S&P 500 rises after strong retail data, Home Depot leads Dow up | Market talk

0
20


The S&P 500 rose after Retail data Strong, Home Depot led the Dow Jones index to the upside.

US stocks rose on Tuesday, November 16th after a strong October retail sales report and better-than-expected third-quarter results from Home Depot and Walmart indicated that the US consumer is still spending more even in the face of rising prices.

The Dow Jones Industrial Average added 57.34 points, equivalent to 0.1%, to close at 36,144.79 points, the S&P 500 index rose by 0.39%, to close at 4701.16 levels, and the Nasdaq Composite Index rose by 0.7%, to close at 15973.86.

The Dow Jones is 1.4% away from its historic high while the S&P and Nasdaq are only 1% away from their historic highs.

Home Depot was the biggest gainer in the Dow so far, jumping 5.7% after results beat estimates, and net sales jumped 9.8% in the fourth quarter.

In another sign of consumer strength, Walmart reported third-quarter earnings and revenue well above estimates, store sales jumped 9.2% excluding fuel, and digital sales growth of just 8%, compared to expectations of 20.5%, but the company’s stock fell nearly 2.5% was the biggest loser in the Dow Jones Index.

Mike Lowingart of E-Trade said: “With a strong retail sales reading and a solid headline in retail earnings, it is quite clear that inflation is not standing in the way for consumers, despite some labor market hiccups and inflation fronts, this could be a vote of confidence that Investors need to point out that Economy Still progressing well, as we head into the holiday shopping season, the question remains whether the better-than-expected numbers from retailers from the third quarter can continue to close into 2021.”

Retail giant Lowe’s shares rose 4.5% while Target shares rose 1.3%, and both companies are scheduled to report quarterly results Wednesday before the bell.

Tesla shares rose 3%, recovering all of their losses from Monday, after CEO Elon Musk sold nearly $7 billion of Tesla shares last week.





LEAVE A REPLY

Please enter your comment!
Please enter your name here