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?
-
Thinking of a New Car in Retirement? Why GM's Latest News MattersThe retirement car conundrum: buy outright or finance your next ride?
-
How the New $250 Visa Integrity Fee Could Impact US TravelersA new $250 visa integrity fee will soon be levied on some visitors to the US. The ripple effect could impact Americans, too.
-
Dow Leads as Merck, Amgen Gain: Stock Market TodaySecond-quarter earnings season remained top of mind Tuesday, with Coca-Cola and GM among those reporting.
-
GM Not Planning to Raise Car Prices Despite Tariff Hit, CFO SaysCar Prices GM stock's second-quarter earnings said the company took a $1 billion hit from tariffs, but the CFO said they won't raise prices on cars.
-
5 Ways Portfolios Have Been Impacted In Trump's First Six Months in OfficePresident Trump's first six months in office have kept investors on their toes thanks to whipsaw tariff policies and a massive tax cut and spending bill.
-
We Check on Our Favorite Bond Funds Amid Tariff VolatilityBond volatility has ramped up amid debt and inflation worries. Most of our top bond ETFs are outperforming, while one laggard presents a unique opportunity.
-
Are You a Doormat at Work? The Hidden Cost of Excessive People-PleasingI talked to the author of the upcoming book 'Fawning,' and she explains how the 'fawn' response can lead to blurred boundaries, difficulty asserting needs and a loss of self, with serious emotional consequences like anxiety and PTSD.
-
A Guide to Personalizing Your Retirement Plan for Maximum ImpactThis strategy challenges conventional retirement rules of thumb by combining traditional savings, home equity and annuities to provide higher income and liquid savings and help cover long-term care costs.
-
How Advisers Can Rev Up Sales With MedicareHelp boost your revenue stream by integrating Medicare solutions into your financial practice for long-term client value and profits.
-
Stock Market Today: S&P 500 Hits High After Verizon EarningsThe Nasdaq also notched a new high on Monday, while the Dow finished with a marginal loss.
