Stocks closed higher ahead of the long holiday weekend. In addition to bargain hunters swooping in following Thursday's broad-market bludgeoning, some encouraging economic data helped spark today's upside.
Specifically, data from the Census Bureau released ahead of the open showed new orders for durable goods rose 0.7% from March to April, marking the third consecutive monthly increase.
In other economic news, the University of Michigan's final Consumer Sentiment Index for May revealed consumer sentiment was down more than 10% month-to-month to its lowest level in about five months (69.1). However, this was better than the initial reading of 67.4, while short-term inflation expectations also improved.
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.
Concerns over slowing job and wage growth and higher-for-longer interest rates could "pose downside risk for consumer spending," said Joanne Hsu, director of the surveys of consumers at the University of Michigan. "Still, sentiment remains almost 20% above a year ago and about 40% above the all-time historic low in June 2022, reflecting how much consumer views have improved as inflation eased."
Today's durable goods figures are signaling a comeback in the manufacturing sector, says José Torres, senior economist at Interactive Brokers. Additionally, the upwardly revised consumer sentiment, alongside lighter price pressure projections, "is providing fuel to the soft-landing trade," he notes.
Deckers Outdoor hits a record high after earnings
In single-stock news, Deckers Outdoor (DECK) soared 14.2% today to close at a new record high. Boosting the retail stock was its stronger-than-expected fiscal fourth-quarter earnings report that showed 18% year-over-year revenue growth and a 51% spike in earnings per share.
Still, CFRA Research analyst Zachary Warring reiterated a Sell rating on DECK after earnings. "We believe the company continues to execute and love the growth from its HOKA brand," Warring writes in a note. However, the analyst believes the consumer discretionary stock is overvalued considering it expects a small 2% increase at the midpoint to fiscal 2025 earnings.
Ross Stores rallies after earnings
Ross Stores (ROST) was another post-earnings winner, surging 7.8% after beating top- and bottom-line estimates in its first quarter.
"ROST's Q1 report suggests the company's underlying fundamentals remain fairly solid even as its core low-to-middle income customers experience meaningful macro pressure," says UBS Global Research analyst Jay Sole. Still, the analyst remains Neutral-rated (the equivalent of Hold) and sees "limited upside" from current levels.
As for the main indexes, the Nasdaq Composite rose 1.1% to 16,920, the S&P 500 added 0.7% to 5,304, and the Dow Jones Industrial Average eked out a marginal gain to finish at 39,069. While the Nasdaq and S&P 500 extended their stretches of consecutive weekly gains to five, the Dow snapped its weekly win streak.
As a reminder, Monday is a stock market holiday with both the stock and bond markets closed for Memorial Day.
Related content
- DuPont Split Will Create Three Separate Companies: What To Know
- Kiplinger's Earnings Calendar for This Week
- Are Banks Open on Memorial Day in 2024?
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Dow Adds 646 Points, Hits New Highs: Stock Market Today
It was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
I'm a Tax Attorney: These Are the Year-End Tax Moves You Can't Afford to MissDon't miss out on this prime time to maximize contributions to your retirement accounts, do Roth conversions and capture investment gains.
-
I'm an Investment Adviser: This Is the Tax Diversification Strategy You Need for Your Retirement IncomeSpreading savings across three "tax buckets" — pretax, Roth and taxable — can help give retirees the flexibility to control when and how much taxes they pay.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
-
Could an Annuity Be Your Retirement Safety Net? 4 Key ConsiderationsMore people are considering annuities to achieve tax-deferred growth and guaranteed income, but deciding if they are right for you depends on these key factors.
-
I'm a Financial Pro: Older Taxpayers Really Won't Want to Miss Out on This Hefty (Temporary) Tax BreakIf you're age 65 or older, you can claim a "bonus" tax deduction of up to $6,000 through 2028 that can be stacked on top of other deductions.
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Meet the World's Unluckiest — Not to Mention Entitled — Porch PirateThis teen swiped a booby-trapped package that showered him with glitter, and then he hurt his wrist while fleeing. This is why no lawyer will represent him.
