Wall St marches ahead as retail sales quell slowdown worries
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Cisco gains after forecasting upbeat Q1 rev, cutting 7% jobs
Nike rises as Ackman's Pershing Square reveals new stakes
Walmart advances after raising FY profit forecast
Indexes up: Dow 1.26%, S&P 500 1.03%, Nasdaq 1.2%
Updated at 9:35 a.m. ET/1335 GMT
By Shubham Batra and Shashwat Chauhan
Aug 15 (Reuters) -Wall Street's main indexes rose about 1% onThursday as retail sales data for July indicated resilient consumer spending, allaying fears of an imminent recession in the world's biggest economy.
All megacap and growth stocks edged up, with Tesla<TSLA.O> leading the pack, rising 4.1%.
Nine of the 11 major S&P 500 sectors were trading higher, with consumer discretionary .SPLRCD and materials .SPLRCM leading gains.
Retail sales increased 1.0% last month after a downwardly revised 0.2% drop in June, easing fears of a sharp economic slowdown that were fanned by a jump in the unemployment rate last week.
"The economy is not going into a recession imminently. This will take 50 basis points in September off the table. Still think that 25 basis points make sense just because inflation continues to ease," said Steve Wyett, chief investment strategist at BOK Financial.
The yield of the two-year US2YT=RR and 10-year US10YT=RR Treasury notes rose after the data, with traders increasing the bets for a 25 basis points rate cut by the Federal Reserve to 75% versus 65% before the data. 0#FEDWATCH
Meanwhile, retailbellwether Walmart WMT.N added 7.5% after raising its annual profit forecast for the second time this year, as Americans kept flocking to its stores for inexpensive essentials.
Rival Target TGT.N also jumped 4.8%, while Costco COST.O advanced 2%.
A separate reading also showed the number of Americans filing new applications for unemployment benefits unexpectedly fell last week.
Investors have kept a cautious eye on this week's data releases - the last set of economic indicators before Fed Chairman Jerome Powell delivers a much-anticipated speech at Jackson Hole next week.
Atlanta Fed President Raphael Bostic told the Financial Times that he is open to an interest rate cut in September, while St. Louis Fed chief Alberto Musalem stated that the time for the central bank tostart easing monetary policy may be nearing.
The S&P 500 <.SPX>on Wednesday extended its winning streak to five sessions, boosted by softer inflation data, but the Nasdaq .IXIC barely scraped into positive territory as Alphabet GOOGL.O and some megacap stocks weighed.
At 9:35 a.m. ET, the Dow Jones Industrial Average .DJI rose 503.66 points, or 1.26%, to 40,512.05, the S&P 500 .SPX gained 56.25 points, or 1.03%, to 5,511.46 and the Nasdaq Composite .IXIC gained 206.07 points, or 1.20%, to 17,398.67.
Among other movers, Cisco Systems CSCO.O rose 9.4% after it forecast better-than-expected first-quarter revenue and said it was cutting 7% of its global workforce.
Nike NKE.N climbed 3.3% as billionaire investor William Ackman built new stakes in the sportswear company, while Ulta Beauty ULTA.O jumped 10.4% after Warren Buffett's Berkshire Hathaway BRKa.N acquired a stake in the cosmetics store chain.
Deere & Co DE.N gained 5.8% after the farm, construction and forestry equipment maker beat analysts' expectations for third-quarter profit.
Advancing issues outnumbered decliners by a 4.76-to-1 ratio on the NYSE and by a 4.18-to-1 ratio on the Nasdaq.
The S&P 500 posted 21 new 52-week highs and one new low, while the Nasdaq Composite recorded 38 new highs and 30 new lows.
Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel
Asset collegati
Ultime news
Disclaimer: le entità di XM Group forniscono servizi di sola esecuzione e accesso al nostro servizio di trading online, che permette all'individuo di visualizzare e/o utilizzare i contenuti disponibili sul sito o attraverso di esso; non ha il proposito di modificare o espandere le proprie funzioni, né le modifica o espande. L'accesso e l'utilizzo sono sempre soggetti a: (i) Termini e condizioni; (ii) Avvertenza sui rischi e (iii) Disclaimer completo. Tali contenuti sono perciò forniti a scopo puramente informativo. Nello specifico, ti preghiamo di considerare che i contenuti del nostro servizio di trading online non rappresentano un sollecito né un'offerta ad operare sui mercati finanziari. Il trading su qualsiasi mercato finanziario comporta un notevole livello di rischio per il tuo capitale.
Tutto il materiale pubblicato sul nostro servizio di trading online è unicamente a scopo educativo e informativo, e non contiene (e non dovrebbe essere considerato come contenente) consigli e raccomandazioni di carattere finanziario, di trading o fiscale, né informazioni riguardanti i nostri prezzi di trading, offerte o solleciti riguardanti transazioni che possano coinvolgere strumenti finanziari, oppure promozioni finanziarie da te non richieste.
Tutti i contenuti di terze parti, oltre ai contenuti offerti da XM, siano essi opinioni, news, ricerca, analisi, prezzi, altre informazioni o link a siti di terzi presenti su questo sito, sono forniti "così com'è", e vanno considerati come commenti generali sui mercati; per questo motivo, non possono essere visti come consigli di investimento. Dato che tutti i contenuti sono intesi come ricerche di investimento, devi considerare e accettare che non sono stati preparati né creati seguendo i requisiti normativi pensati per promuovere l'indipendenza delle ricerche di investimento; per questo motivo, questi contenuti devono essere considerati come comunicazioni di marketing in base alle leggi e normative vigenti. Assicurati di avere letto e compreso pienamente la nostra Notifica sulla ricerca di investimento non indipendente e la nostra Informativa sul rischio riguardante le informazioni sopra citate; tali documenti sono consultabili qui.
