Retailers Were Big Winners on Wall Street Tuesday

Best Buy jumps 12.7% after strong earnings reports
By Newser Editors and Wire Services
Posted Nov 22, 2022 3:48 PM CST
Strong Earning Reports Send Retail Stocks Higher
The Best Buy store at the Mall of New Hampshire.   (AP Photo/Charles Krupa, File)

Stocks rose on Wall Street and solid earnings helped jolt a mix of retailers higher ahead of the Thanksgiving holiday. The S&P 500 rose 53.64 points, or 1.4%, to 4,003.58 Tuesday. The Dow Jones Industrial Average rose 397.82 points, or 1.2%, to 34,098.10, and the Nasdaq gained 149.90 points, or 1.4%, to close at 11,174.41 %. Best Buy soared 12.7% after the Minneapolis-based consumer electronics chain did better than analysts expected and said a decline in sales for the year will not be as bad as it had projected earlier, the AP reports. All the company sectors in the S&P 500 headed higher, with technology and financial stocks driving much of the rally.

Chipmaker Nvidia rose 4.7% and Charles Schwab rose 1.6%. Energy stocks moved higher along with a 0.4% rise in US crude oil prices. Chevron rose 2.6%. Bond yields mostly fell. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.76% from 3.84% late Monday. Dell Technologies rose 6.7% after the computer maker reported strong third-quarter profit and revenue. Zoom Video slumped 3.9% after giving investors a weak profit and revenue forecast. Several retailers made particularly strong gains following solid financial results. Abercrombie & Fitch surged 21.7% and American Eagle jumped 17.9%.

Nearly every company in the S&P 500 has reported their latest financial results, according to FactSet, and the results have been mixed. Companies in the index have reported overall earnings growth of about 2%, but have also issued various warnings about weaker consumer demand and crimped sales as inflation continues squeezing consumers. Worries about a recession continue hanging over the global economy and markets. The Organization for Economic Cooperation and Development is forecasting modest economic growth globally this year and more tepid growth in 2023. Russia's war in Ukraine continues threatening energy supplies and key food commodities including wheat. A resurgence of COVID-19 cases in China continues threatening the world's second-largest economy and global supply chains.

(Read more stock market stories.)

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