NEW YORK, May 15 (Xinhua) -- U.S. stocks continued to end mixed on Thursday as investors digested retail sales and inflation data for further clues to the health of the economy.
The Dow Jones Industrial Average rose 271.69 points, or 0.65 percent, to 42,322.75. The S&P 500 added 24.35 points, or 0.41 percent, to 5,916.93, its three-day winning streak. The Nasdaq Composite Index shed 34.49 points, or 0.18 percent, to 19,112.32, snapping its six-day win streak.
Eight of the 11 primary S&P 500 sectors ended in green, with utilities and consumer staples leading the gainers by adding 2.12 percent and 2.00 percent, respectively. Meanwhile, consumer discretionary and communication services led the laggards by losing 0.68 percent and 0.42 percent, respectively.
Data released Thursday showed signs of cooling inflation. The producer price index (PPI) fell 0.5 percent in April, defying expectations for a 0.3 percent increase, according to the U.S. Bureau of Labor Statistics. Retail sales rose 0.1 percent in the United States, in line with forecasts, while industrial production slipped more than expected. Initial jobless claims in the United States were also unchanged at 229,000 for the week ending May 10, near the forecast for 226,000.
Investor optimism has grown since last weekend's talks between U.S. Treasury Secretary Scott Bessent and Chinese officials, which appeared to prevent a short-term economic slowdown and eased fears of rising inflation.
Tech giants have posted strong gains this week, and the Nasdaq remains the top performer this week. "This is a market that has shifted to cautious optimism, i.e., market sentiment has shifted toward measured optimism, as recession fears begin to recede and equity markets demonstrate underlying strength. However, a number of macro and micro risks continue to form a 'wall of worry' that investors must navigate," said Joe Cusick, senior vice president and portfolio specialist at Calamos Investments.
"The next phase will hinge on whether the current rally can broaden and sustain through the summer months, or whether it gives way to a healthy consolidation or correction," said Cusick.
In corporate news, Foot Locker surged 85.7 percent after the retailer announced a 2.4-billion-U.S.-dollar merger with Dick's Sporting Goods. Meanwhile, UnitedHealth plunged 10.93 percent after The Wall Street Journal reported that the U.S. Justice Department is conducting a probe into the insurer. Walmart on Thursday reported mixed results for its fiscal first quarter, narrowly missing revenue expectations as the retailer signaled that rising tariffs are likely to lead to higher prices for consumers.
In the bond market, U.S. Treasury yields fell in response to the weaker PPI report. The 10-year Treasury yield dropped more than 7 basis points to 4.45 percent, while the two-year yield fell eight basis points to 3.965 percent, as of 3:45 p.m. Eastern Daylight Time.
There are still plenty of headwinds hanging over U.S. equities, according to Wells Fargo. "The bottom line is that many uncertainties remain," Wells Fargo investment institute senior global market strategist Scott Wren wrote in a Wednesday note.
"The U.S. is in the early stages of trade negotiations. Given that, our guidance is to continue to lean toward higher-quality large- and mid-cap U.S. equities," he said. "In fixed income, we favor exposure to investment-grade corporates and essential-service municipal bonds in the three-to-seven-year maturity range." ■
