US stocks rise after retail sales, jobs data as Walmart grows

VaselineAugust 15, 2024

0 2 minutes read

US stocks rise after retail sales, jobs data as Walmart grows

Stocks rose on Thursday as Wall Street picked up on signals pointing to a still-strong U.S. labor and consumer market. The Nasdaq Composite (^IXIC) rose nearly 1.2 percent, while the benchmark S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) rose about 1 percent.

In focus early Thursday were earnings from retail giant Walmart ( WMT ) as well as monthly government data on retail sales and an update on jobless claims. In turn, Walmart shares rose more than 7% after a largely positive report in which it posted both earnings and revenue. The company also raised its full-year outlook.

Meanwhile, retail sales last month rose well above Wall Street expectations, a sign that US consumers remain quite resilient. Retail sales rose 1% in July, beating estimates for a 0.4% rise.

Also in focus is the normally routine update on weekly jobless claims. Last week, those claims fell more than estimates, sparking a market rally that has largely permeated through this week. And they fell again this week to 227,000, overturning expectations for a pickup. As Yahoo Finance’s Josh Schafer writes, as inflation continues to fall, the labor market is “where the action will be” for the Fed for the foreseeable future.

After a brutal start to August, stocks tumbled, including in Wednesday’s session, after the Consumer Price Index posted its slowest year-over-year gain since the start of 2021. The S&P 500 nearly recovered all sales losses. off that started at the beginning of the month.

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Thursday, August 15, 2024 at 15:31 GMT+2

Stocks rise at the open

Stocks rose on Thursday as Wall Street picked up on signals pointing to a still-strong U.S. labor and consumer market.

The Nasdaq Composite (^IXIC) rose nearly 1.2 percent, while the benchmark S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) rose about 1 percent.
Thursday, August 15, 2024 at 14:56 GMT+2

Fresh economic data fights recession fears

More data released Thursday morning showed signs of strength in the U.S. economy after a weak July jobs report fueled fears the U.S. economy could be headed for a recession.

Retail sales beat Wall Street estimates in July, helping ease concerns about a significant slowdown in the US economy. Retail sales rose 1% in July. Economists had expected a 0.4 percent increase in spending, according to Bloomberg data.

Meanwhile, initial claims for unemployment insurance fell more than expected last week. New data from the Labor Department showed 227,000 initial jobless claims were filed in the week ended Aug. 10, down from 234,000 the previous week and below the 235,000 economists had expected. .

Stock futures made headlines, with futures tied to the major averages up nearly 1%.
Thursday, August 15, 2024 at 13:28 GMT+2

An impressive quarter from Walmart

Shares of Walmart ( WMT ) are rising after another solid quarter.

Two things on my mind ahead of my live chat on Yahoo Finance at 9:10 a.m. ET with Walmart CFO John David Rainey.

First, Target’s ( TGT ) earnings numbers next week probably won’t be good. Walmart touts another strong quarter in grocery and weakness in the discretionary categories that Target is known for.

And secondly, Walmart’s international business has really turned the corner. Don’t sleep on this business being a really nice windfall in 2025.