You are using an older browser version. Please use a supported version for the best MSN experience.

Stocks close higher as Macy's rallies more than 10 percent

CNBC logo CNBC 6 days ago Fred Imbert and Sam Meredith

Stocks rose Wednesday as retail shares jumped on the back of strong quarterly earnings from retailer Macy's.

The Dow ended 62 points higher. The S&P 500 gained 0.4 percent as the consumer discretionary sector climbed. The Nasdaq advanced 0.6 percent.

Macy's shares rallied 10.8 percent on stronger-than-expected quarterly earnings. The company's same-store sales, a key metric for retailers, rose 4.2 percent last quarter versus an estimate of 1.4 percent.

The SPDR S&P Retail ETF (XRT) jumped on Macy's move and logged its best day since April 10.

Macy's CEO Jeff Gennette said Wednesday in a statement the company saw "continued healthy consumer spending," noting it contributed to the company raising its fiscal full-year guidance for earnings and revenue.

The major averages rebounded from losses in the previous session. The S&P 500 and Nasdaq dropped 0.7 percent and 0.8 percent, respectively, on Tuesday, while the Dow snapped an eight-day winning streak.

Pressuring equities Tuesday was a surge in interest rates. The benchmark 10-year note yield hit 3.095 percent Tuesday, its highest level since 2011, while the two-year note yield traded around levels not seen in a decade.

Tom Essaye, the founder of The Sevens Report, said in a note that the rise in yields coupled with a surging dollar caused "causing a natural digestion given the near-6% straight-line rally in stocks over the past two weeks."

The major indexes are up sharply this month, with the S&P 500 and Dow having gained more than 2 percent through Tuesday's close. The Nasdaq, meanwhile, was up 4 percent in that period.

Elsewhere in corporate news, Teva Pharmaceutical rose more than 3 percent after Warren Buffett's Berkshire Hathaway revealed it increased its stake in the company.


More from CNBC

image beaconimage beaconimage beacon