A slow start for stocks Tuesday turned into a sprint for the fine finish, with all three indexes posting solid gains amid an onslaught of better-than-expected economic reports. Still, not all of the day's price action was positive, with one electric vehicle (EV) stock plunging on bankruptcy news.
Ahead of the opening bell, the Census Bureau said orders for durable goods were up 1.7% from April to May, their third straight monthly rise. Excluding transportation and defense, new orders were 0.6% and 3.0% higher, respectively.
The Census Bureau also said new home sales jumped 12.2% on a monthly basis in May and 20.0% on an annual basis. Separate data from both the Federal Housing Finance Agency and S&P Dow Jones Indices showed home prices rose in April.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Rounding out the economic calendar was a report from The Conference Board that showed consumer confidence jumped 7% in June vs the month of May. At 109.7, the confidence index posted its highest reading since January 2022.
"Greater confidence was most evident among consumers under age 35, and consumers earning incomes over $35,000," said Dana Peterson, chief economist at The Conference Board, in today's press release. "Nonetheless, the expectations gauge continued to signal consumers anticipating a recession at some point over the next six to 12 months."
Taken as a whole, today's slew of data supports the view that the U.S. economy "is not breaking just yet," says Edward Moya, senior market strategist at currency data provider OANDA.
Rate-hike expectations for the next Fed meeting ticked slightly higher after today's data, with futures traders now pricing in a 76.9% probability of a quarter-point increase vs Monday's reading of 74.4%, according to CME Group.
Lordstown Motors files for bankruptcy
Meanwhile, Lordstown Motors (RIDE) stock plunged 17.2% after the electric vehicle maker filed for Chapter 11 bankruptcy. The company, whose electric Endurance pickup was once praised by former President Donald Trump, has seen its share price steadily decline since peaking near $450 in September 2020. Today, RIDE closed in penny-stock territory, at $2.29.
As for the major indexes, the Nasdaq Composite closed up 1.7% at 13,555 and the S&P 500 was 1.2% higher at 4,378. The Dow Jones Industrial Average gained 0.6% to 33,926, snapping its six-day losing streak even as component Walgreens Boots Alliance (WBA) tumbled 9.3% following a fiscal Q3 earnings miss and downwardly revised full-year guidance.
Travel stocks shine
Drilling down into today's sector performances, consumer discretionary stocks (+2.2%) led the way thanks to big gains for a pair of travel names. Cruise operator Carnival (CCL), for one, surged 8.8% after reporting better-than-expected fiscal second-quarter revenue. Delta Air Lines (DAL) jumped 6.8% after boosting its full-year profit and cash flow guidance.
Coming in a close second were tech stocks (+2.0%), while communication services stocks landed at a distant third (+1.7%). Only one of the market's 11 sectors – healthcare (-0.2%) – closed in the red, hurt by weakness in shares of diagnostics firm Thermo Fisher Scientific (TMO, -2.4%), as well as the aforementioned drop in WBA stock.
Related Content
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us?A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
Stocks Retreat as Shutdown Continues: Stock Market TodayWhile the main indexes closed lower today, Delta and PepsiCo gained ground on encouraging earnings reports.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
