Live Stock Market Updates: Stocks Rise After Strong Retail Sales, Walmart, Home Depot Profits

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Stocks gained on Tuesday as traders digest key new economic data on the state of the consumer after a few large retailers beat their quarterly results.

New monthly retail sales data of Commerce Department showed better-than-expected consumer spending trends as the holiday season approaches. The total value of retail sales in the United States rose 1.7% in October from September, beating expectations of a 1.4% increase, according to Bloomberg consensus data. The print has been closely watched as an indicator of overall economic strength, given that consumption accounts for about two-thirds of US economic activity.

The results of the retail juggernaut Walmart (WMT) further underscored strong buying trends among U.S. consumers. Of the society like-for-like sales in the United States rose 9.2% from a year ago in the third quarter, and 15.6% from the same period in 2019, to exceed growth estimates of 7%, according to Bloomberg consensus data. E-commerce sales also held steady and rose 8%, better than expected, from an expected 1.9% increase, even as more consumers returned to in-person shopping.

Home deposit (HD), meanwhile, also posted better-than-expected sales and earnings results, with the company continuing to see “high demand for home improvement,” CEO Craig Menear said in The Home Depot’s earnings report. Comparable sales increased 6.1% from the 1.5% increase expected.

These reports have come at the end of what has already been an exceptionally strong earnings season. As of Friday, 92% of S&P 500 companies had published actual results, and among them, 81% of them had published better than expected results, according to FactSet.

The surge in better-than-expected corporate earnings, coupled with still accommodating monetary policy support, helped stocks reach highs throughout the year and pushed the S&P 500 up nearly 25% to as high as now in 2021. These factors have also helped investors continue to overcome concerns about persistently high inflation – although the rigidity of these rising prices remains a closely watched risk for investors.

“We have a stock market that is in the throes of high inflation despite high inflation,” Michael Darda, chief economist of MKM Partners, Yahoo Finance Live said. “It hasn’t always been the case historically, but it is this time around, and I think for a very specific set of reasons.”

“One is that market interest rates are still extremely low on a historic basis, even though they have been rising since the start of the year from what they were in January,” a- he declared. “Liquidity levels are high and companies have great pricing power, so profits have been very high despite these high inflation numbers. This does not necessarily mean that the market will continue to soar in the future. I think it’s really going to depend on how market interest rates move in the future and how the Fed moves, as it will enter a tightening cycle probably before many forecasters assume it. “

4:06 p.m. ET: Stocks end higher after retail sales, most valued earnings: Nasdaq outperforms to gain 0.8%

Here are the main moves in the markets at 4:06 p.m. ET:

  • S&P 500 (^ GSPC): +18.10 (+ 0.39%) to 4,700.90

  • Dow (^ DJI): +54.77 (+ 0.15%) to 36,142.22

  • Nasdaq (^ IXIC): +120.01 (+ 0.76%) to 15,973.86

  • Raw (CL = F): $ -0.10 (-0.12%) to $ 80.78 per barrel

  • Gold (CG = F):-$ 15.40 (-0.83%) to $ 1,851.20 per ounce

  • 10-year cash flow (^ TNX): +1.1 bps for a yield of 1.6340%

12:39 p.m. ET: Rivian shares rally for fifth consecutive day after IPO

Rivian’s stock was on track to post a fifth straight day of gains after its raised IPO last week, with investor appetite for the Amazon-backed EV startup showing no signs of slowing down.

The shares traded as high as $ 169.70 each on Tuesday afternoon, nearly 120% above their IPO price of $ 78. It also sent the company’s market capitalization above that of well-established automaker Volkswagen, Europe’s largest automaker.

According to Bloomberg data, the extended rally gave Rivian the title of this year’s best artist in the week following an IPO of at least $ 1 billion. The stock was previously held by fintech firm Affirm Holdings, which rose 117% in its first five sessions.

