US STOCKS-Wall St opens higher as tech stocks bounce back


Reuters

* Fed's Dudley says tight labor market should push inflation
up
    * Retail stocks give up premarket gains to trade lower
    * Dow hits another record high
    * Indexes up: Dow 0.35 pct, S&P 0.46 pct, Nasdaq 0.96 pct

 (Updates to open)
    By Tanya AgrawalJune 19 (Reuters) - U.S. stocks opened higher on Monday,
with the Dow Jones Industrial Average hitting a record high, as
investors snapped up beaten down technology stocks.
    The S&P technology sector <.SPLRCT> is coming off its second
straight weekly decline, triggered by fears of stretched
valuations and investors moving money to other sectors. Tech
stocks have led the S&P 500's rally this year.
    Leading the rebound, Apple <AAPL.O>, Microsoft <MSFT.O> and
Alphabet <GOOGL.O> were all up about 1.2 percent.
    Apple provided the biggest boost to the three major sectors.
The tech sector's 1.25 percent rise led the gainers on the S&P
500.
    Consumer staples stocks, which were battered on Friday after
Amazon.com's <AMZN.O> $13.7 billion deal to buy upscale grocer
Whole Foods <WFM.N>, added to their losses in early trading.
[nL3N1JD3Z4]
    The deal by Amazon, a proven retail disruptor, marked a
major step by the internet retailer into the brick-and-mortar
retail sector.
    Wal-Mart <WMT.N>, Target <TGT.N> and Costco <COST.O>
reversed premarket gains to trade lower.
    At 9:43 a.m. ET (1143 GMT), the Dow Jones Industrial Average
<.DJI> was up 75.35 points, or 0.35 percent, at 21,459.63, the
S&P 500 <.SPX> was up 11.35 points, or 0.46 percent, at
2,444.50. The Nasdaq Composite <.IXIC> was up 58.87 points, or
0.96 percent, at 6,210.63.
    New York Fed President William Dudley, a close ally of Fed
Chair Janet Yellen, said U.S. inflation was a bit low but should
rise alongside wages as the labor market continues to improve,
allowing the Federal Reserve to continue gradually tightening
U.S. monetary policy. [nN9N1GG012]
    Yellen's confidence as her team raised interest rates for
the third time in six months last week surprised investors who
had expected more caution about the economy following a batch of
weak U.S. economic data.
    "We suspect, an upholding of least one more rate hike will
likely be supported," said aid Peter Cardillo, chief market
economist at First Standard Financial in New York.
    Last month, the U.S. economy added 138,000 jobs, well below
the expected gain of 185,000, while other data showed a fall in
retail sales and inflation below the Fed's target of 2 percent.
    Oil prices edged higher, after coming under pressure over
the past month from rising production. [O/R]
    Advancing issues outnumbered decliners on the NYSE by 1,717
to 870. On the Nasdaq, 1,740 issues rose and 660 fell.
    The S&P 500 index showed 49 new 52-week highs and 10 new
lows, while the Nasdaq recorded 99 new highs and 87 new lows.

 (Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)
 ((tanya.agrawal@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 1130; Reuters Messaging:
tanya.agrawal.thomsonreuters.com@reuters.net))

Keywords: USA STOCKS/ (UPDATE 2)



This article appears in: World Markets , US Markets , Stocks
Referenced Symbols: AAPL , AMZN , COST , DJI , GOOGL


More from Reuters

Subscribe






See headlines for AAPL

Follow on:








Research Brokers before you trade

Want to trade FX?