MARKET SNAPSHOT: U.S. Stocks Push Higher; Biotechs Rally

By Anora Mahmudova and Carla Mozee, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market closed with modest gains on Wednesday, led by advances in the health-care and technology sectors.

The main benchmarks gained in the three of the past four sessions, bouncing off the lows reached last week.

Gains on the Nasdaq Composite were led by biotechnology companies, with the iShares Nasdaq Biotechnology ETF (IBB) up 2.2%. The Nasdaq Composite (RIXF) added 44.87 points, or 1%, to 4,434.13.

The Dow Jones Industrial Average (DJI) added 91.26 points, or 0.6%, to 16,651.80.

The S&P 500 (SPX) climbed 12.97 points, or 0.7%, to 1,946.72. Vertex Pharmaceuticals Inc.(VRTX) led gainers.

Even consumer plays nudged higher, despite softer-than-expected retail sales data as well as disappointing quarterly results from retailers such as Macy's Inc. and Fossil Group Inc.

Michael Arone, managing director at State Street Global Advisors, said the day's economic data were positive enough to indicate that consumers are still spending, but not strong enough for the Federal Reserve raise rates sooner than currently anticipated.

Looking more broadly at the markets and the S&P 500's recent drop of nearly 4% from its peak, Arone said pullbacks historically have tended to be shorter and shallower when price-to-earnings ratios are rising.

"Benign inflation and a stronger dollar mean that the U.S. economy and company earnings will continue to grow. This is a positive environment for the stock markets," he added.

Sales at U.S. retailers were unchanged in July, the weakest result in six months, as sales fell at auto dealers, but rose at gas stations and food and beverage stores, according to government data released Wednesday. Separately, business inventories rose in June by more than expected.

Individual stocks

Amazon.com Inc.(AMZN) climbed as the company launched a new mobile payment service using a smartphone or tablet that is aimed at a market dominated by privately held Square. Also read: For retailers, Amazon is sexier than eBay

Shares of Macy's Inc. (M) fell following a disappointing outlook and second-quarter sales that fell short of estimates.

Shares of SeaWorld Entertainment Inc. (SEAS) plunged after the theme-park operator reported second-quarter results fell short and the company cut its full-year sales outlook.

King Digital Entertainment (KING) sank after disappointing quarterly results from the "Candy Crush" triggered a wave of ratings downgrades from analysts. (Read more about the day's notable movers here: http://www.marketwatch.com/story/king-macys-among-stocks-to-watch-wednesday-2014-08-13.)

Networking-gear maker Cisco Systems (CSCO) will release results after the close of Wednesday's trading session.

Elsewhere, the yields on the 10-year U.S. Treasurys (10_YEAR) fell 33 basis points to 2.4% after weaker-than-expected retail sales data reinforced speculation that the Federal Reserve won't rush to raise rates. Oil futures (CLU4) were little changed, while gold futures (GCZ4) rose.

Asian markets overnight closed higher, with Hong Kong's Hang Seng climbing 0.8%. In the U.K., the pound (GBPUSD) dropped sharply against the U.S. dollar as prospects dimmed for an interest-rate hike before the end of the year.

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