US STOCKS-Wall St gains on Macy's boost, Russell 2000 hits record

Reuters

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    * Macy's hits yr-high after results, lifts other retailers
    * Micron, AMD rise after brokerage actions
    * 3M slips, weighs on Dow, after brokerage downgrade
    * 10-yr Treasury yields hold near 7-yr peak
    * Indexes up: Dow 0.30 pct, S&P 0.52 pct, Nasdaq 0.75 pct

 (Updates to early afternoon)
    By Medha Singh
    May 16 (Reuters) - Wall Street rose on Wednesday, with the
small cap Russell 2000 index  .RUT  hitting a record, as Macy's
strong results lit up the retail sector and Micron led gains in
the technology sector.
    Macy's  M.N  shares surged 10.5 percent, hitting a 52-week
high, after the department store operator reported strong
results and raised its profit forecast.  urn:newsml:reuters.com:*:nL3N1SN55P
    The report help boost the consumer discretionary sector
 .SPLRCD , which rose 0.92 percent, while the consumer staples
index  .SPLRCS  gained 0.72 percent.
    Walmart  WMT.N  and Nike  NKE.N , both components of the Dow
Jones Industrial Average, and Target  TGT.N  were up between 1.4
and 3.2 percent.
    "You had pretty solid numbers from Macy's and it has been an
early trigger for outperformance in the retail space today,"
said Michael James, managing director of institutional equity
trading at Wedbush Securities in Los Angeles.
    Macy's results come a day after strong April retail sales
data showed consumer spending was picking up, stoking inflation
worries and sending U.S. government bond yields higher.
    Yields on the U.S. 10-year Treasury notes  US10YT=RR  were
holding at seven-year highs on Wednesday, raising concerns of
faster interest rate hikes this year.  US/ 
    "Higher rates are going to present headwind to equity
markets. Even with strong economic data, strong earnings, the
markets are still flat year to date," said James.
    "The question remains what multiples are people willing to
pay for equities in this higher rate environment."
    At 13:01 a.m. EDT the Dow Jones Industrial Average  .DJI 
was up 74.22 points, or 0.30 percent, at 24,780.63, the S&P 500
 .SPX  was up 14.08 points, or 0.52 percent, at 2,725.53 and the
Nasdaq Composite  .IXIC  was up 55.29 points, or 0.75 percent,
at 7,406.92.
    Nine of the 11 major S&P sectors were higher, with only the
rate-sensitive utilities  .SPLRCU  and real estate  .SPLRCR 
sectors in the red.
    The technology index  .SPLRCT  was up 0.5 percent, with
chipmakers the biggest gainers.
    Micron  MU.O  jumped 4.4 percent after RBC Capital Markets
rated the stock "outperform," while AMD  AMD.O  gained 3.2
percent on a Susquehanna upgrade to "neutral".
    The two stocks helped the Philadelphia SE semiconductor
index  .SOX  gain 1.24 percent.
    Among the laggards was 3M Co  MMM.N , which slipped  1
percent and weighed on the Dow after Jefferies cut its rating on
the stock to "hold".
    IQVIA  IQV.N  dropped 4.4 percent, the most on the S&P,
after the FDA found some inaccuracies on sales data regarding
some opioid drug products.  urn:newsml:reuters.com:*:nL3N1SN5ES
    Advancing issues outnumbered decliners by a 2.06-to-1 ratio
on the NYSE and by a 2.53-to-1 ratio on the Nasdaq.
    The S&P index recorded 13 new 52-week highs and three new
lows, while the Nasdaq recorded 108 new highs and 39 new lows.

 (Reporting by Medha Singh in Bengaluru; Editing by Anil
D'Silva)
 ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,
outside U.S. +91 80 6749 1130; Reuters Messaging:
medha.singh.thomsonreuters.com@reuters.net))

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