- Associated Press - Wednesday, November 13, 2013

NEW YORK (AP) — The stock market got a boost from Macy’s on Wednesday, pushing the Standard & Poor’s 500 index back into record territory.

Macy’s fueled a surge in retailing stocks after reporting a quarterly profit that handily beat Wall Street’s expectations. Bed, Bath & Beyond, J.C. Penney and Nordstrom also advanced on optimism for a strong holiday shopping season.

The shopping season is a make-or-break time for retailers because it can account for as much as 40 percent of annual revenue. It also gives analysts and investors a reading on the outlook for consumer spending, a crucial component of the U.S. economy.


SEE ALSO: Macy’s is upbeat about holiday shopping season


“When the consumer starts spending, it’s pretty much a rising tide,” said Ron Florance, deputy chief investment officer for Wells Fargo Private Bank. “That gives a big lift across the board.”

The S&P 500 was up eight points, or 0.5 percent, to 1,775, as of 2:10 p.m. EDT. The index climbed as high as 1,776, putting it a point above its previous all-time trading high set on Oct. 30.

The Dow Jones industrial average gained 15 points, or 0.1 percent, to 15,765. The Nasdaq composite advanced 28 points, or 0.7 percent, to 3,948.

Macy’s jumped $4.35, or 9.3 percent, to $49.95. Its earnings climbed 22 percent for the quarter ended Nov. 2.

The department store chain, which rose the most in the S&P 500 index, was the first major retailer to report earnings.

Stocks started the day lower as investors weighed signs of an improving economy against the prospect of the Federal Reserve reducing its economic stimulus.

The Fed is buying $85 billion of bonds a month to keep interest rates low and support the economy. That program has helped drive a rally in stocks this year and has pushed indexes to record highs. Surprisingly strong reports on economic growth and hiring last week have led investors to speculate that the Fed may pare back its stimulus sooner than expected.

“We’re in a pause as everyone waits for more data,” said Kate Warne, a strategist at investment adviser Edward Jones.

Investors will follow closely Thursday’s confirmation hearing for Janet Yellen, who has been nominated to succeed Fed Chairman Ben S. Bernanke, for clues about when the Fed may begin to pull back its economic stimulus.

Chegg, an online textbook rental company, flopped in its stock market debut. Clothing maker Perry Ellis plunged after cutting its revenue forecast because of weak sales.

In government bond trading, the yield on the 10-year Treasury note fell to 2.72 percent from 2.77 percent Tuesday.

About 90 percent of companies in the S&P 500 have reported third-quarter results, and earnings are projected to rise by 5.6 percent in the July-to-September period, according to S&P Capital IQ data. That’s better than the 4.9 percent growth recorded in the second quarter and better than the 2.4 percent growth in the similar period a year earlier.

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