AEO - Dow Pops Nearly 400 as Interest Rate Threat Lessens
Stocks kept rolling Tuesday as Wall Street looked past tightening COVID policies in China to instead focused on a host of strong earnings reports and the potential for smaller future rate hikes during a holiday-shortened trading week.
The Dow Jones Industrials flew 397.82 points, or 1.2%, to wrap up the day at 34,089.10
The S&P 500 zoomed 53.64 points to 4,003.58.
The NASDAQ ticked higher 149.9 points, or 1.4%, to 11,174.41. Mixed earnings results led to a few big stock moves - Best Buy popped 11% after the electronics retailer hiked its 2023 fiscal outlook and beat earnings expectations, while Abercrombie & Fitch hiked 19% and American Eagle Outfitters spiked 16%. On the flip side, Zoom fell 5.4% amid disappointing earnings and Dollar Tree slipped about 9% after a lower-than-expected outlook.
China saw its first deaths in the mainland from COVID since May over the weekend. It prompted fears among investors that the country could bring back restrictions meant to slow virus spread, which would hurt business.
Economic reports due out include the Philadelphia Fed's nonmanufacturing business outlook survey and the Richmond Fed's manufacturing index.
Investors are also watching for earnings reports from HP Inc and Nordstrom after the bell. The stock market will be closed on Thursday for the Thanksgiving holiday and will close early on Friday.
Prices for the 10-year Treasury climbed, lowering yields to 3.76% from Monday's 3.83%. Treasury prices and yields move in opposite directions.
Oil prices stayed buoyant $1.10 to $81.14 U.S. a barrel.
Gold prices hung onto gains of 90 cents to $1,740.50 U.S. an ounce.