Stocks higher as Home Depot earnings fuel retail optimism

By MarketsFOXBusiness

US stocks decline as banks, energy companies tumble

FBN’s Charles Payne discusses the decline in bank stocks and why investors should focus on the S&P 500.

Stocks were higher Tuesday as Turkey’s lira weakened only slightly following its recent plunge, which caused investors to turn risk adverse.

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The risk aversion sent U.S. stocks lower on Monday, but with the lira stabilizing on Monday investors could turn their attention to the strong U.S. economy.

The Dow Jones Industrial Average jumped 112.22 points, or 0.45%, to 25,299.92. The S&P 500 was up 18.03 points, closing at 2,839.96. The Nasdaq Composite gained 51.19 points, or 0.65%, to 7,870.89.

While earnings season is winding down, retail earnings were the focus on Tuesday, headlined by Dow component Home Depot. The home improvement retailer reported earnings and revenue that beat the Wall Street estimate, led by a rebound in its seasonal business.

I:DJIDOW JONES AVERAGES25886.01+306.62+1.20%
SP500S&P 5002888.68+41.08+1.44%
I:COMPNASDAQ COMPOSITE INDEX7895.993811+129.38+1.67%

“Retailers are thriving for a few reasons: the US economy is strong, and U.S. consumers confidence is at its highest level since 2000, lifting retail sales almost 7% year-over-year from June," Jonathan Hoenig of told FOX Business in a statement. “Retailers have also been responding to Amazon by closing stores, which is improving their bottom line.”

In economic news, data on imported goods were released, with costs flat in July. But the annual rate of import inflation jumped to 4.8 percent, its highest since February 2012, according to MarketWatch. Costs were led by energy – excluding fuel the rise was only 1.3 percent. On an annual basis, export prices were up 4.3 percent.

Commodities were mixed.

FOX Business’ Ken Martin contributed to this article.

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