Dow Recovers from Worst Day of '19
Stocks rose on Thursday, making back some of the steep losses in the previous session, as retail giant Walmart's earnings and strong retail sales figures led investors to believe the U.S. consumer could help the country avoid a recession.
The Dow Jones Industrials leaped 120.96 points by noon to 25,600.38
The S&P 500 regained 12.74 points to 2,853.34
The NASDAQ recouped 14.18 points to 7,788.12
The Commerce Department said Thursday that retail sales rose solidly in July and beat expectations. Consumers spent more at retail stores and restaurants last month, a sign that fears of a global slowdown that have roiled financial markets haven't soured consumer optimism.
Walmart reported better-than-expected earnings and raised its outlook for the full year, sending its stock 5.5% higher Thursday. The retailer saw growth in its core domestic business as well as online operations, marking the 20th consecutive quarter of sales gains in the U.S.
Cisco shares plunged 7% after it said future earnings would be lighter than expected because of a “significant impact” from the U.S.-China trade war. The tech giant also said China revenue fell 25% last quarter on an annualized basis.
Shares of General Electric dropped more than 10% after Madoff whistleblower Harry Markopolos said he has discovered “an Enronesque business approach that has left GE on the verge of insolvency.”
Markets erased earlier losses in the morning after Hua Chunying, aspokesperson at China's Ministry of Foreign Affairs, said China “hopes the U.S. will meet China halfway and implement the consensus reached by the two leaders during their meeting in Osaka,” fueling optimism for a resolution between the two countries.
Also helping the market on Thursday were a slew of economic data that showed a relatively strong U.S. economy. Retail salesrose solidly in July and beat expectations, which is a sign of consumer optimism. The U.S. productivity also grew a healthy 2.3% rate in the second quarter.
Prices for the benchmark 10-year U.S. Treasury gained ground, easing yields to 1.54% from Wednesday's 1.58%. Treasury prices and yields move in opposite directions
Oil prices dipped 60 cents to $54.63 U.S. a barrel.
Gold prices recovered $3.50 to $1,531.30 U.S. an ounce.