U.S. Major Averages Retain Upward Bias, Weak Bounce In Retail Sales

Barry Adams
18 Jun, 2024
New York City

Stocks lacked direction in early trading, and investors reviewed the latest update on retail sales ahead of a public holiday on Wednesday. 

The S&P 500 index and the Nasdaq Composite meandered in thin trading as investors assessed the health of the consumer. 

Both widely followed indexes closed at new record highs on Monday; they inched higher in Tuesday's trading after struggling at the open. 

Semiconductor stocks advanced and extended gains from the previous week and the previous session. 

Nvidia, Qualcomm, and Micron Technology jumped between 2% and 5%, but Broadcom declined 0.2% after surging more than 20% in the previous two sessions following the announcement of a 1-for-1 stock split. 

 

Retail Sales Edged Slightly Higher In May

Retail sales in May rose by 0.1% from the previous month, following a downwardly revised fall of 0.2% in April, the U.S. Census Bureau reported Tuesday. 

The weak reading on retail sales offers another sign of cooling consumer spending amid elevated prices and a high cost of living. 

Sales at gasoline stations declined 2.2%, food services and drinking places fell 0.4%, and food and beverage stores fell 0.2%. 

Excluding gasoline, sales rose 0.3%.

Sales excluding food services, auto dealers, building materials stores, and gasoline stations, which are used in the calculation of gross domestic product, rose 0.4% following a drop of 0.5% in the previous month. 

On an annual basis, retail sales rose 2.3% in May, following a downwardly revised 2.7% increase in April. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,483.33, and the Nasdaq Composite fell 0.01% to 17,841.51. 

The yield on 2-year Treasury notes edged lower to 4.73%, 10-year Treasury notes decreased to 4.25%, and 30-year Treasury bonds edged higher to 4.40%.

WTI crude oil increased $0.35 to $80.55 a barrel, and natural gas prices fell 4 cents to $2.83 a thermal unit.

Gold decreased by $1.84 to $2,318.83 an ounce, and silver fell 11 cents to $29.27. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.26.

 

U.S. Stock Movers

Lennar decreased 3.3% to $151.40 despite the home builder reporting better-than-expected results in the second fiscal quarter. 

Chegg soared 17% to $3.05 after the online textbook and education services provider announced a restructuring, including job cuts. 

The company plans to reduce its global headcount by 23% and reiterates its commitment to an operating earnings margin of 25%. 

La-Z-Boy jumped 18.8% to $40.47 after the furniture maker reported better-than-expected fourth-quarter results.