20.6 C
New York

Dow rises greater than 100 points as traders attempt to shake off Goal’s profit warning

Published:

Stocks rose Tuesday even after Goal issued a warning about its current quarter’s profits, which put pressure on the broader retail sector.

The Dow Jones Industrial Average gained 188 points, 0.6%. The S&P 500 and Nasdaq Composite rose 0.7% and 0.8%, respectively. The indexes opened solidly lower but trimmed those losses and turned positive because the day progressed.

The gains for the indexes got here despite weakness for retail stocks.

Goal shares fell about 3% after the retailer announced plans to work down excess inventory, though the stock trimmed its losses because the session progressed. The corporate said it should implement additional markdowns to products and cancel some orders. Goal also lowered its operating margins guidance for the quarter. Walmart shares followed Goal lower, sliding 2.2%.

Major retailers have delivered mixed results and outlooks in recent weeks, adding to stock market volatility as investors try to find out if the announcements signal the beginning of a possible recession or a rapid change in consumer spending that caught some corporations off guard on the inventory side.

“I hear shifting spending, not stopping spending. So for those who think concerning the past few years, you have got had a move toward goods spending over services spending. That’s now unwinding as we push farther from the impact that Covid had on us,” Brent Schutte from Northwestern Mutual Wealth Management said on “Squawk on the Street.”

Energy was one in every of top performing sectors on Tuesday as oil futures hovered near $120 per barrel. Exxon jumped greater than 3% following an upgrade from Evercore ISI, putting the stock above $100 per share for the primary time since 2014. Phillips 66 and Chevron gained 2.7% and 1.6%, respectively.

Shares of Apple rose greater than 1%, leading some Big Tech stocks. In deal news, Kohl’s jumped nearly 9% after the retailer said it was in exclusive negotiations with Franchise Group a couple of potential takeover.

Concerns concerning the macro economy could also be limiting the recent gains for stocks. The Atlanta Federal Reserve’s GDPNow tracker showed a growth rate of just 0.9% for the second quarter on Tuesday, down from 1.3% last week. The World Bank cut its global growth forecast to 2.9%.

The U.S. consumer, nonetheless, appears to still be a vibrant spot for some corporations.

“We’re still taking a look at decent growth for this yr, that is the predominant take away. The buyer’s still in decent shape,” said Ed Moya, senior market analyst at Oanda.

Stock picks and investing trends from CNBC Pro:

Investors are still assessing whether the recent bounce in stocks is a bear market rally or has the market reached a bottom from this yr’s sell-off.

“For six consecutive weeks for the reason that starting of April, investors continued so as to add recent shorts and, hence, extend their bearish bias in the marketplace. While this bearish momentum did fade at the tip of May, the past week has shown no signs of any bullish flow momentum to support a more sustained rally from here,” Citi strategist Chris Montagu said in a note to clients.

All three of the foremost averages finished barely higher Monday, but gave back most of their gains from earlier within the day because the 10-year Treasury yield spiked as much as 3% and hit its highest level in nearly a month. The ten-year yield fell back below 3% on Tuesday, possibly helping stocks pare early losses.

May’s consumer price index reading, which is due out Friday, is the predominant economic indicator that investors are expecting this week. If the reading is cooler than April’s numbers, as expected, some could interpret it as an indication that inflation has peaked.

-CNBC’s Michael Bloom contributed to this report.

sportinbits@gmail.com
sportinbits@gmail.comhttps://sportinbits.com
Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles

spot_img

Recent articles

spot_img