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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
* Indexes up: Dow 0.96%, S&P 0.89%, Nasdaq 1.04%
(Updates to open)
By Medha Singh
Aug 21 (Reuters) - U.S. stocks rose broadly on Wednesday
following upbeat retail earnings from Lowe's and Target, while
investors awaited release of the Fed minutes for further clues
on the path of future rate cuts.
Big-box retailer Target Corp (NYSE:TGT) TGT.N surged 16.3%, the most
on the S&P 500 index, after it beat quarterly profit estimates
and raised its annual earnings forecast. Following closely behind with a 11.4% jump were shares of
home improvement chain Lowe's Cos Inc LOW.N 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
1.91% and consumer discretionary sector .SPLRCD 1.48%, the
most among the major S&P sectors.
The centerpiece for 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.
"A significant rally will be difficult until traders have
clarity on the Fed's policy path," Edward Moya, senior market
analyst, at OANDA said.
"Today's release of the FOMC minutes could show how the
risks related to global trade could warrant further rate cuts,
but traders will likely pay more attention to Fed Chair Powell's
speech on Friday."
U.S.-China trade tensions have taken a turn for the worse
since the Fed's move last month, adding to economic risks and
putting in focus comments from major central bankers like Jerome
Powell and Europe's Mario Draghi at the Jackson Hole symposium.
Powell's remarks on Friday will be scrutinized for clues on
what more policymakers are planning to boost growth.
"I think there is an expectation that there will be a dovish
tone but I am not sure if he (Powell) is going to offer that,"
said Randy Frederick, vice president of trading and derivatives
for Charles Schwab (NYSE:SCHW) in Austin, Texas.
Signs that major economies are considering measures to boost
growth helped markets rebound from a 3% drop last Wednesday,
when the U.S. yield curve inverted and triggered fears of a
recession.
Bank of America Corp (NYSE:BAC) BAC.N Chief Executive Officer Brian
Moynihan on Wednesday played down fears of a potential U.S.
recession, saying strong consumer spending could keep the
economy growing. At 9:55 a.m. ET, the Dow Jones Industrial Average .DJI was
up 250.09 points, or 0.96%, at 26,212.53, the S&P 500 .SPX was
up 25.89 points, or 0.89%, at 2,926.40. The Nasdaq Composite
.IXIC was up 82.88 points, or 1.04%, at 8,031.44.
Trade tensions simmered in the background as President
Donald Trump said on Tuesday he had to confront China over trade
even if it caused short-term harm to the U.S. economy.
Advancing issues outnumbered decliners for a 4.34-to-1 ratio
on the NYSE and a 2.81-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and two new
lows, while the Nasdaq recorded 27 new highs and 19 new lows.