10:15 a.m. ET: U.S. manufacturing production hits highest since March 2019 despite supply chain disruptions

American manufacturing production jumped 1.2% to its highest level since early 2019 in October, as the goods-producing sector rebounded from the impacts of Hurricane Ida in late summer.

The increase, which was published in a monthly Federal Reserve report, was higher than the expected 0.9% increase and marked a rebound from the 0.7% drop in manufacturing output in September.

Industrial production, a larger measure that includes the production of mine sand utilities, also rose 1.6% more than expected in October, nearly double the 0.9% increase expected for the month. .

9:30 a.m.ET: Open for mixed actions

Here’s where the markets were trading shortly after the opening bell:

  • S&P 500 (^ GSPC): +0.17 point (+ 0.00%) to 4,682.97

  • Dow (^ DJI): +62.20 (+ 0.17%) to 36,149.65

  • Nasdaq (^ IXIC): -23.9 (-0.15%) to 15,829.95

  • Raw (CL = F): $ -0.21 (-0.26%) to $ 80.67 per barrel

  • Gold (CG = F):-$ 3.80 (-0.2%) to $ 1,862.80 per ounce

  • 10-year cash flow (^ TNX): +0.6 bps for a yield of 1.627%

9:20 a.m. ET: Import prices jump in October, adding to inflationary signals

Import prices increased more than expected in October compared to September, suggesting that inflationary pressures were still spilling over to the economy.

The Commerce Department reported on Tuesday that import prices rose 1.2% on a monthly basis in October, well above September’s 0.4% increase. That figure was also higher than the 1.0% increase expected by consensus economists for October, according to Bloomberg data.

Energy prices were a big contributor to the overall figure, with oil prices rising 8.1% in the month. Excluding oil, however, the import price index rose another 0.5% in the month, more than double the 0.2% increase recorded in September.

8:39 a.m. ET: Retail sales exceed estimate, rising 1.7% from 1.4% estimate

Retail sales in the United States beat expectations in October and rose for a third consecutive month, showing that the American consumer was already spending at a strong pace as the holiday shopping season approached.

The The Commerce Ministry said on Tuesday that retail sales rose 1.7% month-on-month in October, beating estimates of 1.4%, according to Bloomberg consensus data. In September, retail sales rose 0.8%, this figure being revised upwards from the previously announced 0.7% increase.

“Non-store retailers” posted the largest percentage increase in sales in October. This category, which captures e-commerce sales, saw its sales increase by 4.0% per month. Next come sales by gasoline stations with an increase of 3.9% and electronics and appliance stores with an increase of 3.8%.

Some of the categories associated with the reopening, however, saw sales momentum slow. Sales at food services and drinking places stagnated during the month, and sales at clothing and clothing accessories stores turned negative, falling 0.7%.

7:25 a.m. ET Tuesday: Stock futures rise ahead of retail sales, and like Walmart and Home Depot’s best estimates

Here’s where the markets were trading before the opening bell:

  • S&P 500 Futures Contracts (ES = F): +3 points (+ 0.06%), at 4,682.00

  • Dow Futures (YM = F): +64 points (+ 0.18%), at 36,073.00

  • Nasdaq Futures (NQ = F): +9.5 points (+ 0.06%) to 16,197.25

  • Raw (CL = F): + $ 0.39 (+ 0.48%) to $ 81.27 per barrel

  • Gold (CG = F): + $ 8.50 (+ 0.46%) to $ 1,875.10 per ounce

  • 10-year cash flow (^ TNX): -0.1 bps for a yield of 1.611%

6:15 p.m. ET Monday: Stock futures are on the rise as overnight session kicks off

Here’s where the markets were trading Monday night:

  • S&P 500 Futures Contracts (ES = F): +1.75 point (+ 0.04%), at 4,680.75

  • Dow Futures (YM = F): +16 points (+ 0.04%), at 36,025.00

  • Nasdaq Futures (NQ = F): +6.5 points (+ 0.04%) to 16,194.25

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, October 12, 2021. REUTERS / Brendan McDermid

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter



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