Retail, industrial firms boost stocks
U.S. stocks meandered Tuesday but finished mostly higher, with retailers and industrial companies up. A jump in metals prices helped mining and materials firms. Asian markets jumped after the North Korean government said it was open to talks with the U.S. about ending its nuclear program.
Stocks have edged higher on Wall Street over the last three days, but they’ve frequently bounced up and down as investors grappled with the Trump administration’s stance on trade and whether the proposed tariffs on steel and aluminum imports will push up inflation in the U.S. and lead other countries to retaliate in a way that would hurt economic growth and corporate profits.
Kristina Hooper, chief global markets strategist for Invesco, said Wall Street is having trouble deciding if the tariffs are more of a bargaining chip in trade negotiations, as President Trump has suggested at times, or if they are a goal on their own.
“When it seemed as though it was just rhetoric [Monday], markets relaxed,” she said. Since then, “I think concerns have grown that maybe this isn’t just a bargaining tactic.”
Stocks fell 3.7% during a three-day losing streak last week after Trump announced his tariff plans. Other countries objected, and the European Union announced plans to put tariffs on some U.S.-made goods. Companies that make most of their sales overseas have fared the worst, while U.S.focused companies have regained their losses from that three-day stretch.
On Tuesday, retailers including Amazon, Best Buy and Lowe’s gained ground, but Target slid 4.5% to $71.79 after it reported that costs associated with overhauling its stores and investing in its website affected its earnings and forecasts for the current year. Target also said it is raising minimum starting pay for workers for the second time in less than a year.
Nordstrom rose 1.1% to $52.49 after the department store rejected an offer from the Nordstrom family to take it private, saying the offered price of $50 a share was too low.
Gold rose $15.30, or 1.2%, to $1,335.20 an ounce. Silver climbed 37 cents, or 2.3%, to $16.78 an ounce. Copper rose 3 cents to $3.16 a pound. Shares of gold and copper mining company FreeportMcMoRan advanced 2.8% to $18.70.
Benchmark U.S. crude rose 3 cents to $62.60 a barrel. Brent crude rose 25 cents to $65.79 a barrel. Wholesale gasoline stayed at $1.93 a gallon. Heating oil rose 1 cent to $1.90 a gallon. Natural gas rose 5 cents to $2.75 per 1,000 cubic feet.
Bond prices edged up. The yield on the 10-year Treasury note fell to 2.87% from 2.88%.