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.

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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%
BABA ALIBABA GROUP HOLDING LTD 258.83 +1.87 +0.73%

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%.

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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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