The Dow is on a Winning Streak, Closing Strong For the Fifth Day in A Row

The index closed at its highest on Tuesday since April, with retail stock fueling the rally.

The-Dow-is-on-a-Winning-Streak-Closing-Strong-For-the-Fifth-Day-in-A-Row
Interested in the Monthly Monitor Investment Letter?

Loading

The Dow Jones Industrial Average has closed higher for five trading sessions straight. On Tuesday, the Dow saw gains and rose to its highest level since late in April. Retail stocks drove the momentum and fueled the rally.

The Dow ended the session at 34,152.01, climbing by 239.57 points. Meanwhile, The S&P 500 also settled higher at 4,305.20, climbing by 8.06 points. The Nasdaq was the only index to end lower at 13,102.55, falling by 25.50 points.

Monday saw wins for the Dow and S&P as well, each rising by 0.5 percent and 0.4 percent, respectively.

Stocks initially were a little wobbly, but stocks climbed higher as retail shares turned things around to bring the S&P and the Dow to a three-month high.

Walmart and Home Depot led the rally and were responsible for over half of the gains for the blue-chip index. Walmart shares gained 5.1 percent after the company reported robust profits for the fiscal second quarter. The retailer also raised its outlook for the year.

Home Depot was the second-highest Dow performer on Tuesday, surging by 4.1 percent after the home improvement company also gave a positive outlook for the year. The Atlanta, Georgia-based retailer also beat expectations for the second quarter.

The retailers’ strong earnings announcement fueled a wider rally for retail stocks, driving the consumer staples sector up by 2.3 percent. The sector was the best S&P 500 performer.

Other strong performers on Tuesday were Target and Lowe’s, each gaining 4.6 percent and 2.9 percent, respectively. Kohl’s also saw gains of 6.1 percent. Those three retailers are expected to report their second fiscal quarter earnings this week.

Best Buy and Ross Stores also saw their shares rise, at 4.5 percent and 2.8 percent, respectively. But, retailer “meme stocks” saw the largest gains, including Bed, Bath, and Beyond, which surged by 29 percent at the end of the trading session. Overstock also came in full speed ahead by 11.8 percent.

Economic data also came in on Tuesday, highlighting that housing starts in July fell by 9.6 percent. In the meantime, building permits were 1.3 percent lower last month.

But, according to the Federal Reserve, industrial production in the U.S. rose last month by 0.6 percent. That was better than analysts’ expectations which forecasted a milder rise of 0.3 percent.

On Wednesday, the central bank is expected to release minutes from its last policy meeting.

LEAVE A REPLY

Please enter your comment!
Please enter your name here