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* Kohl’s drops as increased sales forecasts disappoint
* Cisco falls after profit warning
* Crypto-related stocks rebound as bitcoin retraces losses
* Ralph Lauren slips because forecasts are lower than estimates
* Indexes up: Dow 0.23%, S&P 0.54%, Nasdaq 0.96% (updates to open)
By Medha Singh and Shashank Nayar
May 20 (Reuters) – Major Wall Street indices rebounded after a three-day drop on Thursday, helped by gains in tech stocks, as the smallest weekly jobless claims since the start of a pandemic recession increased risk appetite.
The Dow’s gains were held back by a 2.8% drop in shares of Cisco Systems Inc after the network gearmaker warned that supply chain issues would persist until the end of 2021 and forecast that its profit for the current quarter was lower than estimated.
Bitcoin regained lost ground to trade for nearly $ 40,000, a day after a sharp sell-off. Crypto-exchange operator Coinbase Global, miners Riot Blockchain and Marathon Digital Holdings rebounded between 2.1% and 5.2% in sympathy with the digital coin.
“Initially a lot of money was taken from speculators, but the market is starting to gain ground and find comfortable levels,” said Arthur Weise, chief investment officer of Kingsland Growth Advisors.
The number of Americans filing new unemployment benefits fell to 444,000 in the week ended May 15, down for the third time in a row, suggesting that job growth has resumed this month here, even if companies are always desperate for workers.
Major Wall Street indices fell for the third session in a row on Wednesday after minutes from the Fed’s meeting last month indicated that many policymakers believed it would be appropriate to discuss easing support in times crisis during the next meetings if the strong economic momentum continues.
However, many analysts saw the statement as old news, as economic data since then has shown an unexpected slowdown in the labor market, stoking inflation concerns.
“Unprecedented stimulus measures, supply chain imbalances and the outlook for a record and tight US labor market create great uncertainty about the outlook for inflation,” said Linda Duessel, senior strategist at Federated Hermes.
Signs of rising inflation have heightened bets that the Federal Reserve may tighten policy soon, hitting rate-sensitive growth stocks that have put the tech-savvy Nasdaq on track for its release. fifth consecutive weekly decline.
The communications technology and services sectors grew the most among the top 11 S&P sectors. Energy, finance and industry fell.
At 9:55 a.m. ET, the Dow Jones Industrial Average was up 76.83 points, or 0.23%, to 33,972.87 and the S&P 500 was up 22.25 points, or 0.54%, to 4,137 , 93. The Nasdaq Composite is up 127.52 points, or 0.96%, to 13,427.26.
Kohl’s Corp has raised its forecast for 2021 sales as the department store operator bets on a buying boom, but the outlook is lower than analysts’ estimates, pushing its shares down 10.8%.
Ralph Lauren Corp fell 7.1% after forecasting sales for the full year below analyst estimates.
Rising issues outnumbered declines by a 1.14-to-1 ratio on the NYSE and a 1.37-to-1 ratio on the Nasdaq.
The S&P Index recorded five new 52-week highs and no new lows, while the Nasdaq recorded 26 new highs and seven new lows. (Reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Maju Samuel)