A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, USA, June 1, 2022. REUTERS / Brendan McDermid
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- Target’s margin cut affects some retail stocks
- Kohl’s Rises for Sale talks to Franchise Group
- Indices: Dow 0.8%, S&P 500 1%, Nasdaq 0.9%
NEW YORK, June 7 (Reuters) – US stocks rebounded on Tuesday afternoon to end the second day in a row as technology and energy stocks rose, while Target Corp’s warning over-inventory weighed on retail stocks for much of the session.
Shares of Apple Inc. (AAPL.O) rose 1.8% despite the company having to change the connector of iPhones sold in Europe in 2024 after EU countries and lawmakers agreed on a single charging port for mobile phones, tablets and cameras.
The S&P 500 Technology Index (.SPLRCT) rose 1% and gave the benchmark its biggest boost. Shares of Microsoft Corp (MSFT.O) rose 1.4%.
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The S&P 500 (.SPNY) energy sector index rose 3.1% to its highest level since 2014, with much higher oil prices.
At the same time, shares of Target Corp (TGT.N) fell 2.3% after the retailer said it should offer deeper discounts and reduce the storage of discretionary items. Read more
Equity trading was hectic, with indices falling earlier in the day, but the market has recovered from recent sharp losses.
Recently, “we’ve had a good rebound … and overall investors are better off right now. But we’re very much in a rocking market as we’ve seen year-round,” said Tim Ghriskey, portfolio strategist. senior of Ingalls. & Snyder in New York.
“At some point, we will put funds, and the market will move higher. We have a hard time believing that this will be soon, given a number of key market issues,” he said. “Certainly what we have seen today from Target is not good news for the consumer.”
However, long-term U.S. Treasury yields fell after Target news, fueling some speculation that the worst of inflation could be in the past.
The Dow Jones Industrial Average (.DJI) rose 264.36 points, or 0.8%, to 33,180.14, the S&P 500 (.SPX) rose 39.25 points, or 0.95%, to to 4,160.68 and the Nasdaq Composite (.IXIC) rose 1138 points, or. 0.94% to 12,175.23.
Shares of Walmart (WMT.N) fell 1.2% and the S&P Retail Index (.SPXRT) fell 1%.
Consumer price data on Friday is expected to show that inflation remained high in May, although consumer base prices, which exclude volatile food and energy sectors, were likely to fall annually.
Not all retailers were in the red. Shares of Kohl’s Corp (KSS.N) rose 9.5% after news that the department store chain entered into exclusive talks with retail store operator Franchise Group Inc (FRG.O) over a sale potential that would value it at nearly $ 8 billion. Read more
Advanced issues outnumbered those that fell on the NYSE by 2.36 to 1; on the Nasdaq, a ratio of 1.69 to 1 favored the advanced.
The S&P 500 recorded 3 new 52-week highs and 30 new lows; the Nasdaq Composite recorded 35 new highs and 121 new lows.
U.S. stock market volume was 10.38 billion shares, compared to the 12.5 billion average of the full 20-day trading session.
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