Friday's Market Minute: Retail Earnings & Eco Data Boost Stocks

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Investors received some relief this week as stocks reversed their declines. Following seven-week losing streaks out of the S&P 500 and Nasdaq-100 and an eight-week streak by the Dow Jones Industrial Average, the major U.S. stock indices saw their fifth consecutive day in the green Thursday in a rally spurred by strong earnings reports out of retail companies and positive inflation data.

Retailers including Macy’s, Ulta, Williams-Sonoma, Dollar Tree, and Dollar General posted positive quarterly results with favorable guidance and saw their shares gain as a result. That goes to show that despite persistent elevated inflation – which may finally be peaking - the consumer is still buying. 

While the second estimate for first-quarter GDP fell by one-tenth of a percent from the first estimate’s contraction to 1.5%, consumer spending rose by 3.1% versus the previous estimate’s 2.7% growth rate. April’s personal consumption expenditure, taken from Personal Income and Outlays, also rose month-over-month, representing slowing growth but still beating estimates. Some indicators are even showing slowing inflation. April’s PCE price index fell sharply to 0.2% from 0.9%, but hold steady at 0.3% for the core. The annual rates also mark slowing inflation from March. 

This relief may be temporary. After all, housing data is still weak; however, investors and traders alike are primed for any kind of positive market action especially ahead of the holiday weekend. Don’t forget that markets are closed Monday, May 30, for Memorial Day.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.