The Dow The Jones Industrial Average topped 40,000 for the first time on Thursday, as US stocks hovered around a record set a day earlier.
The Dow was up 69 points, or 0.2%, at 39,967, in afternoon trading. It had peaked at 40,000 earlier in trading, making its last 10,000-point jump in about three and a half years, as the US economy and corporate profits emerged from the crash caused by COVID-19. So far, they have held up despite the worst inflation in decades, the crushing impact of high interest rates and fears of a seemingly inevitable but yet to come recession. go out.
The S&P 500, which is much more widely followed on Wall Street and reflects the performance of more 401(k) accounts than the Dow, was 0.1% higher, as of 1:22 p.m. East. The Nasdaq composite fell 0.1%. They rebounded Wednesday to an all-time high.
Walmart was one of the strongest forces lifting the market and it rose 6.5% later Stronger profit reporting in the latest quarter than analysts expected. It also said its revenue for the year could exceed the forecast it had previously given.
Walmart’s strength could be an encouraging sign for the broader economy. Concerns are growing about whether U.S. households can keep up with inflation that remains high, even if it is not as bad as before and credit card payments are more expensive. especially those with lower incomes.
Targetreports quarterly results next week, got a boost following Walmart’s report, along with other retailers such as Walmart common dollars And Dollar tree. Each person adds at least 2.9%.
Chubb increased 4.2% later Warren Buffett’s Berkshire Hathaway revealed it has built up an ownership stake in the insurance company.
The better-than-expected earnings report was one of the main reasons the US stock index soared in May to a record after a difficult April. Another has revived hopes that the Federal Reserve will be able to cut key interest rates at least once or twice this year. The Fed has maintained the federal funds rate at its highest level in more than two decades.
A series worse than expected report on inflation at the beginning of the year put the possibility of such cuts in jeopardy, but some The data is more encouraging since then has come.
Treasury yields fell in May as hopes rose that the economy could reach the expected sweet spot, where it cools enough because of high interest rates to tame inflation but not to the point where it causes inflation. severe economic recession. Yields edged higher on Thursday following some mixed data on the economy.
One report shows a little more workers apply for unemployment Last week benefited more than economists expected, although the figure remained historically low. Others said homebuilders started fewer projects last month than expected, manufacturing growth in the mid-Atlantic region was weaker than expected and import prices rose more than forecast. .
Chris Larkin, managing director, trading and investing at E-Trade, said: “Today’s numbers are in line with the general theme of the week – nothing spectacular but signs of an economic recovery stabilize and cool down. Morgan Stanley.
The yield on the 10-year Treasury note rose to 4.37% from 4.35% late Wednesday. The two-year yield, moving closer to expectations for Fed action, rose to 4.78% from 4.72%.
On the failure of Wall Street, Deere fell 4% despite reporting higher-than-expected profit in the latest quarter. It cut profit forecasts for the full fiscal year below analysts’ estimates, as farmers bought fewer tractors and other equipment.
Homebuilding numbers fell after a weaker-than-expected report on housing starts. They had to pay back some big gains the day before, when hopes of lower mortgage rates sent them sharply higher. Lennar decreased by 2.1% and DR Horton slid 2.5%.
GameStop and AMC Entertainment slipped for the second straight day, pulling further back in comparison Incredible start to the week. They are aiming for investor excitement rather than any change to their financial outlook.
GameStop is down 20.72%, though it’s still up nearly 80% for the week so far. AMC Entertainment lost 10%.
Under armour swings between losses and profits after warning that its revenue will likely fall by a “low double-digit percentage” this coming financial year, due to weaker demand from wholesalers and “performance is inconsistent across our business.” The company announced a restructuring plan to cut costs and also announced a stock buyback program worth up to $500 million. It fell 0.6%.
In foreign stock markets, indexes in much of Europe fell slightly after mostly gains in Asia. Hong Kong’s Hang Seng rose 1.6% after reopening after the holiday, while Japan’s Nikkei 225 index rose 1.4%.
