Dow, S&P, Nasdaq rally after solid retail sales, factory data

Walmart cut its full-year profit outlook due to inflation headwinds

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U.S. stocks jumped Tuesday as investors digested a round of fresh retail earnings and economic data along with comments from Federal Reserve Chairman Jerome Powell. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 31037.68 +69.86 +0.23%
HD THE HOME DEPOT INC. 283.58 -0.15 -0.05%
WMT WALMART INC. 125.13 +0.88 +0.71%

Home Depot shares helped lift the Dow Jones Industrial Average over 430 points or 1.3% after profits and sales exceeded estimates. Walmart shares fell after reporting a 25% drop in profits as inflation remains a headwind for its shoppers. 

The S&P 500 and Nasdaq Composite also gained by 2% and 2.7%, respectively helped by tech and material stocks. 

Fed Chairman Jerome Powell (Fox News Channel)

Powell, during an interview with the Wall Street Journal, indicated policymaker's main goal is stomping out inflation and ongoing rate hikes are appropriate with 50 basis point increases on the table at forthcoming meetings. 

Ahead of his remarks, retail sales data for April rose 0.9%, despite inflation, while industrial production rose 1.1% and manufacturing output 0.8% both better than expected, suggesting an improving economy.  

Ticker Security Last Change Change %
SP500 S&P 500 3845.08 +13.69 +0.36%
I:COMP NASDAQ COMPOSITE INDEX 11361.851785 +39.61 +0.35%
XLK TECHNOLOGY SELECT SECTOR SPDR ETF 130.12 +1.11 +0.86%
XLB MATERIALS SELECT SECTOR SPDR ETF 73.08 +0.45 +0.62%

Citigroup shares rallied after Warren Buffett disclosed a new 8% stake in the bank worth nearly $3 billion. 

Ticker Security Last Change Change %
C CITIGROUP INC. 46.15 -0.46 -0.99%

Twitter shares remain in focus after CEO Elon Musk set a key condition for his pending $44 billion purchase of Twitter to go through: transparency on the number of fake or spam accounts.

Musk tweeted, "20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher. My offer was based on Twitter’s SEC filings being accurate."

He followed up by pushing a Twitter poll on whether the percentage of daily users, 95% being unique humans, were accurate. 

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Ticker Security Last Change Change %
TWTR TWITTER INC. 38.21 -0.17 -0.44%

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Homebuilders was also in focus after the National Association of Homebuilders Sentiment Index fell for the fifth straight month. 

Ticker Security Last Change Change %
TOL TOLL BROTHERS INC. 47.25 -0.88 -1.83%
LEN LENNAR CORP. 76.59 -0.69 -0.89%
MTG MGIC INVESTMENT CORP. 12.87 +0.21 +1.66%
DHI D.R. HORTON INC. 72.04 -0.46 -0.63%

"The housing market is facing growing challenges," said NAHB Chief Economist Robert Dietz. "Building material costs are up 19% from a year ago, in less than three months mortgage rates have surged to a 12-year high and based on current affordability conditions."

In commodities, oil slipped by 1.5% $112.40 per barrel, while gas prices rose to $4.52 per gallon per AAA, a fresh record. 

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In cryptocurrencies, Bitcoin crossed back above the $30,000 level. 

The Associated Press contributed to this report.