U.S. Indexes Advance After April Household Spending Increased

Barry Adams
27 May, 2022
New York City

U.S. stocks showed signs of another positive day following a sharp rebound yesterday. 

Futures on the S&P 500 index gained 0.73% to 4,073.03 and the Nasdaq Composite index advanced 1.1% to 12,414.25. 

Stocks advanced in the morning after the latest measure of personal consumption and income in April showed that the inflation may be cooling off. 

Personal income in April increased 0.4% or $89.3 billion in April, according to estimates released today by the Bureau of Economic Analysis. 

Disposable personal income increased 0.3% or $48.3 billion and personal consumption expenditures increased 0.9% or $152.3 billion.

PCE in current dollars increased 1.4% in March. 

Real DPI increased less than 0.1% in April and Real PCE increased 0.7%; goods increased 1.0% and services increased 0.5 percent.

The PCE price index increased 0.2% and excluding food and energy, the PCE price index increased 0.3%.

From a year ago, the PCE price index, the preferred measure of inflation, slowed to a 6.3% increase after rising at 6.6% in March. 

The PCE index excluding food and energy rose 4.9% in April after rising at 5.2% in March. 

Retail stocks were in focus again in trading. 

Big Lots declined 15.8% to $25.80 after the discount retailer reported weaker than expected quarterly results and issued cautious outlook for the year.

Net sales declined 15.4% to $1.37 billion after comparable sales fell 17% from a year ago and reported 39 cents a share loss compared to $2.68 a year ago. 

Hibbett Inc declined 6.7% to $51.10 after the sporting goods retailer reported April quarter net sales declined 16.3% to $424.1 million on a comparable sales fall of 18.9%. 

Net income for the 13-weeks ended April 30, 2022, was $39.3 million, or $2.89 per diluted share, compared to $84.8 million, or $5.00 per diluted share a year ago. 

Costco Wholesale declined 1.3% to $465.00 after the retailer said U.S. comparable sales in the first quarter rose 10.7% excluding fuel sales and reported first quarterly revenues in excess of $50 billion. Membership revenues surged 9% approaching $1 billion.

American Eagle Outfitters declined 9.4% to $14.00 after the retailer missed quarterly expectations. 

The yield on 10-year Treasury note edged lower after the release of personal consumption and income data to 2.729%. 

Futures of crude oil edged down to $113.83 a barrel and natural gas decreased 5.1% to $8.45 per unit.