After a tumultuous week of trading where the Dow Jones Industrial Average shed over 1,000 points, U.S. equities bounced back in the morning session as investors gobbled up cheap stocks.
Retail shares in particular saw a bump in trading prices, but as the morning progressed the momentum slowed.
The Dow gained 81 points, or 0.5 percent, to 16,425 while the S&P 500 rose 0.4 percent to 1,929. The S&P Retailing Industry Group Index gained 0.9 percent to 1,208.
Macy’s Inc. was up 4.5 percent to $37.50 midmorning as investors pondered activist investment firm Starboard Value pressure on the retailer to cut expenses. Kohl’s Corp. was also driving up the retail sector on reports that it was weighing going private. Its shares gained 2.6 percent to $49.12. The Bon-Ton Stores Inc. was another notable gainer with a 4 percent increase to $1.82.
On the declining side was Iconix Brand Group with an 8.6 percent drop to $4.91 and Ascena Retail Group with a 3.9 percent drop to $10.08.
Major indices in Europe were trading slightly up while stocks in Asia all closed deep in the red with the Nikkei 225 in Japan down 0.4 percent to 17,698 and the Hang Seng in Hong Kong off 2.8 percent to 19,889 and China’s Shanghai Index off 5.3 percent to 3,017.