Retailer, boost boosts Wall Street rally | Whuff News

  • Best Buy is up, seeing a decline in annual sales
  • Dollar Tree downgrades to lower FY profit forecast
  • Manchester United is progressing in the sales report

NEW YORK, Nov 22 (Reuters) – U.S. stocks settled on Tuesday in light trade as sales forecasts by Best Buy eased concerns that higher prices will lead to a bad holiday shopping season while a bounce in oil prices helped lift energy shares.

Best Buy Co Inc (BBY.N) shot up as the best-performing stock in the S&P 500 (.SPX) index, after the retailer forecast a smaller decline in annual sales than previously announced and expressed confidence in increased deals and discounts. to attract more customers.

Gains at Best Buy helped boost the S&P 500 retail (.SPXRT) index.

In contrast, Dollar Tree Inc ( DLTR.O ) fell as the worst-performing component of the S&P 500, which pared gains in the retail index as the discount retailer cut its second-year earnings forecast.

“If you take the progression of income and consumers out, the upper half of that is inelastic in other costs rising to a point or another where the lower half is going to be inelastic,” said Shawn Cruz, a trade expert. at TD Ameritrade in Chicago.

“So the Dollar Trees of the world can’t afford to pass on those costs so they’re going to be hit hard.”

According to preliminary data, the S&P 500 (.SPX) gained 53.72 points, or 1.36%, to end at 4,003.66 points, while the Nasdaq Composite (.IXIC) gained 149.83 points, or 1.36%. , at 11,174.34. The Dow Jones Industrial Average (.DJI) rose 395.94 points, or 1.18%, to 34,096.22.

Also providing support was the energy sector, which rallied after two sessions of declines as Saudi Arabia said OPEC+ was sticking to output cuts, shooting down a report on Monday that said the alliance was considering raising output that sent crude prices sharply lower.

As investors continue to try to gauge the Federal Reserve’s rate hikes, Cleveland Fed President Loretta Mester reiterated Tuesday that inflation remains important to the central bank, a day after supporting a small rate hike in December. Kansas City Chiefs Esther George said a “quiet” labor market that saw little churn could ease inflationary pressures.

Investors are also waiting for the words of the President of St. Louis Fed Reserve James Bullard on Tuesday minutes before the Fed’s November meeting scheduled for Wednesday.

Volume was light this week and is likely to decrease heading into the Thanksgiving holiday on Thursday, with the US stock market open for the half session on Friday.

Dow share Walgreens Boots Alliance Inc (WBA.O) rose after Cowen & Co upgraded the drug distributor’s stock, citing its health services business pressure.

Shares in Manchester United ( MANU.N ) jumped late in the session after Sky News reported that the Glazer family, which owns the football club, was exploring financial options that could include an outright sale.

Agilent Technologies Inc (AN) jumped after the application-focused solutions company posted fourth-quarter earnings.

A decline in the dollar and US Treasury yields also helped support food risks.

Reporting by Chuck Mikolajczak; editing by Grant McCool

Our standards: The Thomson Reuters Trust Principles.

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