Dow, S&P, Nasdaq rally after solid retail sales, factory data
Walmart cut its full-year profit outlook due to inflation headwinds
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US 'heading to a mild recession': Investment expert
Potomac Wealth Advisors President Mark Avallone argues a recession is 'more than likely,' but the focus should be on 'the depth' as a mild one 'could be very manageable.'
U.S. stocks jumped Tuesday as investors digested a round of fresh retail earnings and economic data along with comments from Federal Reserve Chairman Jerome Powell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44736.57 | +440.06 | +0.99% |
| HD | THE HOME DEPOT INC. | 428.67 | +8.67 | +2.06% |
| WMT | WALMART INC. | 89.50 | -0.94 | -1.04% |
Home Depot shares helped lift the Dow Jones Industrial Average over 430 points or 1.3% after profits and sales exceeded estimates. Walmart shares fell after reporting a 25% drop in profits as inflation remains a headwind for its shoppers.
The S&P 500 and Nasdaq Composite also gained by 2% and 2.7%, respectively helped by tech and material stocks.
Fed Chairman Jerome Powell (Fox News Channel)
Powell, during an interview with the Wall Street Journal, indicated policymaker's main goal is stomping out inflation and ongoing rate hikes are appropriate with 50 basis point increases on the table at forthcoming meetings.
Ahead of his remarks, retail sales data for April rose 0.9%, despite inflation, while industrial production rose 1.1% and manufacturing output 0.8% both better than expected, suggesting an improving economy.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 5987.37 | +18.03 | +0.30% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19054.835014 | +51.18 | +0.27% |
| XLK | TECHNOLOGY SELECT SECTOR SPDR ETF | 233.59 | -0.01 | -0.00% |
| XLB | MATERIALS SELECT SECTOR SPDR ETF | 95.06 | +0.97 | +1.03% |
Citigroup shares rallied after Warren Buffett disclosed a new 8% stake in the bank worth nearly $3 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| C | CITIGROUP INC. | 70.75 | +0.91 | +1.30% |
Twitter shares remain in focus after CEO Elon Musk set a key condition for his pending $44 billion purchase of Twitter to go through: transparency on the number of fake or spam accounts.
Musk tweeted, "20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher. My offer was based on Twitter’s SEC filings being accurate."
He followed up by pushing a Twitter poll on whether the percentage of daily users, 95% being unique humans, were accurate.
HEALTH CARE COSTS FOR RETIRED AMERICANS EXPECTED TO SURGE NEXT YEAR
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | NO DATA AVAILABLE | - | - | - |
ELON MUSK SENDS POOP EMOJI TO TWITTER CEO IN RESPONSE TO THREAD ON SPAM, FAKE ACCOUNTS
Homebuilders was also in focus after the National Association of Homebuilders Sentiment Index fell for the fifth straight month.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TOL | TOLL BROTHERS INC. | 167.80 | +10.21 | +6.48% |
| LEN | LENNAR CORP. | 178.66 | +9.49 | +5.61% |
| MTG | MGIC INVESTMENT CORP. | 26.33 | +0.83 | +3.25% |
| DHI | D.R. HORTON INC. | 172.94 | +9.44 | +5.77% |
"The housing market is facing growing challenges," said NAHB Chief Economist Robert Dietz. "Building material costs are up 19% from a year ago, in less than three months mortgage rates have surged to a 12-year high and based on current affordability conditions."
In commodities, oil slipped by 1.5% $112.40 per barrel, while gas prices rose to $4.52 per gallon per AAA, a fresh record.
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In cryptocurrencies, Bitcoin crossed back above the $30,000 level.
The Associated Press contributed to this report.