MW : US Stocks In Modest Rebound On Retailer Earnings
An uptick in bank stocks and better-than-expected earnings from retailers helped the broader U.S. stock market rebound modestly on Tuesday from its drubbing in the previous session.
The Dow Jones Industrial Average followed Monday's 186-point slide with a 17-point rise in recent action, trading up 0.2%, at 9152.49. It was helped by a 2.6% rise in component Home Depot, which reported a 7.2% decline in second-quarter earnings that was nevertheless not as dire as analysts expected.
Target, which is not a Dow stock, also posted a smaller profit decline than expected. Its shares were up 4.9% recently.
Tuesday's earnings news helped to quell some of investors' recent fears about the health of the U.S. consumer. In turn, those concerns were the root of broader worries that a global rebound might be further off than expected.
The Nasdaq Composite Index was up 0.5%. The S&P 500 was up 0.4%, led by a nearly 1% rise in its financial sector.
Economic data on Tuesday were mixed. Home construction and permits for new building unexpectedly fell in July, the Commerce Department reported. Housing starts fell 1% compared to June, while building permits sank by 1.8%. Economists had expected both numbers to climb.
Separately, declines in the energy sector and lower prices for vegetables, eggs, and other food dragged down producer prices in July. The producer-price index for finished goods fell 0.9%. The core index, which strips out food and energy prices, declined 0.1%.
Overseas, Hong Kong's Hang Seng Index finished up 0.84% after plummeting to its weakest closing level since the end of July on Monday. In Europe, banks and miners were among the best performers as most stock benchmarks rose.
The dollar was mixed. One euro cost $1.4085, up from $1.4083 late Monday. One dollar fetched 94.68 Japanese yen, up from 94.44 yen.
Commodity prices edged lower. Crude futures were recently down 26 cents to $66.49 a barrel. The broad Dow Jones-UBS Commodity Index was off 0.4%.
Treasury prices were lower. The two-year note was down 1/32 to yield 1.020%. The 10-year note was off 3/32 to yield 3/32 to yield 3.481%.
