Stock market today: US stocks rise after retail sales, jobs data as Walmart surges
08/15/2024 20:33
Wall Street is looking to two key signals of US consumer health, as well as more insight on the jobs market.
Stocks rose Thursday as Wall Street took in signals that pointed to a still-strong US consumer and labor market.
The Nasdaq Composite (^IXIC) popped almost 1.2% while the benchmark S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) rose about 1%.
In focus early Thursday were earnings from retail giant Walmart (WMT), as well as monthly government retail sales data and an update on jobless claims. For its part, Walmart shares surged more than 7% after a largely positive report in which it posted both earnings and revenue beats. The company also raised its full-year outlook.
Last month's retail sales, meanwhile, soared far past Wall Street's expectations in a sign that US consumers remain quite resilient. Retail sales rose 1% in July, above 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 forecast, sparking a market surge that has largely pervaded throughout this week. And they fell again this week to 227,000, shafting expectations for a pickup. As Yahoo Finance's Josh Schafer writes, as inflation continues to ebb, the jobs market is "where the action is going to be" for the Fed in the near future.
After a brutal start to August, stocks have been on a tear, including in Wednesday's session after the Consumer Price Index posted its slowest year-over-year increase since early 2021. The S&P 500 has nearly recouped all of its losses from a sell-off that began at the start of the month.
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Fresh economic data fights back against recession fears
Multiple data releases on Thursday morning showed signs of strength in the US economy, after a weak July jobs report had fueled fears that the US economy could be headed into a downturn.
Retail sales surpassed Wall Street's estimates in July, helping ease concerns of a significant slowdown in the US economy. Retail sales rose 1% in July. Economists had expected a 0.4% increase in spending, according to Bloomberg data.
Meanwhile, initial filings for unemployment insurance fell more than expected last week .New data from the Department of Labor showed there were 227,000 initial jobless claims filed in the week ending Aug. 10, down from 234,000 the week prior and below the 235,000 economists had expected.
Stock futures popped on the news, with futures tied to the major averages rising nearly 1%.
Impressive quarter out of Walmart
Walmart (WMT) shares are on the move higher after another solid quarter.
Two things I am thinking about ahead of my chat live on Yahoo Finance at 9:10am ET with Walmart CFO John David Rainey.
First, Target's (TGT) earnings numbers next week will likely not be good. Walmart is calling out another strong quarter in food, and weakness in the discretionary categories Target is known for.
And two, Walmart's international business has really turned the corner. Don't sleep on this business being a real nice profit tailwind in 2025.
