June 29, 2022

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Stocks close higher, driven by retailer results

Stocks close higher, driven by retailer results

US stocks rose on Thursday and the Dow Jones Industrial Average rose for the fifth consecutive day after strong results from retail traders lifted sentiment across the market.

“After having a challenging time with retail last week, I’m starting to see some other signs that not everyone is doing bad,” said Wayne Wicker, chief investment officer at MissionSquare Retirement. “Maybe it provides more confidence that the consumer is still reasonably robust.”

The Dow Jones Industrial Average rose 516.91 points, or 1.6%, to 32,637.19, from 11% of the January record. The S&P 500 advanced 79.11 points, or 2%, to 4,057.84. The technology heavyweight Nasdaq Composite Index rose 305.91 points, or 2.7%, to 11,740.65, helped by gains in shares of






Equity investors have had a particularly volatile period lately. Last weekend, the S&P 500 fell enough that it was On track to close at least 20% Below its peak in January. Then the index reversed course to avoid closing in a bear market area.

Despite the advances in the major indexes this week, many investors expect the markets to remain unstable for some time to come.

“I think we’re still going through some volatility ahead,” said Leslie Thompson, chief investment officer at Spectrum Wealth Management.

Investors have been thinking about how the Federal Reserve’s plans to tighten monetary policy could affect economic growth and the performance of financial markets.

The minutes of the Federal Reserve’s meeting released on Wednesday showed that policy makers are in agreement Half a percentage point rate increase In June and July, in line with previous communications. Major stock indices closed higher after the release.

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“To some extent, markets have been reassured that the Fed will not tighten more aggressively than expected,” said Luke Philippe, head of investments at SYZ Private Banking.

Traders worked on the floor of the New York Stock Exchange on Tuesday.


Justin Lin/Shutterstock

Money managers are closely watching the new data as they gauge the health of the economy. On Thursday, the second reading of US GDP for the first quarter was worse than the first shrinking at an annual rate of 1.5%.

Economic data has been weaker than expected lately. We see this tightening in the economy. “How severe the slowdown in growth is what the markets are thinking right now,” said Chanel Ramjee, multi-asset fund manager at Pictet Asset Management.

Unemployment Complaint Rates It fell last week and hovered near historic lows, indicating a mixed economic picture.

Earnings reports continued to drive moves in individual stocks. Analysts were scrutinizing the results for indications that inflation was beginning to weigh on earnings.

“We focus on profits and profitability. A lot of stable companies are reporting less guidance,” Mr. Ramjee said. “Even the tech sector is not immune to margin pressure, especially from input costs such as wages.”


Williams Sonoma

It jumped $15.02, or 13%, to $130 after the retailer posted earnings that beat analysts’ expectations. Macy’s stock jumped $3.71, or 19%, to $22.92 after the supermarket chain. Recorded strong sales growth And directing raised its profits.

Dollar Tree shares rose $29.21, or 22%, to $162.80, and Dollar General shares rose $26.79, or nearly 14%, to $222.13 after discounted retail chains. Exceeding Wall Street Profit Expectations. It was the best one-day gain ever for both stocks, according to market data from Dow Jones.


Shares rose $8.76, or 5.2 percent, to $178.51 after the chip maker posted record revenue, though. Sales forecast For the current quarter it came in below Wall Street estimates.



He added $3.82, or 3.2%, to $124.36 after that

from Broadcom

She confirmed that she would Get a cloud computing company for $61 billion in cash and inventory. Broadcom shares rose $19.03, or 3.6%, to $550.66.

In the bond market, the return on the index US 10-year Treasuries It rose to 2.756% from 2.746% Wednesday. Yields rise as bond prices fall.

Global oil benchmark Brent crude rose 3% to trade at $117.40 a barrel.

Offshore, the Stoxx Europe 600 continental index was up 0.8%. In Asia, the main criteria were mixed. The Shanghai Composite added 0.5% while Hong Kong’s Hang Seng fell 0.3%. Japan’s Nikkei 225 was also down 0.3%.

The Central Bank of South Korea Raise the main policy rate to 1.75% on Thursday and indicated it would tighten policy further to continue combating high inflation.

Write to Karen Langley at [email protected] and Anna Hertenstein at [email protected]

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