U.S. stocks rallied for the second day as the fastest American retail sales growth in four years bolstered optimism that consumer spending is weathering a drop in confidence. State Street (NYSE:STT), the third-largest U.S. custody bank, rallied 8.7 percent after saying it swung to a second-quarter profit. Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) also climbed. “There’s not a lot of selling pressure and there’s not a lot of buying pressure either,” said Mark Bronzo, an Irvington, New York-based fund manager at Security Global Investors, which oversees $23 billion. “The market got killed and seems oversold. Many people are expecting second-quarter numbers to be good. However, there are lots of doubts about guidance especially in light of the most recent economic data points.” -Bloomberg
Discount retailer Family Dollar Stores (NYSE:FDO) said profit in the third quarter of fiscal 2010 rose 19% from a year earlier. Net income was $104.4 million, or 77 cents per diluted share, for the quarter. Sales for the quarter gained 8.4% to $1.997 billion, with comparable store sales rising 7%, the company said in a statement. The value of the average transaction at the company’s stores was flat. "We continue to deliver greater value for our customers," CEO Howard R Levine said. "Our revenue growth has accelerated nicely, and I am pleased to report our ninth consecutive quarter of double-digit earnings per share growth.” –Daily Finance
China’s foreign exchange regulator said Wednesday that its reserves are managed according to market principles, and that concerns it’s mulling dumping its U.S. debt holdings are unfounded. The State Administration of Foreign Exchange said in a statement Wednesday that it adopts "a go with the flow" attitude in the management of its foreign exchange reserves and that potential changes in its holdings of U.S. debt reflect shifting market conditions and are not intended to send political messages. U.S. government debt is attractive because it’s the largest sovereign market on Earth, offers low transaction costs, and provides "good security", the agency, known as SAFE, said in a prepared statement. –MarketWatch
Gold futures fell slightly after two reports indicated that some of the market’s biggest players continued to favor other assets rather than expand their holdings in gold, lessening the yellow metal’s allure as a safe-haven investment. The most actively traded contract for August delivery was down $1.70, at $1,193.40 an ounce on the Comex division of the New York Mercantile Exchange. –The Wall Street Journal
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