Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Dow, S&P 500 climb as upbeat results from Walmart, others boost optimism

Stock Markets Aug 17, 2022 09:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 8, 2022. REUTERS/Andrew Kelly/File Photo
 
NDX
-1.73%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
-1.51%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-1.71%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WMT
-1.93%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
-1.51%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SPX
-1.51%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Caroline Valetkevitch

NEW YORK (Reuters) - The Dow and S&P 500 rose on Tuesday as stronger-than-expected results and outlooks from Walmart (NYSE:WMT) and Home Depot bolstered views on the health of consumers, while technology shares declined and weighed on the Nasdaq.

The S&P 500 consumer discretionary and staples sectors gave the benchmark index its biggest lift, while the S&P 500 retail index rose 1.9%.

The S&P 500 also came close to breaking above its 200-day moving average, a key technical level. The benchmark index has not closed above that level since early April.

Walmart Inc shares jumped 5.1% after the retailer forecast a smaller drop in full-year profit than previously projected, while Home Depot Inc (NYSE:HD) gained 4.1% after it surpassed estimates for quarterly sales.

At the same time, the 10-year U.S. Treasury yield rose, weighing on technology and other high-growth stocks. Shares of Microsoft Corp (NASDAQ:MSFT) were down 0.3% on Tuesday after recent gains.

After a harsh first half of the year, the S&P 500 is up nearly 14% since the start of July, helped in part by better-than-expected earnings from Corporate America.

Investors have also been optimistic lately that the Federal Reserve can achieve a soft landing for the economy as it tightens policy and raises interest rates to reduce decades-high inflation.

"When you transition from a bear market to a bull market, especially one where the Fed is raising rates and there are concerns over the consumer, you really want to see consumer discretionary underpinned by enthusiasm. And today's move in discretionary names is positive for the market," said Quincy Krosby, chief global strategist for LPL Financial in Charlotte, North Carolina.

Walmart in July slashed its profit forecast amid surging prices for food and fuel.

The Dow Jones Industrial Average rose 239.57 points, or 0.71%, to 34,152.01, the S&P 500 gained 8.06 points, or 0.19%, to 4,305.2 and the Nasdaq Composite dropped 25.50 points, or 0.19%, to 13,102.55.

With results in from the majority of S&P 500 companies, second-quarter earnings are expected to have risen 9.7% from a year earlier, compared with 5.6% estimated on July 1, according to IBES data from Refinitiv.

Shares of Target Corp (NYSE:TGT), which reports quarterly results early on Wednesday, closed 4.6% higher.

Still, investors will be anxious to see July U.S. retail sales data, which is due on Wednesday as well. Also on Wednesday, the Fed is scheduled to release minutes from its July policy meeting.

Investor sentiment is still bearish, but no longer "apocalyptically" so, according to BofA's monthly survey of global fund managers in August.

Volume on U.S. exchanges was 10.92 billion shares, compared with the 10.96 billion average for the full session over the last 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored decliners.

The S&P 500 posted 8 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 82 new highs and 40 new lows.

Dow, S&P 500 climb as upbeat results from Walmart, others boost optimism
 

Related Articles

Adobe Earnings, Revenue miss in Q4
Adobe Earnings, Revenue miss in Q4 By Investing.com - Oct 01, 2022 4

Investing.com - Adobe (NASDAQ:ADBE) reported on Thursday fourth quarter earnings that missed analysts' forecasts and revenue that fell short of expectations. Adobe announced...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email