weaning the world’s biggest economy off the so-called quantitative easing program.

Best Buy, Home Depot and J.C. Penney led a string of retailers posting results, sending their shares up in early trading. Consumer-focused shares had recently been battered as many earlier reports on retailers’ sales failed to impress investors.

The S&P closed lower on Monday at 1,646.06, below its 50-day moving average for a second straight day and at its lowest since July 8.

The Dow Jones industrial average was up 60.02 points, or 0.40 percent, at 15,070.76. The Standard & Poor’s 500 Index was up 11.35 points, or 0.69 percent, at 1,657.41. The Nasdaq Composite Index was up 32.57 points, or 0.91 percent, at 3,621.65.

TJX Cos, the owner of the discount T.J. Maxx and Marshalls chains, reported better-than-expected quarterly sales, bucking a trend of weak results at a host of retailers. Its shares gained 5.7 percent to $53.65.

Home Depot shares rose 0.2 percent to $75.33 after the world’s largest home improvement chain raised its yearly outlook.

Shares of Best Buy jumped 9 percent to $33.51 after the world’s largest consumer electronics chain reported a higher quarterly profit.

Urban Outfitters shares gained 10.1 percent $43.95 one day after the apparel retailer’s quarterly profit beat market estimates.

J.C. Penney shares gained 3.1 percent to $13.63 after the troubled retailer said the back-to-school season has so far been “encouraging.”

But Barnes & Noble shares tumbled more than 15 percent to $14.07 after the book retailer reported a steeper quarterly loss and its founder dropped his plan to buy the company’s stores.

China-based Trina Solar reported a smaller quarterly loss as it shipped more solar panels to newer markets and diversified sources of revenue. Its shares rose 8.6 percent to $7.36.

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