Wall Street jumps to raise retailers’ outlook, weakening Reuters concerns about the Fed

ยฉ Reuters. FILEPHOTO: Traders are working on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, USA on May 20, 2022. REUTERS / Andrew Kelly

Steven culp

(Reuters)-Wall Street soared Thursday after optimistic retail earnings outlook and weakening concerns about the Federal Reserve’s overly aggressive rate hikes made investors enthusiastic.

All three major US stock indexes have recorded strong gains, with economically sensitive consumer discretionary and microchip stocks outpacing the wider market.

Technology-driven Nasdaq has skyrocketed the most. That 2.7% advance came from the interests of Apple Inc (NASDAQ :), Tesla (NASDAQ ๐Ÿ™‚ Inc, and Amazon.com Inc (NASDAQ :).

Every week, Nasdaq and Dow will record the longest loss streak in decades. Meanwhile, Benchmark S & P plummeted 14.1%, approaching the distance to be identified as a bear market.

At current levels, all three indexes are poised to record the largest weekly rise since mid-March.

“First-quarter earnings were basically better than expected, and coupled with the Fed, the Fed has shown that it could load interest rate tightening policies on the front end and suspend them in the second half of the fall, all of which are investments. I’m giving it home. Why do I feel optimistic? ” Sam Stovall, chief investment strategist at CFRA Research in New York, said.

Bright guidance from retailers seemed to offset the harsh warnings from their peers over the last few weeks.

Department store operator Macy’s (NYSE ๐Ÿ™‚ surged 19.3% after raising its annual profit forecast.

Discount chain Dollar General Corporation (NYSE ๐Ÿ™‚ and Dollar Tree (NASDAQ ๐Ÿ™‚ rose 13.7% and 21.9%, respectively, following the increase in annual sales forecasts. This suggests that consumers are buying cheaper products in the midst of decades of high inflation.

Minutes from the Federal Open Market Committee’s (FOMC) recent monetary policy conference have calmed concerns that the US central bank could turn more hawkish.

โ€œSince World War II, daily price fluctuations have been more than 1% and 65% higher than average,โ€ says Stovall.

“If the Fed is too aggressive, they will curb inflation and curb economic growth,” he added. .. ”

Economic data such as unemployed billing, home sales hold, and GDP released Thursday show enough softening to wrap the good news in the bad and encourage dovish pivots from the FRB by the fall. It suggests that.

The S & P 500 rose 516.91 points (1.61%) to 32,637.19, the S & P 500 rose 79.11 points (1.99%) to 4,057.84, and rose 305.91 points (2.68%) to 11,740.65.

Of the 11 major indices of the S & P 500, all but real estate have finished their sessions. At consumer discretion, it rose 4.8%, with technology and finance rising 2.5% and 2.3%, respectively.

Share Twitter Inc (NYSE ๐Ÿ™‚ Soared 6.4% on news that social media companies are suing billionaire Elon Musk for delaying disclosure of the company’s shares.

US listed stock Alibaba (NYSE ๐Ÿ™‚ The group rose 14.8% after China’s e-commerce company exceeded estimates, but refused to provide forward guidance due to COVID-19 restrictions in China.

The problem of moving forward outweighed the problem of declining on the New York Stock Exchange by a ratio of 5.16: 1. In Nasdaq, a 2.95 to 1 ratio favored the advancers.

The S & P 500 recorded three new 52-week highs and 29 new lows. The Nasdaq Composite recorded 28 new highs and 116 new lows.

Volume on the US exchange was 11.43 billion shares, compared to an average of 13.220 billion shares over the last 20 trading days.

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