US stocks gain on good retailer earnings

New York, Aug 21 (AFP/APP):Wall Street stocks bounced early Wednesday after strong US retailer results and ahead of the release of Federal Reserve meeting minutes.

The strong earnings came as yields on the 10-year US Treasury note pushed higher after faltering Tuesday. Higher yields are seen as a sign confidence in the medium-term economic outlook.

About 15 minutes into trading, the Dow Jones Industrial Average was up 1.0 percent at 26,227.75.

The broad-based S&P 500 also gained 1.0 percent to 2,928.39, while the tech-rich Nasdaq Composite Index jumped 1.1 percent to 8,033.71.

Big box chains Target and Lowe’s reported higher profits on strong gains in comparable store sales, offering the latest confirmation that US consumers remain strong despite weakness in manufacturing and key overseas markets.

Target surged 16.7 percent, while Lowe’s gained 10.2 percent.

Markets now will be awaiting minutes from the Fed’s July 30-31 meeting when the central bank cut the benchmark interest rate for the first time in more than a decade but offered confusing signals on whether to expect further interest rate cuts this year.

Analysts are also looking forward to an appearance by Fed Chair Jerome Powell at a central bank conference later this week, following relentless attacks from US President Donald Trump who on Wednesday said the Fed chief “is like a golfer who can’t putt” and has “only let us down.”

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