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* Nordstrom jumps after profit beat
* ECB eyes stimulus package as growth looks weaker
* Indexes up: Dow 0.50%, S&P 0.32%, Nasdaq 0.23%
(Updates to open)
By Akanksha Rana
Aug 22 (Reuters) - U.S. stocks rose broadly on Thursday as
strong results from retailers bolstered confidence in consumer
demand, while investors look ahead to Federal Reserve Chief
Jerome Powell's speech for more clues on future interest rate
moves.
Stocks pared slight gains after data showed U.S.
manufacturing industries recorded their first month of
contraction in almost a decade over concerns about the
U.S.-China trade conflict. Leading gains on the S&P 500 was Nordstrom Inc (NYSE:JWN) JWN.N , up
9.6%, as it joined Target Corp (NYSE:TGT) TGT.N and Lowe's Cos Inc
LOW.N in delivering a quarterly profit beat.
Last week retail giant Walmart (NYSE:WMT) Inc WMT.N issued a strong
quarterly report, while solid retail sales numbers dispelled
fears over a U.S. recession. The retailing index .SPXRT gained 0.36% while the consumer
discretionary sector .SPRLCD climbed 0.34%.
"There is an ongoing feeling that U.S. consumer names are
robust and that's important to an economy that is slowing," said
Art Hogan, chief market strategist at National Securities in New
York.
The release of the minutes from the U.S. central bank's
meeting on July 30-31 offered little clarity on the Fed's next
move. The policymakers were deeply divided over their
quarter-point cut in rates, but united in wanting to signal the
move was not on a preset path to further cuts. While traders are sticking to bets that the Fed will cut
rates again in September, Powell's speech at an annual gathering
in Jackson Hole on Friday may prove crucial to short-term
sentiment. MMT/
"The propensity for (Powell) to disappoint investors is out
there but he will likely use Jackson Hole to suggest that the
Fed is ready to cut (rates)," Hogan said.
At 9:47 a.m. ET, the Dow Jones Industrial Average .DJI was
up 131.52 points, or 0.50%, at 26,334.25, the S&P 500 .SPX was
up 9.37 points, or 0.32%, at 2,933.80. The Nasdaq Composite
.IXIC was up 18.37 points, or 0.23%, at 8,038.57.
All the S&P sectors were higher with a 0.64% gain in
financials .SPSY providing the biggest boost to the benchmark
index. The interest-rate sensitive bank stocks gained as the
benchmark U.S. Treasury yields edged higher. US/
Despite coming back from last week's bruising selloff,
markets are still on course to end the month lower, mainly due
to concerns over the U.S.-China trade war and its impact on
growth.
The ongoing tariff war and fears of recession have prompted
China and Germany to consider stimulus, with minutes from
European Central Bank's last policy meeting signaling more
easing as soon as September. L Brands Inc (NYSE:LB) LB.N slid 11.1% after the Victoria's Secret
owner reported quarterly sales that fell short of estimates.
Advancing issues outnumbered decliners for a 2.13-to-1 ratio
on the NYSE and a 1.52-to-1 ratio on the Nasdaq.
The S&P index recorded 30 new 52-week highs and one new low,
while the Nasdaq recorded 34 new highs and 19 new lows.