Wall Street gains on upbeat retail results

Credit: Reuters Studio
Published on August 21, 2019 - Duration: 01:14s

Wall Street gains on upbeat retail results

Wall Street's main indexes rose on Wednesday as upbeat earnings from retailers pointed to strength in U.S. consumer demand.

Fred Katayama reports.


Wall Street gains on upbeat retail results

Investors bought more stocks Wednesday even though a bond market indicator again signaled a possible recession.

They were encouraged by upbeat earnings from leading retailers that bolstered confidence in consumer demand.

The Dow led the charge, rising nearly 1%.

It and the S&P 500 have risen in four of the last five days.

RegentAtlantic research director, Andy Kapyrin: SOUNDBITE: REGENTATLANTIC RESEARCH DIRECTOR, ANDY KAPYRIN (ENGLISH) SAYING: "Today's market action I think actually has a lot to do with Target because in addition to suggesting that Target and the legacy retailers can compete with Amazon on even terms, it also suggests that the consumer is fundamentally healthy." Leading the S&P's list of gainers: Target.

The discount retailer's shares catapulted to a record high.

Its quarterly profit shot up 17%, crushing analysts' forecasts.

It also raised its full-year profit forecast.

Expanding same-day pick-up services attracted new customers and turbocharged digital sales.

Lowe's shares also rose in double digits.

Like archrival Home Depot, focusing on higher-spending customers helped the home improvement chain drive quarterly profit past Wall Street's estimates.

Toll Brothers shares fell.

The luxury homebuilder's quarterly orders declined.

That indicates weaker demand for new homes.

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