Wall Bourse ends up sharply, fueled by Apple

Ten of the 11 major S&P sector indices advanced, with the financials, materials, consumer discretionary and technology sectors all gaining more than 2%.

Investors were encouraged by data showing that US retail sales rose 0.9% in April as consumers bought motor vehicles as part of an improved supply and frequented restaurants.

Recently sanctioned shares of Microsoft Corp, Apple Inc, Tesla Inc and Amazon gained between 2% and 5.1%, driving the S&P 500 and Nasdaq higher.

Tuesday’s broad rally followed weeks of selling in the US stock market which last week saw the S&P 500 sink to its lowest level since March 2021.

“The larger pockets of stocks that investors tend to buy have basically been beaten. They are either in correction or in bear market territory,” said Sylvia Jablonski, chief investment officer of Defiance ETF. “I think investors are looking for these opportunities to buy on the dip, and I suspect today is a good day to do that.”

The S&P 500 banking index jumped 3.8%, with Citigroup climbing nearly 8% after Warren Buffett’s Berkshire Hathaway disclosed an investment of nearly $3 billion in the US creditor.

Another set of economic data showed industrial production accelerated by 1.1% last month, better than estimates of 0.5% and faster than March’s 0.9% advance.

“This is consistent with continued economic growth in the second quarter and not an ongoing recession,” said Bill Adams, chief economist at Comerica Bank Dallas.

The US Federal Reserve “will continue to push” to tighten US monetary policy until it is clear that inflation is coming down, Fed Chairman Jerome Powell said at an event on Tuesday.

Traders are pricing an 85% chance of a 50 basis point rate hike in June.

The S&P 500 climbed 2.02% to end the session at 4,088.85 points.

The Nasdaq gained 2.76% to 11,984.52 points, while the Dow Jones Industrial Average rose 1.34% to 32,654.59 points.

Underscoring recent volatility in the stock market, the S&P 500 has gained or lost 2% or more in one session some 39 times so far in 2022, compared to 24 times for all of 2021.

CHART-S&P 500 most active trades –

Walmart Inc. fell 11.4% after the retail giant slashed its full-year profit forecast, signaling declining margins. It was the biggest one-day percentage drop in Walmart stock since 1987.

Retailers Costco, Target and Dollar Tree fell between 0.8% and 3.2%.

United Airlines Holdings Inc gained 7.9% after the carrier upgraded its revenue forecast for the current quarter, boosting shares of Delta Air, American Airlines and Spirit Airlines.

A positive first-quarter earnings season was clipped by concerns over the conflict in Ukraine, runaway inflation, COVID-19 lockdowns in China and aggressive policy tightening by central banks.

The S&P 500 is down about 14% so far in 2022, and the Nasdaq is down about 23%, hurt by falling growth stocks.

US-listed Chinese stocks surged on hopes that China would ease its crackdown on the tech sector.

Rising issues outnumbered falling issues on the NYSE by a ratio of 2.92 to 1; on the Nasdaq, a ratio of 3.19 to 1 favored the advances.

The S&P 500 posted a new 52-week high and 30 new lows; the Nasdaq Composite recorded 24 new highs and 126 new lows.

Volume on US exchanges was 12.0 billion shares, compared to an average of 13.3 billion over the past 20 trading days.

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