- Macy's shares rallied 10.8 percent on stronger-than-expected quarterly earnings.
- The retailer's surge boosted the broader retail sector. The SPDR S&P Retail ETF (XRT) jumped 1.6 percent on Macy's move, its biggest one-day move since April 10.
Stocks rose on Wednesday as retail shares jumped on the back of strong quarterly earnings from retailer Macy's.
The Dow Jones industrial average closed 62.52 points higher at 24,768.93, with Nike as the best-performing stock in the index. The gained 0.4 percent to 2,722.46 as the consumer discretionary sector climbed 0.8 percent. The Nasdaq composite advanced 0.6 percent to 7,398.30. The small-cap Russell 2000 index, meanwhile, climbed 1 percent and posted a record close.
Macy's shares rallied 10.8 percent on stronger-than-expected quarterly earnings. The company's same-store sales, a key metric for retailers, rose 4.2 percent last quarter versus an estimate of 1.4 percent.
The retailer's surge boosted the broader retail sector. The SPDR S&P Retail ETF (XRT) jumped 1.6 percent on Macy's move, its best day since April 10.
Macy's CEO Jeff Gennette said Wednesday in a statement the company saw "continued healthy consumer spending," noting it contributed to the company raising its fiscal full-year guidance for earnings and revenue.
The major averages rebounded from losses seen in the previous session. The S&P 500 and Nasdaq dropped 0.7 percent and 0.8 percent, respectively, on Tuesday, while the Dow snapped an eight-day winning streak.
Pressuring equities on Tuesday was a surge in interest rates. The benchmark 10-year note yield hit 3.095 percent on Tuesday, its highest level since 2011, while the two-year note yield traded around levels not seen in a decade.
Tom Essaye, founder of The Sevens Report, said in a note that the rise in yields coupled with a surging dollar caused "causing a natural digestion given the near-6% straight-line rally in stocks over the past two weeks."
The major indexes are up sharply this month, with the S&P 500 and Dow having gained more than 2 percent through Tuesday's close. The Nasdaq, meanwhile, was up 4 percent in that period.
Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said the market's bias remains flat-to-higher, but it will be a choppier ride for investors as inflationary pressures have become "more prevalent."
Elsewhere in corporate news, Teva Pharmaceutical rose nearly 3 percent after Warren Buffett's Berkshire Hathaway revealed it increased its stake in the company.