Stocks surge to record after strong Walmart, Home Depot earnings

Stocks slumped into negative territory Tuesday after earlier in the session hitting record highs following strong housing data and better-than-expected retail earnings.

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The S&P 500 climbed as much as 0.39% in the opening minutes of trading, eclipsing its intraday high of 3,393.52, before turning lower. The benchmark index needs to finish above 3,386.15 to close at a record peak.

Meanwhile, the Nasdaq Composite gained as much as 0.7%, touching its own record high, and the Dow Jones Industrial Average climbed 0.17% before both indexes fell into negative territory.

Ticker Security Last Change Change %
SP500 S&P 500 3381.79 -0.20 -0.01%
I:COMP NASDAQ COMPOSITE INDEX 11124.120283 -5.60 -0.05%
I:DJI DOW JONES AVERAGES 27705.19 -139.72 -0.50%

Looking at the economy, housing starts rose 23% to a seasonally adjusted annualized rate of 1.496 million, beating the 1.24 million that was anticipated by analysts surveyed by Refinitiv. Building permits, meanwhile, climbed 19% to 1.495 million, ahead of the 1.32 million that was expected.


The results sent shares of homebuilders, like Toll Brothers Inc., Pulte Group and Lennar Corp. higher.

Ticker Security Last Change Change %
TOL TOLL BROTHERS 43.12 +0.96 +2.29%
PHM PULTE CORPORATION 46.95 +0.52 +1.11%
LEN LENNAR 77.97 +0.90 +1.17%

On the earnings front, Dow component Home Depot Inc. reported better-than-expected top and bottom lines as U.S. comparable sales rose 25% from a year ago.

Fellow Dow member Walmart Inc. said online sales rose 97% versus last year, helping drive a 79% jump in profit.

Ticker Security Last Change Change %
HD THE HOME DEPOT INC. 285.56 -2.68 -0.93%
WMT WALMART INC. 134.41 -1.19 -0.88%
BJ BJS WHSL CLUB HLDGS INC 43.29 +0.52 +1.22%

BJ’s Wholesale Club Inc. and Alibaba Group are among the companies reporting ahead of Wednesday’s opening bell.

Meanwhile, Boeing job cuts will extend beyond its initial plan to eliminate 10% of its workforce. The company is offering workers, mostly in its commercial airplanes unit, services division and corporate operation, a second voluntary layoff opportunity.

Oracle is in talks to acquire the U.S., Canadian, Australian and New Zealand assets of the social-media app TikTok from Chinese owner ByteDance, according to CNBC, citing a person familiar with the matter.

Ticker Security Last Change Change %
BA BOEING COMPANY 171.35 -0.66 -0.38%
ORCL ORACLE CORPORATION 55.91 +1.92 +3.55%
TSLA TESLA INC. 1,877.74 +42.10 +2.29%

Elsewhere, Tesla shares continued to zoom higher, and were trading above $1,900 apiece for the first time.

Looking at commodities, gold climbed $21.50 to $2,020.20 an ounce while West Texas Intermediate crude oil slid 72 cents to $42.16 a barrel.

U.S. Treasurys were little changed with the yield on the 10-year note holding near 0.68%.


In Europe, Germany’s DAX was trading up 0.34% while France’s CAC and Britain’s FTSE fell 0.07% and 0.34%, respectively.

Asian markets finished mixed with China’s Shanghai Composite adding 0.36%, Hong Kong’s Hang Seng edging up 0.08% and Japan’s Nikkei slipping 0.2%.

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