US: Stocks advance amid strong earnings from retailers

[NEW YORK] Stocks climbed after another batch of strong corporate earnings and speculation central banks will refrain from rushing into rate hikes. Treasuries retreated.

Equities gained even as data showed a smaller-than-forecast drop in US jobless claims. Retailers Macy's and Kohl's rallied after boosting their full-year outlooks, signalling that consumer demand remains robust ahead of the holiday season. Nvidia, the world's largest chipmaker by market value, climbed as an expansion into data-centre semiconductors helped bolster its sales projection.

"US equity markets remain in record-high territory as strong consumer demand continues to offset supply side constraints and inflation concerns," said Craig Johnson, technical market strategist at Piper Sandler. "Monetary policy remains accommodative and despite the recent uptick in volatility, interest rates remain historically low. The technical setup remains bullish."

JPMorgan Chase economists said they now expect the Federal Reserve to raise interest rates next September, becoming the latest on Wall Street to jettison a forecast for the central bank to stay on hold till 2022. Goldman Sachs Group analysts said last month they expect a Fed hike in July. Their counterparts at Morgan Stanley still see officials not shifting rates throughout next year.

Cisco Systems, the biggest maker of computer networking equipment, gave a lacklustre revenue forecast for the current period, hurt by a shortage of components that is making it difficult to keep up with demand.

Alibaba Group Holdings' outlook for fiscal 2022 revenue fell short of estimates after intensifying competition and new coronavirus outbreaks compounded regulatory headwinds for China's top e-commerce firm.

The S&P 500 rose 0.2 per cent as at 9.30 am New York time. The Nasdaq 100 rose 0.5 per cent. The Dow Jones Industrial Average was little changed. The Stoxx Europe 600 fell 0.2 per cent while the MSCI World index was little changed.

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