U.S. Averages Traded Higher, Retail Sales Advanced, Jobless Claims Held Steady

Barry Adams
15 Jun, 2023
New York City

Stocks on Wall Street overcame morning doldrums and extended gains a day after the Federal Reserve paused its monetary tightening cycle. 

The Federal Reserve held the federal funds rate as expected but sent clear signals that its inflation fight is not done yet and policymakers are prepared to lift rates to cool inflation to 2%. 

In a balancing act, the central bank is attempting to cool inflation while avoiding the economy to slip into a recession and not cause widespread unemployment. 

Investors also digested the latest jobless claims and retail sales data.

 

Jobless Claims Held at Elevated Levels 

Initial jobless claims for the week ending on June 10 were 262,000, matching the previous week's level, the U.S. Department of Labor reported Thursday. 

Continuing claims for four weeks increased 20,000 from the previous week to 1,775 million.

 

Retail Sales Unexpectedly Rose In May 

U.S. retail sales rose 0.3% in May following a 0.4% rise in April, the U.S. Census Bureau reported Thursday. 

Retail and food services sales for May, adjusted for seasonal variation and  holiday and trading-day differences, but not for price changes, were $686.6 billion, up 0.3% from the previous month, and up 1.6% from a year ago. 

Retail trade sales were up 0.3% from April 2023, and up 0.7 percent (±0.5 percent) above last year. 

Nonstore retailers were up 6.5% while food services and drinking places were up 8.0% from a year ago. 

 

U.S. Indexes & Yields 

The S&P 500 index increased 0.9% to 4,410.29 and the Nasdaq Composite increased 0.7% to 13,726.93. 

The yield on 2-year Treasury notes decreased to 4.65%, 10-year Treasury notes edged down to 3.73% and 30-year Treasury bonds eased to 3.83%. 

Crude oil increased $0.92 to $69.19 a barrel and natural gas prices increased 8 cents to $2.42 a thermal unit. 

 

U.S. Stock Movers

Cava Group soared more than 110% and traded as high as $45 after the restaurant company completed its initial public offering. 

Cava sold 14.4 million shares at $22 each and raised $318 million. 

Toyota Motor Corp increased 1.9% to $168.72 and the stock extended its weekly gain after shareholders reelected company chairman Akio Toyoda yesterday. 

Kroger Co declined 2.8% to $45.88 after the company reiterated its same store sales excluding gasoline sales for the year. 

Lennar Corp advanced 3.5% to $118.78 after the home builder reported better-than-expected fiscal second quarter results and the company lifted its unit sales outlook for the year.