US equities rise as optimism over jumps in retail overshadows fears of inflation

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

  • Shares rose on Tuesday, anchored by the discretionary consumer sector.
  • Inventories rose after retail sales in October by 1.7%, exceeding expectations.
  • Retail sales power suggests that consumers have started shopping on vacation, Barclays says.

U.S. stocks ended higher Tuesday as an increase in monthly retail sales suggests that consumers in the world’s largest economy have coped with price increases on goods and services relatively well and a supply chain crisis that is hurting several industries.

The S&P 500 narrowly missed a closing record, led higher by the discretionary consumer stocks during the session. The sector is the best so far this month, even though consumer price inflation is at its highest in 31 years. Home Depot emerged on Tuesday as third-quarter earnings and sales for the home improvement retailer exceeded expectations. Walmart also beat quarterly expectations, but the stock ended the day lower.

Here is where US indices stood at 16:00 on Tuesday:

Shares found support from government data showing retail sales rose 1.7% last month, better than the expected 1.1% rise in a Bloomberg survey of economists. The report also showed that consumer spending increased relative to the pace of September.

“In our view, part of the jump in sales in October is likely to reflect a move forward in holiday shopping, especially in light of reports of shipping delays. That said, the steady increase in sales over the past three months suggests a broader improvement in final sales and spending, ”said Pooja Sriram, an economist covering the United States at Barclays, in a note.

Meanwhile, industrial production rose in October and rose by 1.6% in October.

Around the markets, gold fluctuated lower, down 0.6% to $ 1,850.22 per ounce. The 10-year interest rate rose to 1.635%.

Oil prices were mixed. West Texas Intermediate crude oil fractionated at $ 80.86 per barrel. Brent, the oil’s international benchmark, rose 0.6% to $ 82.57.

Bitcoin fell 6.5% to $ 59,569.59.

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