Investors had plenty of headlines to sift through Tuesday ahead of a mid-week break. As a reminder, Wednesday is a stock market holiday with the equities and bond markets closed in observance of Juneteenth.
In economic news, data from the Census Bureau showed retail sales rose 0.1% month-to-month in May, an improvement over April's revised 0.2% decline but below economists' forecast for a 0.2% increase.
Aron Bohlig, managing partner at ComCap, a boutique investment bank that works with several consumer-facing businesses, says his firm has witnessed the negative impact that higher interest rates and credit card rates have had on discretionary spending for most of the past year.
Sign up for Kiplinger’s Free E-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.
"We are still seeing this broad-based weakness in discretionary spending at individual brands, retailers and marketplaces on a day-to-day basis," Bohlig adds. "Our outlook is that retail spending will remain depressed until rates fall, which suggests that discretionary spending categories will continue to be weak at least into early 2025."
Nvidia becomes the most valuable company in the world
In single-stock news, Nvidia (NVDA) continued its red-hot run higher, with the chipmaker adding 3.5%, or $115 billion in market value. NVDA's market cap now stands at $3.33 trillion, making it the most valuable company in the world.
Nvidia edged past Microsoft (MSFT, -0.5%) and Apple (AAPL, -1.1%), which both declined Tuesday, bringing their respective market caps to $3.31 trillion and $3.28 trillion.
Occidental Petroleum climbs after Buffett boosts his stake
Elsewhere, Occidental Petroleum (OXY) gained 1.8% after regulatory filings revealed Warren Buffett's Berkshire Hathaway (BRK.B, +0.2%) has been scooping up shares of the oil stock in recent weeks. Indeed, Buffett's holding company has bought 7.3 million shares of OXY since June 5.
Buffett & Co. began accumulating shares of the energy stock in the first quarter of 2022. At the end of Q1 2024, the holding company owned more than 248 million Occidental shares, accounting for 4.9% of the Berkshire Hathaway equity portfolio. Considering OXY is down nearly 6% since the start of the second quarter, Buffett is likely buying the dip on one of his favorite oil stocks.
Lennar tumbles on soft deliveries outlook
In earnings news, Lennar (LEN) slumped 5.0% as the homebuilder's soft fiscal third-quarter deliveries outlook offset a fiscal second-quarter beat.
Most of Wall Street is bullish toward LEN, but Wedbush analyst Jay McCanless has an Underperform (Sell) rating on the consumer discretionary stock. In addition to elevated mortgage rates, "the competitive threats to Lennar and the industry from higher inventories of new and existing homes for sale versus last year may be another headwind to new home demand," the analyst wrote in a recent note to clients.
As for the main indexes, the Nasdaq Composite (+0.03% at 17,862) and the S&P 500 (+0.3% at 5,487) managed to notch new record closing highs, while the Dow Jones Industrial Average ticked 0.2% higher to 38,834.
Related content
- Apple Shuts Down Buy Now, Pay Later Service in the U.S.
- Adobe Sued By FTC Over Hidden Fees, Cancellation Issues
- Are Banks Open on Juneteenth in 2024?
-
Aging Well: 10 Things You Should Know for a Healthy RetirementIf you're committed to aging well, these tips can save on healthcare costs and make your later years more fulfilling.
-
What Would $1.46M In Savings Do For Your Retirement Lifestyle? How about $3.93M?Americans think $1.46 million is the ideal amount of money to have saved for retirement, according to a survey. What would that amount of money mean for your lifestyle in retirement?
-
Revocable Living Trusts: The Good, the Bad and the UglyPeople are conditioned to believe they should avoid probate at all costs, but when compared with living trusts, probate could be a smart choice for some folks.
-
How to Plan for Retirement When Your Child Has Special NeedsWhen your child has special needs, your retirement plan should include a plan for when you'll no longer be able to care for them yourself. A five-step guide.
-
Stock Market Today: Auto Tariffs Send Stocks LowerThe main indexes snapped their win streaks after the White House confirmed President Trump will talk about auto tariffs after the close.
-
Tax Advantages of Oil and Gas Investments: What You Need to KnowTax incentives allow for deductions and potential tax-free earnings — benefits accessible only to accredited investors in small producer projects.
-
Charitable Contributions: Five Frequently Asked QuestionsMake the most of your good intentions by understanding the ins and outs of charitable giving. A good starting point is knowing what's deductible and what isn't.
-
Financial Leverage, Part Two: Don't Say We Didn't Warn YouA lesson in how highly leveraged investments can benefit the first movers and crush the next round of buyers.
-
Taxes in Retirement: What ESOP Participants Need to KnowMost Employee Stock Ownership Plans (ESOP) participants transfer company stock to an IRA starting around age 55, so taxes on that money have been deferred.
-
Stock Market Today: Stocks Seesaw After Big Market RallyThe latest consumer confidence data showed sentiment remains low.
