U.S. stocks jump as retailers’ solid outlook boosts confidence | Financial Market News

Discounters Dollar Tree Inc. and Dollar General Corp. posted their biggest gains on record on strong sales forecasts.

go through Bloomberg

Despite supply chain hurdles and inflationary pressures, stocks extended their recovery from their lowest levels in more than a year as a solid outlook for retailers boosted confidence in the economy.

Risk appetite was also fueled by the biggest drop in U.S. mortgage rates since April 2020 and Broadcom’s $61 billion acquisition of VMware Inc. Consumer stocks led the S&P 500 higher as Macy’s raised its earnings forecast, while discounters Dollar Tree Inc. and Dollar General Corp. posted their biggest ever gains amid stronger sales forecasts. Southwest Airlines Co. and JetBlue Airways Group Inc. surged on bullish revenue forecasts. Megacaps Apple Inc. and Tesla Inc. helped push the Nasdaq 100 up nearly 3 percent.

Investors were relieved by the retailer’s strong view after giants Walmart Inc and Target Inc cut their outlooks last week, sparking an industry sell-off. According to a report from the Federal Reserve Bank of New York, U.S. consumers still largely expect the inflation shock to be temporary and price gains to remain low and stable in the long run.

Quincy Krosby, chief equity strategist, said: “While this was an expected and closely watched potential ‘oversold’ rally, the basis for today’s market climb suggests that last week’s all-important U.S. consumer Doom and pessimism may be overstated.” In LPL Finance.

Here are some key events to watch this week:

  • U.S. core PCE price index; personal income and spending; wholesale inventories; Friday University of Michigan consumer confidence index

Some major trends in the market:

stock

  • The S&P 500 was up 2% as of 4 p.m. in New York
  • The Nasdaq 100 rose 2.8%
  • The Dow Jones Industrial Average rose 1.6%
  • MSCI World Index rose 1.5%

currency

  • Bloomberg Dollar Spot Index fell 0.2%
  • The euro rose 0.4% to $1.0724
  • Sterling rose 0.2% to $1.2599
  • Yen up 0.2% against dollar at 127.09

bond

  • The 10-year Treasury yield was little changed at 2.75%
  • German 10-year bond yield rose 5bps to 1.00%
  • UK 10-year bond yield rose 6 basis points to 1.97%

commodity

  • West Texas Intermediate crude rose 3.2% to $113.90 a barrel
  • Gold futures rose 0.2% to $1,856.20 an ounce

– Assisted by Andreea Papuc, Vildana Hajric and Isabelle Lee.

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