Stocks Climb, Lifted by Retailer Results
U.S. stocks rose Thursday, putting the Dow Jones Industrial Average on course for a fifth consecutive day higher, after strong results from retailers lifted sentiment across the market.
The blue chips added 1.8%, or about 580 points, while the S&P 500 gained 2.2%. The tech-heavy Nasdaq Composite climbed 3%, helped by gains in shares of
and
The outlook for stocks turned cheerier Thursday when several retailers delivered strong results.
reported robust sales growth and lifted its earnings guidance, while discount chains
and
beat Wall Street’s earnings expectations.
Last week, results from retailers including Walmart, Target and Kohl’s raised concerns that rising costs are eroding profits while inflation prompts some consumers to rethink their budgets.
“After having a real challenging time with retail last week, you’re starting to see some other signs that not everybody in retail is doing poorly,” said
Wayne Wicker,
chief investment officer at MissionSquare Retirement. “It probably provides a little more confidence that the consumer continues to be reasonably strong.”
The consumer-discretionary segment rose 5.4%, making it the top performer of the S&P 500’s 11 sectors.
Equity investors have endured a particularly volatile period lately. At the end of last week the S&P 500 fell far enough that it was on track to close at least 20% below its January peak. The benchmark then reversed course to avoid closing in bear market territory.
Despite the advances by major indexes this week, many investors expect markets to remain unsettled for some time to come.
“I think we’re going to still go through some more volatility ahead,” said
Leslie Thompson,
chief investment officer at Spectrum Wealth Management.
Investors have been considering how the Federal Reserve’s plans to tighten monetary policy to combat inflation could weigh on economic growth and the performance of financial markets.
Fed meeting minutes released Wednesday showed that policy makers were in agreement for half-percentage point increases in June and July, in line with previous communication. Major stock indexes closed higher after the release.
“To some extent, markets have been reassured that the Fed isn’t going to tighten more aggressively than what is expected,” said
Luc Filip,
head of investments at SYZ Private Banking.
…
Read More: Stocks Climb, Lifted by Retailer Results