Technology and energy stocks surged late Tuesday to close the day higher for the second day in a row, but Target Corp’s warning over excess inventory dragged on retail equities for much of the session. Despite news earlier in the day that Apple must alter the connector on iPhones sold in Europe by 2024 after EU countries and politicians agreed to a single charging port for mobile phones, tablets, and cameras, Apple stock rose 1.8 percent.
Equity trading was choppy, with indexes down early in the day, but the market has been recovering from recent steep losses. Recently, “we’ve had a nice bounce … and in general investors are feeling better right now. But we are very much in a seesaw market as we’ve seen all year,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
The S&P 500 technology index gained 1%, giving the benchmark index its largest boost. The stock of Microsoft Corporation increased by 1.4 percent. The S&P 500 energy sector index jumped 3.1% to end at its highest level since 2014, with oil prices sharply higher. At the same time, shares of Target Corp fell 2.3% after the retailer said it would have to offer deeper discounts and cut back on stocking discretionary items.
“At some point, we will put in a bottom, and the market will move higher. We have a hard time believing that’s any time soon, given a number of fundamental issues overhanging the market,” he said. “Certainly what we’ve seen today from Target isn’t good news in terms of the consumer.” Long-dated U.S. Treasury yields tumbled after the Target news, however, as it fueled some speculation that the worst of inflation may be in the past.
Consumer price data on Friday is expected to show that inflation remained elevated in May, though core consumer prices, which exclude the volatile food and energy sectors, likely ticked down on an annual basis. Not all retailers were in the red. Kohl’s Corp shares jumped 9.5% after news the department store chain entered exclusive talks with retail store operator Franchise Group Inc over a potential sale that would value it at nearly $8 billion.
The Dow Jones Industrial Average rose 264.36 points, or 0.8%, to 33,180.14, the S&P 500 gained 39.25 points, or 0.95%, to 4,160.68 and the Nasdaq Composite added 113.86 points, or 0.94%, to 12,175.23. Shares of Walmart fell 1.2%, and the S&P retail index was down 1%.
Advancing issues outnumbered declining ones on the NYSE by a 2.36-to-1 ratio; on Nasdaq, a 1.69-to-1 ratio favored advancers. The S&P 500 posted 3 new 52-week highs and 30 new lows; the Nasdaq Composite recorded 35 new highs and 121 new lows. Volume on U.S. exchanges was 10.38 billion shares, compared with the 12.50 billion average for the full session over the last 20 trading days.
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