Wall Street picks up and opens higher-20 May 17, 2022 16:19

Wall Street signboard in New York (AFP / ANGELA WEISS)

Wall Street signboard in New York (AFP / ANGELA WEISS)

Wall Street regained color on Tuesday and soared, trying to stop a six-week continuous loss on the S & P 500 and a seven-week continuous loss on Nasdaq.

Around 2:00 pm Greenwich Mean Time, the Dow Jones rose 0.91%, the Nasdaq 1.98%, and the S & P 500 up 1.35%.

The day before, the index mixed and concluded, always worried about the risks of inflation and recession. Dow Jones grabbed 0.08% with 32,223.42 points. High-tech Nasdaq fell 1.20% to 11,662.79 points. The S & P 500 fell 0.39% to 4,008.01 points.

The index, which had already surged before opening, responded positively to US retail sales, which rose 0.9% as expected in April, suggesting that demand remains strong despite inflation.

In addition, sales in March were revised upward from the originally announced 0.5% to 1.4%.

However, analysts pointed out that the increase in sales reflects not only the power of consumers, but also the rise in prices.

“Consumers’ tolerance for high inflation will continue to be tested, new rises in gasoline prices and more difficult financial conditions will continue to drive households to invest in expensive commodities,” said Lydia Busur of Oxford Economics. Will put pressure on you. ”

However, according to economists, “strong fundamentals, including strong growth in labor income and accumulation of savings, must continue to support consumer spending.”

Yields on 10-year Treasuries, which fell the day before for fear of a recession, rose again, approaching 3% again at 2.97%.

In the afternoon, investors were scheduled to go see an interview with Federal Reserve Chairman Jerome Powell hosted by The Wall Street Journal.

Meanwhile, Twitter lost 0.78% to $ 37.68 before it opened, but social networks are at the center of negotiations with Elon Musk and are vying for acquisitions.

Tesla’s boss is again conditioned on hostile offers for “bots” and spam guarantees. He said the operation would not be completed until there was evidence that less than 5% of the accounts were fake.

The title of electric vehicle maker rose 4.36% to $ 756.

On the distribution side, supermarket giant Wal-Mart announced a 25% decline in profits, down 8.86% to $ 135 after lowering forecasts for the rest of the year.

The group believes that food, gasoline and salary costs have increased as a cause of this development.

Meanwhile, the DIY chain Home Depot (+ 3.42% to $ 306) has announced an increase in full-year sales forecasts (+ 3%). Analysts also expected first-quarter sales to decline by more than 2%, but increased by 2.2% and earnings per share were higher than expected.

Citigroup’s securities were highly sought after (+ 5.52% to $ 50) after the holdings of billionaire Warren Buffett’s Berkshire Hathaway acquired a significant stake in the bank.

The fund has announced that it has acquired approximately 55 million shares of Citigroup for approximately $ 3 billion.

Therefore, in Berkshire’s portfolio, Citi joins Bank of America. This is the second holding of the fund after Apple, but especially with Ally Financial, US Bancorp, Mastercard and Visa. Meanwhile, Warren Buffett offloaded Wells Fargo shares in the first quarter.

United Airlines was up 6.27% to $ 46.27. According to CNBC, UAL will be able to fly 52 Boeing 777s again after a green light from the Aviation Regulatory Authority (FAA).

The company also said it expects travel demand to increase by 25% compared to 2019 before the pandemic.