Stocks Rise Despite Warnings on Economy

Most US stocks drifted higher Thursday following a mixed set of reports on the US economy.

• The S&P 500 rose 24.35 points, or 0.4%, to 5,916.93, enough to extend its winning streak to a fourth day and to pull within 3.7% of its record.
• The Dow Jones Industrial Average rose 271.69 points, or 0.6%, to 42,322.75.
• The Nasdaq composite fell 34.49 points, or 0.2%, to 19,112.32.

Stocks got a lift from easing Treasury yields in the bond market. They dropped after reports suggested the Federal Reserve may have more room to cut interest rates later this year if the US economy weakens under the weight of President Trump's tariffs, the AP reports. Oil prices also sank.

Walmart fell 0.5% even though it reported a bigger profit for the latest quarter than analysts expected. The company, which warned that tariffs would lead to higher prices this month, said it decided not to offer a forecast for how much profit it will make in the current quarter. Equipment maker Deere also said it's seeing "near-term market challenges," but its stock rose 3.9% after it reported a stronger profit for the latest quarter than analysts expected. Cisco Systems was another winner and jumped 4.9% after the tech giant likewise topped expectations for profit.

Elsewhere on Wall Street, Dick's Sporting Goods tumbled 14.6% after it said it would buy the struggling Foot Locker chain for $2.4 billion. Dick's also said that it made a better profit for the latest quarter than analysts expected. Foot Locker soared 85.7% after coming into the day with a loss of nearly 41% for the year so far.

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Treaury yields fell following the economic reports, with the headliners saying shoppers spent less at US retailers last month than expected, while inflation was better at the wholesale level than economists expected. Other updates said US manufacturing looks like it's still contracting but fewer US workers are applying for unemployment benefits than expected. The reports did little to spell out whether the economy is falling toward a recession, as many investors had been fearing, or shaking off the uncertainty after Trump called off many of his tariffs temporarily.

(More stock market stories.)