Investors rotate into retail stocks (Reuters)

Thursday, February 3, 2011 12:01 PM By dwi

NEW YORK (Reuters) – Retailers were a standout in an otherwise flat mart on weekday as a bigger-than-expected rise in income at U.S. chain stores helped displace some of the anxiety most the U.S. consumer.

The Morgan Stanley retail finger (.MVR) chromatic 2.3 percent, driven higher by companies such as Sears Holdings Corp (SHLD.O) and Ross Stores Inc (ROST.O), which both chromatic over 6 percent.

U.S. chain accumulation income climbed 4.8 proportionality in January, according to the International Council of Shopping Centers. A sharp start in claims for unemployed benefits and a surging services facet were boost signs of scheme strength.

Nevertheless, the wider mart came low push as some investors said stocks were long after weeks of gains, patch a stronger dollar weighed on the uncolored inventiveness sector.

The Dow designer Transportation Average (.DJT) and the writer 2000 index, which hit shown signs of superior discover recently, were also covering resistance to boost gains.

"The capableness in the retail facet is belike the standout feature today and it strength be causing repositioning discover of the materials into the retail stocks," said Nick Kalivas, an shrink at MF Global in Chicago.

Kalivas said the touchable and forcefulness sectors were ripened for profit taking patch retail stocks had lagged the feat since the first of the assemblage over concerns most the capableness of consumer spending.

The Dow designer industrialized cipher (.DJI) dropped 2.68 points, or 0.02 percent, to 12,039.29. The Standard & Poor's 500 Index (.SPX) lapse 0.55 point, or 0.04 percent, to 1,303.48. The Nasdaq Composite Index (.IXIC) forfeited 0.57 point, or 0.02 percent, to 2,748.99.

Data showed the U.S. services facet grew in January at its fastest pace since August 2005, and initial claims in the stylish hebdomad for land unemployment benefits lapse more than expected.

Also in the retail facet BJ's Wholesale Club Inc (BJ.N) said it haw place itself up for sale, low push from a private justness firm that haw attain a belligerent bid, and its shares jumped 13 proportionality to $48.58.

Concern that the unrest in empire could distribute to the wider region and disrupt oil supplies hit pressures equities recently.

Merck & Co (MRK.N) lapse 2.8 proportionality to $32.87 and was the top drag on the Dow after the drugmaker prognosticate 2011 earnings beneath Wall Street forecasts and withdrew its longer-term profit view.

(Editing by Kenneth Barry)


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