NEW YORK — Wall Street is getting a little daring once again.
Investors shook off weak economic readings Thursday and placed bets on retail and technology stocks after several companies posted better- than-expected sales and profit reports. The major indexes gained more than 1 percent, including the Dow Jones industrial average, which rose 106 points.
Retailers including Wal- Mart and Macy’s turned in better-than-expected sales figures for January.
Wal-Mart’s sales beat Wall Street’s forecasts after the chain drew shoppers focused on necessities such as groceries. Macy’s, which this week said it would slash 7,000 jobs, on Thursday raised its fourth- quarter and full-year forecasts after reporting its sales.
The industry’s overall numbers were still weak as consumers again curtailed their spending, but not as bad as investors feared when they beat retail stocks down in recent months.
“We’re being overly pessimistic on things like retailers,” said Chris Cordaro, chief investment officer at RegentAtlantic Capital in Morristown, N.J. “People realize you’re going to have to shop somewhere.”
The technology-laden Nasdaq composite index led the major market indicators after Akamai Technologies said its fourth-quarter earnings rose a better-than-expected 13 percent as more customers signed up for its Internet traffic-management services.
“The economy at some point will recover, and when it does, tech is a pretty interesting play,” said Subodh Kumar, global investment strategist at Subodh Kumar & Associates in Toronto. “It will likely be one of the first movers.”
The Dow Jones industrials rose 106.41, or 1.34 percent, to 8,063.07. The Dow fell as much as 111 points early in the session.
Broader stock indicators also rose. The Standard & Poor’s 500 rose 13.62, or 1.64 percent, to 845.85, and the Nasdaq composite rose 31.19, or 2.06 percent, to 1,546.24.
Investors are bracing for today’s January employment report from the Labor Department. The monthly reading is one of the most important economic indicators because rising unemployment cuts into how much consumers spend. Consumer spending accounts for more than two-thirds of U.S. economic activity.
“There are some indications tomorrow’s unemployment report might not be as bad as expected,” said Hugh Johnson, chief investment officer of Johnson Illington Advisors in Albany, N.Y.
A poor reading could deliver a big blow to the market, though expectations are low. Economists predict the unemployment rate rose to 7.5 percent in January from 7.2 percent in December. That would be the highest rate in 17 years.
