Tech shares lead US stocks higher as Walmart stumbles - RTHK
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Tech shares lead US stocks higher as Walmart stumbles

2022-05-18 HKT 04:54
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  • The tech-rich Nasdaq Composite Index led the major indices, winning 2.8 percent to finish the session. File photo: AP
    The tech-rich Nasdaq Composite Index led the major indices, winning 2.8 percent to finish the session. File photo: AP
Tech shares led Wall Street stocks higher on Tuesday as markets embraced data showing retail sales continued to rise in April even as Walmart tumbled on disappointing results.

US retail sales rose 0.9 percent in April as auto sales rebounded and categories such as electronics, home furnishings and restaurants saw strong gains.

One unwelcome factor in the increase was higher prices, but investors "closed their eyes to that effect," said Gregori Volokhine of Meeschaert Financial Services.

The tech-rich Nasdaq Composite Index led the major indices, winning 2.8 percent to finish the session at 11,985.

The Dow Jones Industrial Average climbed 1.3 percent to end at 32,655, while the broad-based S&P 500 gained 2.0 percent to 4,089.

Walmart plunged 11.4 percent after reporting a 25 percent drop in quarterly profits to US$2.1 billion due to higher costs for labour, food and fuel. Profits missed analyst expectations as the giant retailer lowered its annual earnings forecast.

But fellow Dow member Home Depot gained 1.7 percent as it reported higher profits and sales, saying demand for home improvement goods remained robust.

United Airlines surged 7.9 percent after federal air safety regulators cleared the carrier to resume service on more than 50 Boeing 777 planes that were grounded over a year ago due to engine issues.

Boeing also had a good day, advancing 6.5 percent. (AFP)