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US Stocks Rally on Tuesday             08/14 16:20

   U.S. stocks rallied Tuesday as banks, retailers, and smaller companies 
jumped.

   NEW YORK (AP) -- U.S. stocks rallied Tuesday as banks, retailers, and 
smaller companies jumped. That helped the market recover most of its losses 
from the previous two days.

   The Turkish lira steadied as officials from Turkey and the U.S. said the 
countries are in talks to ease diplomatic tensions, which have resulted in high 
tariffs on Turkish steel and aluminum. Stocks in emerging markets like 
Argentina, Russia and Brazil jumped.

   In the U.S., the biggest gains went to small and mid-size companies, which 
do more business domestically compared to the large multinational firms on 
indexes like the S&P 500 and the Dow Jones Industrial average. Retailers rose, 
thanks in part to strong quarterly reports.

   The reduced tensions with Turkey also stopped a rally in bond prices and 
sent yields and interest rates higher. That helped banks. Industrial and basic 
materials companies also rose Tuesday, but compared to other parts of the 
market, they didn't recover as much of their losses.

   Invesco Chief Global Market Strategist Kristina Hooper said investors are 
shifting money into more U.S.-focused companies in response to the Trump 
administration's aggressive handling of its dispute with Turkey, a longtime 
member of NATO.

   "This is a reminder that the U.S. is a very different country than it was 
just a few years ago," she said.

   The S&P 500 index climbed 18.03 points, or 0.6 percent, to 2,839.96. The Dow 
Jones Industrial Average gained 112.22 points, or 0.4 percent, to 25,299.92. 
The Nasdaq composite added 51.19 points, or 0.7 percent, to 7,870.89. The 
Russell 2000 index advanced 17.26 points, or 1 percent, to 1,692.58.

   The S&P 500 fell a combined 1.1 percent Friday and Monday as investors 
worried that Turkey's financial woes would affect other countries.

   Many retailers will report their quarterly results this week, a potential 
hint about how much money consumers are spending. Tapestry, the parent company 
of Coach and Kate Spade, jumped after its fourth-quarter results surpassed 
analysts' estimates. The stock surged 12 percent to $53.16.

   Auto parts retailer Advance Auto Parts jumped 7.8 percent to $156.13 after 
it did better than expected in the second quarter. Competitors AutoZone and 
O'Reilly Automotive climbed as well.

   Smaller companies made outsize gains. Footwear maker Wolverine World Wide 
gained 2.4 percent to $38.39 and watchmaker Fossil rose 4.8 percent to $25.68.

   Among midsize companies, Boston Beer picked up 3.9 percent to $291.30 and RV 
maker Thor Industries rose 2.6 percent to $97.06.

   Global markets fell Friday and Monday on concern that Turkey's currency 
turmoil could spread to banks in other countries and affect the world economy. 
The Argentine peso and India's rupee hit record lows against the dollar. Those 
jitters eased later Tuesday.

   Economists say Turkey's central bank still needs to raise interest rates 
significantly to strengthen its currency. President Recep Tayyip Erdogan has 
ruled out that step.

   Hooper, of Invesco, said it's common for stocks to fall across emerging 
markets when one country is in trouble, but that reaction isn't necessarily 
justified.

   "What we're seeing in emerging markets today is a repeat of what we've seen 
crisis after crisis for the last few decades," Hooper said. "We can't treat all 
emerging markets the same way."

   She said Argentina, like Turkey, is dealing with a plunging currency and 
political turmoil. But most of Turkey's problems are specific to that country 
and other emerging markets like Mexico are likely to recover.

   Bond prices moved lower. The yield on the 10-year Treasury note rose to 2.90 
percent from 2.88 percent.

   Cigna and Express Scripts both rose after billionaire investor Carl Icahn 
said he's ending his campaign to block the deal. He had urged Cigna 
shareholders to vote against the $52 billion acquisition of Express Scripts and 
said the price was far too high.

   Health insurer Cigna added 1.9 percent to $185.30 and Express Scripts, a 
pharmacy benefits manager, picked up 2.4 percent to $86.

   Consumer credit company Synchrony Financial rose 2.8 percent to $30.01 after 
it said it extended a contract to manage credit card programs for home 
improvement retailer Lowe's. Lowe's gained 1.3 percent to $98.40.

   Benchmark U.S. crude slipped 0.2 percent to $67.04 per barrel in New York. 
Brent crude, used to price international oils, dipped 0.2 percent to $72.46 per 
barrel in London.

   Gold added 0.2 percent to $1,200.70 an ounce. Silver rose 0.5 percent to 
$15.05 an ounce. Copper fell 1.8 percent to $2.68 a pound following weak 
economic reports from China. Growth in factory output, consumer spending and 
retail sales in July were slower than expected.

   Wholesale gasoline picked up 1 percent to $2.03 a gallon. Heating oil lost 
0.4 percent to $2.13 a gallon. Natural gas rose 1 percent to $2.96 per 1,000 
cubic feet.

   The dollar rose to 111.22 yen from 110.69 yen. The euro fell to $1.1339 from 
$1.1394.

   Germany's DAX rose less than 0.1 percent. The CAC 40 in France fell 0.2 
percent and Britain's FTSE 100 lost 0.4 percent.

   Tokyo's Nikkei 225 added 2.3 percent. Hong Kong's Hang Seng declined 0.7 
percent while the Kospi in Seoul advanced 0.5 percent.


(BE)

 
 
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