The Dow Jones Industrial Average rallied on Tuesday, rising for a fifth day as earnings results from Walmart and Home Depot showed consumer spending could remain strong enough to keep the economy from tipping over into a downturn.
The Dow rallied 239.57 points, or 0.71% to close at 34,152.01, while the S&P 500 inched 0.19% higher to 4,305.20. The Nasdaq Composite slipped 0.19% to 13,102.55.
The 30-stock index opened Tuesday’s session in negative territory before rallying as much as nearly 369 points at session highs thanks to a boost from Walmart and Home Depot. Shares of both retailers popped as Walmart reiterated its second-half outlook and Home Depot maintained its 2022 guidance.
Retail names including Target, Best Buy and Bath & Body Works gained 4% each on the back of those results. Earnings for the sector are set to continue with reports from Target and Lowe’s on Wednesday.
“We still have a lot of retail stocks that are going to report,” said Adam Sarhan, founder and CEO at 50 Park Investments. “But by and large, if at the end of the week, we’re still up and we’re up nicely, and those retailers don’t give back those gains they’re enjoying today, that’s going to be strengthening the bullish case.”
In other news, Bed Bath & Beyond shares staged a rally, closing up more than 29% as Reddit traders once again bet big on the stock.
Wall Street is coming off a solid session, with the major averages all rising Monday after a sharp intraday turnaround and building on the market’s rally off a June low.
News Source: CNBC
