U.S. Indexes Soar After Three Days of Lackluster Trading

Barry Adams
17 May, 2022
New York City

U.S. stocks advance after three days of stable prices and the rising prospects of easing restrictions in Shanghai. 

The S&P 500 index increased 1.5% to 4,068.33 and the Nasdaq Composite index soared 2.08% to 11,905. 57. 

U.S. stocks jumped after three days of lackluster trading and traders looked for bargains in tech stocks. 

Federal Reserve Chairman Jerome Powell is scheduled to deliver his comments on the central bank's plan to tackle rising inflation at a Wall Street Journal conference at 2 p.m. ET. 

The advance estimate of retail and food services sales adjusted for seasonal factors but not adjusted for price increased 0.9% in April from the previous month and jumped 8.2% from April 2021. 

Retail and food services sales in April were $677.7 billion.  

The March retail sales were revised higher to 0.7% from the previous month and 1.4% from a year ago. 

April retail trade sales increased 0.7% from March and increased 6.7% from a year ago. Gasoline sales jumped 36.9% from a year ago and food services and drinking places sales increased 19.8% from  a year ago. 

Walmart Stores reported weaker than expected quarterly results and lowered outlook for the year. 

Home Depot jumped 5% after the home improvement retailer reported strong quarterly sales and earnings and the company lifted 2022 annual sales outlook to 3% increase and lifted earnings growth in the mid-single digits. 

Bank stocks advance after Warren Buffett controlled Berkshire Hathaway increased its stake in Citigroup by $3 billion. 

Other banks including JPMorgan Chase, and Wells Fargo traded higher on the Buffett's investment.  

European markets traded higher after bargain hunters revved up buying in large and mid cap stocks. 

The DAX index gained 1.6% to 14,191.32, the CAC-40 index advanced 1.3% to 6,432.77, and the FTSE 100 index gained 0.8% to 7,526.46. 

Investors cheered the latest jobs reports from France and the U.K. 

French unemployment rate in the first quarter declined to 7.3%, the lowest in 14 years and the U.K. jobless rate fell to 3.7% in the period, the lowest since 1974. 

Eurozone growth in the first quarter increased 0.3% from the previous quarter matching rate in the fourth quarter, according to the data released by the Eurostat. 

Asian markets advanced after China authorities suggested Covid-19 restrictions may be eased as early as June. 

The Nikkei 225 index in Tokyo increased 0.4% to 26,695.75, the Hang Seng Index in Hong Kong advanced 3.3% to 20,602.52, and the ASX 200 index in Sydney added 0.3% to 7,112.50. 

The Sensex index gained 2.54% or 1,344.63 to 54,318 and the Nifty index advanced 2.6% or 417.00 to 16,259.50. 

Shanghai hit the zero Covid-19 transmission for three days in a row raising the prospect of gradual lockdown easing as early as June, according to local reports quoting local authorities. 

The Nikkei index advanced for the third day in a row but gains were muted on the lingering worries of Fed rate uncertainties and elevated worldwide food and energy prices.

Inpex gained 3.5% and Japan Petroleum advanced 3.6%. 

Asahi Holdings declined 11% and Dentsu fell 6% on weaker than expected financial results.  

Tech stocks in Hong Kong led the surge. Alibaba Group soared 7.03% to HK$90.55, Tencent Holdings jumped 5% to HK$368.40, and JD.com added 7.04% to HK$214.80.