The US stocks closed higher on Tuesday as earnings from Home Depot and retail sales data suggested strong consumer health and less fear that Federal Reserve (Fed) may be more aggressive in the face of rising inflation.
Data showed that retail sales rose 1.7% in October, the biggest increase since March and above the 1.4% estimate, suggesting that Americans have started to do their Christmas shopping early in an effort to avoid product shortages.
The retailer Home Depot Inc. spiked 5.73% to close at an all-time high and its biggest one-day percentage gain since April 2020, surpassing quarterly sales estimates by nearly $ 2 billion and widely exceeding earnings per share forecast.
“This gives people relief that the retail outlook is still quite auspicious,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.
“The picture is one where prices are rising, but consumer spending is still strong and supply chains appear to be under strain, but we are still able to put products on the shelves,” he added.
The Promedio Industrial Dow Jones rose 54.77 points, or 0.15%, to 36,142.22 units, while the S&P 500 it gained 18.1 points, or 0.39%, to 4,700.9 units. The Nasdaq added 120.01 points, or 0.76%, to 15,973.86 units.
The luxury consumer sector rose 1.38% and was the one that performed the best of the 11 S&P, and the retail benchmark advanced 1.24% to an all-time high for the second consecutive session.
Walmart Inc, the country’s largest retailer, raised its forecast for annual sales and earnings. However, its shares fell 2.55% as supply chain problems reduced margins and weighed on the consumer staples sector.
Industrial stocks also gained after data showed US manufacturing output rose to a 2-1 / 2-year high in October.
The positive data helped investors brush aside comments from St. Louis Federal Reserve Chairman James Bullard, who advocated a more aggressive stance from the central bank in response to rising inflation.
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Reference-www.eleconomista.com.mx