Bullish trading at Wall Street

US stocks finished a bumpy week on a high note as technology and small-cap equities shook off the blues from recent weeks and led the overall market higher. The broad-based S&P 500 closed the week on an especially dramatic note, breaching 1,900 for the first time at 1,900.53. The index gained 22.67 points (1.21 per cent) for the week that ended on Friday. The Dow Jones Industrial Average advanced 114.96 (0.70 per cent) to 16,606.27, while the tech-rich Nasdaq Composite Index rose 95.22 (2.33 per cent) to 4,185.81. Analysts were particularly heartened at the week’s gains for the Nasdaq and the small-cap Russell 2000, which rose 2.1 per cent. Weakness in both of these indices has weighed on sentiment over the last month or so. However, Michael James, managing director of equity trading at Wedbush Securities, noted that trading volumes were extremely light all week ahead of the long holiday weekend. The markets will be closed on Monday in observance of Memorial Day. On Tuesday, all three indices slumped in part due to comments from Charles Plosser, president of the Federal Reserve Bank of Philadelphia, who said a strengthening US economic recovery could require the central bank to raise interest rates ‘sooner rather than later.’ But on Wednesday, stocks made up for all Tuesday’s losses and then some after the Federal Open Market Committee’s April policy meeting minutes suggested an earlier-than-expected increase in the federal funds rate was not in the wind. The Fed is expected to lift its near-zero rate in mid-2015. Home-improvement retailers like Dow member Home Depot and Lowe’s impressed with bullish commentary on rising demand for their goods, rising 2.4 per cent and 3.7 per cent, respectively. Williams-Sonoma, which sells home appliances at its namesake stores and furniture at its Pottery Barn chain, also did well, rising 6.1 per cent. Dick’s Sporting Goods finished 16.5 per cent lower after slashing its full-year profit forecast from $3.03-$3.08 per share to $2.70-$2.85 due to extremely weak sales for golf and hunting equipment and apparel. Other retailers suffering losses after earnings reports included PetSmart, Staples, Urban Outfitters and TJX Companies, according to AFP.