W.all Streets have all but recouped last night’s losses and were nudging toward an upside yesterday after some booming retailers reported strong second-quarter earnings.
Dow and S&P futures each fell less than 1% in pre-market trading.
Retail giants Walmart and Home Depot, whose quarterly financial results often give investors insight into broader consumer habits, both reported strong second-quarter earnings and saw market gains ahead of opening day. boosted.
Walmart’s revenue was $5.15 billion, or $1.77 after one-time charges and fees, easily beating Wall Street’s $1.62 per share target. Sales also beat analysts’ expectations, and the stock rose more than 4% before the opening.
Home Depot reported record quarterly profits and earnings, but the stock fell less than 1% as the home improvement retailer maintained its guidance for the year.
Shares hit a one-and-a-half-year high in July, but some analysts say prices don’t adequately reflect real risks.
“It doesn’t seem to matter what the news is. There’s just a huge desire to buy stocks. And keep buying,” said Clifford Bennett, chief economist at ACY Securities. “The story that the bottom is already priced in seems a bit premature. If the market goes down again after all this long positions, it will go down with a thunderous effect. Buyers beware. .”
European stocks rose and Asian markets were mixed a day after China reported negative economic data and analysts warned that volatility could be ahead.
Japan’s benchmark Nikkei 225 was little changed, ending at 28,868.91. South Korea’s Kospi rose 0.2% to 2,533.52. Australia’s S&P/ASX 200 was up 0.6% at 7,105.40. Hong Kong’s Hang Seng reversed course, down 1.1% at 19,830.52, while the Shanghai Composite saw him up nearly 0.1% at 3,277.88.
Markets have reacted to the news that China’s central bank has cut key interest rates, acknowledging that more needs to be done to strengthen the economy. and the latest warning for markets already strained by recession fears in the US and elsewhere.
The news weighed on energy prices on Monday as China is the world’s second-largest oil consumer, but rose slightly yesterday. US crude rose 74 cents to $90.15 a barrel. International benchmark Brent crude rose 43 cents to $95.53.
Investors around the world are worried that the US Federal Reserve (Fed) could hit the brakes too quickly, sending the economy into recession. Signs that inflation could peak or recede have helped allay some of those concerns.
“The lack of direction is going to plague investors until there are clear signs that inflation is abating. It will take time because we need to confirm.The lack of clear direction drives the market up and down,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Investors are also watching closely how inflation affects businesses and consumers. Spending has slowed and the economy as a whole has already contracted for the second quarter in a row.
Target will report results on Wednesday, following Walmart and Home Depot. The US Department of Commerce will also release his July retail sales report on Wednesday. Economists surveyed by FactSet said he expects sales to grow by just 0.2% from June, when he increased by 1%.
In currency trading, the US dollar rose from ¥133.27 to ¥134.39. The euro fell to $1.0130 from $1.0165. MDT/AP