Major indexes traded near session highs in early afternoon trading. The Dow Jones Industrial Average rose 0.7% at 1:30 p.m. ET Tuesday after fresh economic data indicated a weakening job market and consumer outlook. The Nasdaq led with a 1.6% gain. Both the Nasdaq and the Dow retook their 50-day moving averages.
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Consumer confidence in August weakened, according to the Conference Board. After a 117 reading in July, the index slid to 106.1 in August.
The Job Openings and Labor Turnover Survey (JOLTS) number of 8.827 million came in lower than views of 9.559 million for July. It shrank from June’s 9.582 million. The data showed some loosening in the labor market.
The Case-Shiller Home Price Index for June showed a 0.9% increase, lower than consensus for a 1.1% rise and May’s 1% increase, according to Econoday. The U.S.-FHFA House Price Index showed a 0.3% fall in June reversing from May’s 0.7% increase.
Following the rash of data, the yield on the benchmark 10-year Treasury note fell 10 basis points to 4.11%.
More inflation data is due out Thursday and August’s nonfarm payroll report comes out Friday.
The S&P 500 gained 1.3% at the hour and is back above the 50-day line for the first time in two weeks. Volume on the NYSE and the Nasdaq was higher compared with the same time on Monday.
Google parent Alphabet (GOOGL) — a big component of the S&P and Nasdaq — rose 2.4% as it debuted new AI offerings on Google Cloud and Workspace at the Google Cloud Next event. The stock cleared a four-week consolidation and is at the highest since April 2022.
The small-cap Russell 2000 had a 1.3% gain while the Innovator IBD 50 (FFTY) ETF outperformed with a 2.3% gain.
Crude oil rose slightly to trade at $80.27 a barrel.
Dow Jones Stocks On The Move
In the Dow, Apple (AAPL) rose 2%, regaining its 21-day exponential moving average.On Sept. 12, the Cupertino, Calif., tech giant will hold its fall event, when it may unveil new hardware, including iPhone and smartwatch models. The stock is below the 50-day line, however.
3M (MMM) added 2% to Monday’s gains, when it cleared the 50-day line. Salesforce.com (CRM) pared losses ahead of its earnings report Wednesday.
Outside of the Dow Jones, lower sales volume and a lower average selling price due to product mix in the second quarter led to a 15% fall in revenue for Nio (NIO). An increase in sales of used cars led to a decrease in overall margins. The company reported a loss per American depositary share of 45 cents compared to a 20-cent loss per ADS the prior year.
For the third quarter, Nio expects a 47.7% increase in sales at the midpoint of its forecast. Shares trimmed their loss to 5% in the afternoon. The stock bounced back after a brief drop below the 200-day moving average.
Best Buy (BBY) rose after earnings beat analysts’ views. CEO Corie Barry sees demand for consumer electronics touching a low this year, followed by growth as replacement and upgrade cycles resume next year and tech innovation normalizes.
July-quarter comparable sales fell as computing, mobile and appliance sales continued to contribute most to the domestic revenue, and declined from the same period a year ago. Domestic profit improved due to higher margin rates for certain products and services.
Falling comparable sales and a flux in currency rates led to a decline in international revenue. For fiscal 2024, the electronics company raised its midpoint earnings guidance by 10 cents to $6.20 per share. BBY stock surged 6% and was approaching its 200- and 50-day lines.
PDD Breaks Out After Results
Online marketing and transaction services drove revenue higher by 66% vs. the year-ago quarter for China-based PDD (PDD). The stock is surging Tuesday and has broken out of a cup-with-handle base with a buy point of 92.79 in the stock market today. PDD is in the IBD 50.
Among other earnings movers, J.M. Smucker (SJM) gained nearly 2% after sales fell 4% and earnings per share of $2.21 grew 32% from the prior year. Shoe Carnival (SCVL) extended its downtrend as comparable store sales fell 6.5% during the quarter. But the stock trimmed most losses.
Among chip stocks, Broadcom (AVGO) retook the 50-day line with earnings due Thursday.
Please follow VRamakrishnan on Twitter for more news on the stock market today.
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