Overall, markets were hovering near oversold territory and today’s rally was a result of walking back some of the recent recession fears. "The overall economy is still underpinned by a very strong labor market and while challenges to margins have emerged for some big-box retailers, there are other signals in the economy that show consumers still have the ability to spend. "Today’s relief rally is a signal to investors that despite the inflation headwinds that many companies are facing, consumers still have the wherewithal to spend," Allianz Investment Management Senior Investment Strategist Charley Ripley said in a note. Shares of discount retailers Dollar Tree ( DLTR) and Dollar General ( DG) were also up more than 21% after both companies raised forecasts on Thursday.īoosted by the string of better-than-expected results, the S&P 500 Consumer Discretionary Index rose as much as 5.6% in its best day since April 2020 as optimism on the health of the consumer at least temporarily returned. Strong retail earnings Thursday morning spurred markets early in the session, with Macy's ( M) rising as much as 18% in intraday trading after the retail giant raised its profit outlook in an upside surprise to investors weighing a slew of downward forecast revisions from peers. The Nasdaq Composite jumped 2.7% as the index attempts to claw its way out of bear market territory. The S&P 500 surged 2%, and the Dow Jones Industrial Average gained 518 points, or 1.6%. stocks ended sharply higher Thursday after a comeback from recent selling gained momentum and placed markets on track to snap a 7-week losing streak.
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