Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 28, 2016. REUTERS/Brendan McDermid
NEW YORK: US department store chain Macy’s and Chinese e-commerce behemoth Alibaba surged in early trade Thursday, lifting US stocks.
Macy’s rose 14.2% after announcing plans to shut 100 of its 728 stores and bolster investment in online shopping as it reported a sharp drop in second-quarter profits.
Alibaba gained 4.8% after reporting a 59% increase in revenue to 32.15 billion yuan (RM19.4bil) in the first quarter. The results showed the benefits of expanding outside the company’s core e-commerce business, in sectors ranging from sports to entertainment. (For story, click here)
Yahoo, which holds a large stake in Alibaba, rose 3.4%.
About 30 minutes into trade, the Dow Jones Industrial Average stood at 18,557.98, up 0.3%.
The broad-based S & P 500 rose 0.2% to 2,180.65, while the tech-rich Nasdaq Composite Index advanced 0.3% to 5,222.22.
Stocks were broadly higher, lifting many sectors. Apple rose 0.5%, Caterpillar 0.7% and Goldman Sachs 0.9%.
Another large retailer, Kohl’s, jumped 14.2% after reporting earnings that translated into US$1.22 per share when one-time costs were excluded. That was above the US$1.03 projected by analysts.
Other retailers seeing gains included Nordstrom, up 6.4%, Bed Bath & Beyond, up 2.6% and Williams-Sonoma, up 1.2%.
Valeant Pharmaceuticals International plunged 7.8% following a Wall Street Journal report that said the Justice Department could criminally charge the drugmaker over its ties to the now-defunct mail-order pharmacy Philidor. - AFP
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