By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rebounded
Wednesday, helped by results from retailers Target Corp. and
Tiffany & Co., and ahead of speeches from Federal Reserve
officials including Fed Chairwoman Janet Yellen.
Investors also awaited the minutes from the latest Federal Open
Market Committee meeting due at 2 p.m. Eastern time for clues about
the timing of the first rate hike.
The S&P 500 index (SPX) rose 11 points, or 0.6%, to
1,883.84, with gains across all 10 main sectors. The Dow Jones
Industrial Average (DJI) jumped 128 points, or 0.8%, to 16,502.04.
The Nasdaq Composite (RIXF) gained 27 points, or 0.7%, to
4,123.56.
Follow MarketWatch's live blog of today's stock-market
action.
"Today we get Fed minutes, which sometimes move markets,
especially after Plosser's remarks yesterday that some believe
ignited the weakness midday," Scott Redler, chief strategist at T3
Live and T3 Trading Group, wrote in emailed comments.
"I'm not so sure it was his statements that made the difference,
all I know is that frustration is running high and there is a
distinct difference between the action in each market," he
added.
Retail companies were in the spotlight again with several
earnings releases ahead of the opening bell.
Shares of Tiffany (TIF) jumped 8.9% after the luxury-jewelry
maker reported sales and earnings that beat estimates, and it
lifted its outlook for fiscal 2015.
Target (TGT) shares gained 0.7% after the discount chain posted
adjusted quarterly earnings of 70 cents a share, vs. forecasts for
71 cents, on sales that roughly matched expectations. On Tuesday,
the company replaced the president of its struggling Canadian
business.
Retail stocks were hit on Tuesday, contributing to broad losses,
after disappointing earnings from TJX Cos. (TJX) and Staples Inc.
(SPLS) among others.
Home-improvement retailer Lowe's (LOW) on Wednesday reported
first-quarter earnings that came in ahead of analyst expectations
by one penny a share, but sales missed estimates. Lowe's also
lifted its per-share earnings view for 2015. Shares were last down
0.4%.
PetSmart Inc. (PETM) dropped 4.5% after it reduced its outlook
as it delivered its quarterly results.
Shares in American International Group Inc. (AIG) rose 2.6%
after Goldman Sachs analysts upgraded the stock to buy from neutral
and raised the price target to $63.
Michael Nannizzi and team wrote: "We believe AIG will generate
[systematically important financial institution]-high capital and
is best positioned among SIFI candidates to deploy capital
accretively into its core businesses if large-scale buybacks are
not a near-term option."
Yellen, Dudley speeches, minutes ahead
Investors will get a look at the minutes of the latest Fed
meeting at 2 p.m. Eastern time, which could reveal details of when,
and by how much, interest rates will be raised. The Fed continued
to taper at its April 30 meeting, saying activity had "picked up
recently" after a winter slowdown.
Yellen will deliver the commencement speech at Yankee Stadium
for New York University students at 11 a.m. Eastern time. The Fed
chief is part of a busy Fed lineup for Wednesday.
New York Fed President William Dudley, who is a voting member of
the Fed policy committee, will hold a quarterly press briefing on
regional labor markets and economic conditions at 11 a.m. Eastern
time. Read also: Fed's Dudley says pace of rate hikes to be
'slow.'
Kansas City Fed President Esther George, who is not a voting
member this year, will deliver a speech in Washington on the
economy and banking at 12:50 p.m. Eastern time. Voting-member
Minneapolis Fed President Kocherlakota will speak on monetary
policy and the economy at the Economic Club of Minnesota at 1:30
p.m. Eastern time.
U.K. stocks fall, European stocks gain modestly
In overseas markets, European stocks made small gains as
investors kept an eye on key European Parliament elections and
purchasing-manager index data due later in the week. U.K. stocks
fell for a third day and the British pound (GBPUSD) jumped against
the dollar after the release of minutes from the Bank of England's
latest meeting that were viewed as hawkish.
Asian stocks posted moderate losses across the board, with the
Nikkei 225 index off 0.2% and the Bank of Japan leaving its
monetary policy on hold at its latest meeting.
Gold for June delivery (GCM4) dipped, while oil for July
delivery (CLN4) pared gains ahead of a report on U.S. supply data.
Citigroup also raised its Brent oil forecasts for 2014 and 2015 on
Wednesday.
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