- Best Buy rises, sees smaller annual sales decline
- Dollar Tree falls on lower fiscal year earnings forecast
- Manchester United rises after sale report
- Dow up 1.18%, S&P 500 up 1.36%, Nasdaq up 1.36%
NEW YORK, Nov 22 (Reuters) – U.S. stocks rose on Tuesday, with the S&P 500 closing at its highest level in two and a half months, as a Best Buy sales forecast eased concerns that high inflation would lead to to some depressing Christmas shopping. while a rebound in oil prices helped boost energy stocks.
Best Buy Co. Inc. (BBY.N) soared 12.78% as the best-performing stock in the S&P 500 (.SPX) index, after retail forecast a smaller drop in annual sales than previously announced and expressed confidence that an increase in sales and discounts will attract more customers.
Gains at Best Buy helped boost the retail S&P 500 (.SPXRT) rate 1.21%.
By contrast, Dollar Tree Inc. (DLTR.O) fell 7.79% as the worst-performing component of the S&P 500, also capping gains for the retail index as the discount retailer cut its annual earnings forecast for the second time.
“If you take the revenue and consumer continuum, the top half is relatively inelastic for some costs to rise by one measure or another, where the bottom half will be more sensitive,” said Shawn Cruz, chief operating strategist. at TD Ameritrade in Chicago.
“So the Dollar Trees of the world don’t really have a lot of ability to pass through those costs, so they’re going to be hit hard.”
The Dow Jones Industrial Average (.DJI) The S&P 500 rose 397.82 points, or 1.18%, to 34,098.1. (.SPX) gained 53.64 points, or 1.36%, to 4,003.58 and the Nasdaq Composite (.IXIC) added 149.90 points, or 1.36%, to 11,174.41.
The S&P 500 closed at its highest level since September 1. 12
Also providing support was the energy sector, which rose 3.18% after two sessions of declines, as Saudi Arabia said OPEC+ was keeping with production cuts, shooting down a report Monday that the alliance was considering increasing production, sending crude prices sharply lower.
As investors continue to try to gauge the path of the Federal Reserve’s rate hikes, Cleveland Fed President Loretta Mester has reiterated on Tuesday that reducing inflation remains critical for the central bank, a day later secondary a smaller rate hike in December. Kansas City President esther george He said the central bank may need to raise interest rates higher and keep them there longer to dampen consumer demand and cool inflation.
Investors were also awaiting comments from St. Louis Federal Reserve Bank President James Bullard on Tuesday ahead of minutes from the Fed’s November meeting scheduled for Wednesday.
Volume was light during the session and is likely to ease ahead of the Thanksgiving holiday on Thursday, with the US stock market open for half a session on Friday.
Volume on US exchanges was 9.45 billion shares, compared with an average of 11.75 billion for the full session over the past 20 trading days.
Dow component Walgreens Boots Alliance Inc (AMB.O) rose 2.96% after Cowen & Co upgraded shares in drug distributors, citing its health care services business push.
manchester united (MANU.N) Shares rose at the end of the session after Sky News reported The Glazer family, which owns the soccer club, was exploring financial options that could include a full sale and closed up 14.66%.
Agilent Technologies Inc. (A) rose 8.08% after the application-centric solutions company posted upbeat fourth-quarter revenue.
decreases in Dollars and US Treasury yields also helped support risk appetite.
Advancing issuances outnumbered declining ones on the New York Stock Exchange by a ratio of 3.40 to 1; on Nasdaq, a 1.56-to-1 ratio favored advancers.
The S&P 500 posted 24 new 52-week highs and 3 new lows; The Nasdaq Composite posted 108 new highs and 224 new lows.
Reporting by Chuck Mikolajczak; edited by Grant McCool
Our standards: The Thomson Reuters Trust Principles.