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* Target , Lowe's jump after better-than-expected results
* Banks rise as U.S. Treasury yields tick higher
* Minutes from Fed's July meeting due at 2:00 p.m. ET
* Toll Brothers slips after posting decline in orders
* Indexes up: Dow 0.88%, S&P 0.74%, Nasdaq 0.89%
(Changes comment, adds details; Updates prices)
By Medha Singh
Aug 21 (Reuters) - U.S. stocks advanced on Wednesday
following upbeat earnings from retailers Lowe's and Target that
reinforced confidence in consumer demand, while investors
awaited the release of the Fed minutes for further clues on the
path of future rate cuts.
The reports come on the heels of solid Walmart (NYSE:WMT) Inc WMT.N
earnings and retail sales data last week that allayed fears of a
U.S. recession.
Big-box retailer Target Corp (NYSE:TGT) TGT.N surged 18.2%, the most
on the S&P 500 index, after it beat quarterly profit estimates
and raised its annual earnings forecast. Home improvement chain Lowe's Cos Inc LOW.N rose 10.4% as
it joined bigger rival Home Depot Inc (NYSE:HD) HD.N in beating profit
estimates. Together their shares helped the retail index .SPXRT rise
1.94% and consumer discretionary sector .SPLRCD 1.47%, the
most among the major S&P sectors.
"Investors are counting on the strength of consumer
spending," said Rick Meckler, partner at Cherry Lane
Investments, a family investment office in New Vernon, New
Jersey.
"When they see good earnings in the sector, it gives them
some confidence, particularly when there is a lot of concern
about non-internet retailers."
Adding to the upbeat sentiment, Bank of America Corp (NYSE:BAC) BAC.N
Chief Executive Officer Brian Moynihan played down fears of a
potential U.S. recession and said strong consumer spending could
keep the economy growing. The highlight of the day will be the release of the minutes
from the Federal Reserve's July meeting, when it cut interest
rates for the first time in more than a decade. The minutes are
due to be released at 2 p.m. ET.
As U.S.-China trade tensions took a turn for the worse since
the Fed's move last month and adding to economic risks,
investors will closely monitor comments from Chair Jerome Powell
on Friday at the Jackson Hole Symposium for clues on what more
the central bank plans to do to boost growth.
Meckler expects to see a dovish tone in Powell's speech,
"not so much because the U.S. is having economic problems but
its a recognition of the fact that the rest of the world is
having an economic slowdown."
At 11:02 a.m. ET, Dow e-minis 1YMcv1 were up 254 points,
or 0.98%. S&P 500 e-minis EScv1 were up 24.5 points, or 0.85%
and Nasdaq 100 e-minis NQcv1 were up 76.25 points, or 0.99%.
Yields in U.S. Treasuries bonds ticked higher, a day after
their fall pressured Wall Street and paused a strong rebound
from last week's selloff on recession fears.
The defensive utilities .SPLRCU , consumer staples
.SPLRCS and real estate .SPLRCR sector posted the smallest
gains, reflecting investors' appetite for risk.
Toll Brothers Inc TOL.N slipped 3.4% after the luxury
homebuilder posted a decline in orders, hinting at weaker demand
for new homes. Advancing issues outnumbered decliners by a 3.10-to-1 ratio
on the NYSE and by a 2.27-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and three new
lows, while the Nasdaq recorded 42 new highs and 38 new lows.