US stocks rose on Thursday, putting the Dow Jones Industrial Average on track for the fifth consecutive day, after strong results from retail traders lifted sentiment across the market.
Leading stocks added 1.8%, or about 580 points, while the S&P 500 gained 2.2%. The high-tech Nasdaq Composite is up 3%, boosted by gains in shares
The outlook for stocks became more cheerful Thursday when several retail traders provided solid results.
Recorded strong sales growth And raise their profit directive, while the discount chains
“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 Consumer Appreciation sector rose 5.4%, making it the best performer among the 11 sectors of the S&P 500 Index.
Equity investors have had a particularly volatile period of late. 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’ll continue to have more volatility going forward,” said Leslie Thompson, chief investment officer at Spectrum Wealth Management.
Investors have been studying how the Federal Reserve’s plans to tighten monetary policy to combat inflation could affect economic growth and the performance of financial markets.
The minutes of the Federal Reserve meeting released on Wednesday showed that policy makers are in agreement Half a percentage point increase In June and July, in line with previous communications. Major stock indices closed higher after the release.
“To some extent, markets have been reassured that the Fed will not tighten more aggressively than expected,” said Luc Filip, head of investments at SYZ Private Banking.
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 came in 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 direction,” Mr. Ramjee said. “Even the tech sector is not immune to margin pressures, especially from input costs such as wages.”
Shares are up 6% after the chip maker posted record revenue, though Sales forecast For the current quarter it came in below Wall Street estimates.
It jumped 13% after the retailer posted earnings that beat analysts’ expectations. Macy’s shares are up 19% after raising full-year earnings guidance.
Dollar Tree shares are up 20% and Dollar General shares are up 15% after discounted retail chains Reported earnings higher than expectations.
Added 3.8% after
She confirmed that she would Get a cloud computing company for $61 billion in cash and inventory. Broadcom shares rose 3.9 percent.
In the bond market, the return on the index US 10-year Treasuries It rose to 2.761% from 2.746% Wednesday. Yields rise as bond prices fall.
Brent crude, the global benchmark, rose 3 percent to trade at $117.50 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.
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