Wall Street backed off early-session gains, as the currency market gave in to some profit-taking, lifting the dollar off a 15-month low, and blunting some of the sense of easy money that’s been at the heart of equities’ march to highs for the year.
Market averages remained narrowly in the black with about a half hour to go in the trading session. But the retreat from the highs meant that one market measure – the S&P 500 Index (GSPC)?-?may have failed?at yet another attempt to get over a key milestone. The index crept over the 1100-point mark – its high for the session registered 1105 – intraday before falling back. The index made a previous run at the 1100-point mark?last month, but?couldn’t close over that level. The market found itself subsequently subject to a modest correction that took about 6% off the highs of last month before a recent recovery.
The session started out affirmatively for the bulls, after?several Federal Reserve officials?indicated that the central bank has no intention of raising interest rates anytime soon, despite the fallout that its monetary policy?has subject the U.S. currency to. The dollar had declined?to 15-month lows in overnight trading, but has recorded a modest improvement?during the session. Mostly, the change seemed to be the result of currency investors booking some profits from higher-yielding securities.
Economic weakness has been an element in the session’s intraday reversal,?as investors evidence some hesitation about the retailing sector’s prospects for recovery. Shares of Macy’s (M)?retreated 8% on the day, after?a disappointing profit forecast from the department store operator.?This week marks something of the high-water point for the third-quarter earnings statements from the retailing group.
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