Stocks move up on positive retail news
U.S. stocks rallied Thursday after retail behemoth Walmart reported its best sales growth in more than a decade and Chinese and American officials agreed to hold talks in an attempt to resolve the trade dispute between the two countries. The dollar fell with Treasuries, and gold and oil rose.
All major equity benchmarks were higher. The S&P 500 Index climbed, led by telephone and consumer staples shares, and the Dow Jones Industrial Average added almost 400 points, or
1.6 percent. Food retailers posted their best gain since November after Walmart, the top performing S&P
500 company, said grocery sales spurred its strong results.
“The consumer is in great shape, highlighted by Walmart results,” said Cliff Hodge, director of investments at Cornerstone Wealth in Charlotte, N.C. “The market is underestimating the strength in the U.S. economy in the second half of the year. Some announcements on trade, whether it’s with NAFTA, the EU and China, or all of the above, can be catalysts for the next leg higher.”
Chipmakers were the weakest group in the S&P 500 ahead of earnings reports from Nvidia Corp. and Applied Materials Inc., which are expected after the market closes. Mining stocks and commodities rebounded from Wednesday’s slide as silver and copper gained.
The possibility of a breakthrough in the U.S.China trade fight helped shake off some of the elevated caution that’s infected markets, particularly in developing nations, over the past week as Turkey has plunged into a currency crisis.
“Positive news out of Washington last night of a possible resumption in trade talks with China has changed the tide of negative sentiment today,” Chris Zaccarelli, chief investment officer at Independence Advisor Alliance, wrote in a note.