We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stocks ended higher on Thursday, with the Dow recording its best week in a day, as robust retail sales and labor data, signaled a resilient economy and helped eased recession worries. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.4% or 554.67 points, to finish at 40,563.06 points, positing its best daily percentage gain in a week.
The S&P 500 rose 1.6% or 88.01 points, to end at 5,543.22 points. Consumer discretionary, technology and materials stocks were the best performers on the index.
The Consumer Discretionary Select Sector SPDR (XLY) gained 3.2%. The Technology Select Sector SPDR (XLK) rose 2.9%, while the Materials Select Sector SPDR (XLB) added 1.6%. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 2.3% or 401.89 points to close at 17,594.50 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.93% to 15.23. Advancers outnumbered decliners on the NYSE by a 3.22-to-1 ratio. On the Nasdaq, a 2.66-to-1 ratio favored advancing issues.
Retail Sales Data Ease Recession Worries
Wall Street has recovered strongly from the losses suffered earlier last week. Fresh economic data released over this week has been helping ease fears that the economy is slipping into a recession.
Investors have since regained confidence in the economy, which has seen stocks rally this week. The rally gained pace on Thursday following the release of a slew of fresh economic data.
The Commerce Department reported on Thursday that retail sales increased 1% in July after a downwardly revised 0.2% decline in June, and sharply higher than the consensus estimate of a rise of 0.3%.
The robust retail sales data further eased fears of an economic slowdown ignited by a jump in the unemployment rate last week.
The retail sales data came a day after data showed that the consumer price index (CPI) increased a meager 0.2% month over month in July and 2.9% from year-ago levels.
Positive data released this week has reassured investors betting that the Federal Reserve will start cutting rates in September.
Markets are now pricing in a 76.5% chance of a 25 basis-point rate cut in September, up from 65% before the release of the retail sales data, according to the Fed’s CME FedWatch Tool.
Shares of NIKE, Inc. ((NKE - Free Report) ) jumped 5.1% after billionaire investor William Ackman acquired new stakes in the sportswear company.
Economic Data
The Labor Department reported that jobless claims totaled 227,000 for the week ending Aug 10, decreasing 7,000 from the previous week’s revised level of 234,000. The four-week moving average was 236,500, a decrease of 4,500 from the previous week’s revised average of 241,000.
Continuing claims came in at 1,864,000, a decrease of 7,000 from the previous week’s revised level of 1,871,000. The 4-week moving average was 1,862,000 an increase of 1,000 from the previous week's revised average of 1,861,000.
In other economic data, U.S. industrial production declined 0.6% in July, sharply higher than the consensus estimate of a decline of 0.1%.
Capacity utilization fell to 77.8 in July, a rate that is 1.9% below its long-run average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Aug 16, 2024
U.S. stocks ended higher on Thursday, with the Dow recording its best week in a day, as robust retail sales and labor data, signaled a resilient economy and helped eased recession worries. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.4% or 554.67 points, to finish at 40,563.06 points, positing its best daily percentage gain in a week.
The S&P 500 rose 1.6% or 88.01 points, to end at 5,543.22 points. Consumer discretionary, technology and materials stocks were the best performers on the index.
The Consumer Discretionary Select Sector SPDR (XLY) gained 3.2%. The Technology Select Sector SPDR (XLK) rose 2.9%, while the Materials Select Sector SPDR (XLB) added 1.6%. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 2.3% or 401.89 points to close at 17,594.50 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.93% to 15.23. Advancers outnumbered decliners on the NYSE by a 3.22-to-1 ratio. On the Nasdaq, a 2.66-to-1 ratio favored advancing issues.
Retail Sales Data Ease Recession Worries
Wall Street has recovered strongly from the losses suffered earlier last week. Fresh economic data released over this week has been helping ease fears that the economy is slipping into a recession.
Investors have since regained confidence in the economy, which has seen stocks rally this week. The rally gained pace on Thursday following the release of a slew of fresh economic data.
The Commerce Department reported on Thursday that retail sales increased 1% in July after a downwardly revised 0.2% decline in June, and sharply higher than the consensus estimate of a rise of 0.3%.
The robust retail sales data further eased fears of an economic slowdown ignited by a jump in the unemployment rate last week.
The retail sales data came a day after data showed that the consumer price index (CPI) increased a meager 0.2% month over month in July and 2.9% from year-ago levels.
Positive data released this week has reassured investors betting that the Federal Reserve will start cutting rates in September.
Markets are now pricing in a 76.5% chance of a 25 basis-point rate cut in September, up from 65% before the release of the retail sales data, according to the Fed’s CME FedWatch Tool.
Tech stocks once again rallied on Thursday, with shares of Apple Inc. ((AAPL - Free Report) ) gaining 1.4%. Shares of NVIDIA Corporation ((NVDA - Free Report) ) jumped 4.1%. NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Shares of NIKE, Inc. ((NKE - Free Report) ) jumped 5.1% after billionaire investor William Ackman acquired new stakes in the sportswear company.
Economic Data
The Labor Department reported that jobless claims totaled 227,000 for the week ending Aug 10, decreasing 7,000 from the previous week’s revised level of 234,000. The four-week moving average was 236,500, a decrease of 4,500 from the previous week’s revised average of 241,000.
Continuing claims came in at 1,864,000, a decrease of 7,000 from the previous week’s revised level of 1,871,000. The 4-week moving average was 1,862,000 an increase of 1,000 from the previous week's revised average of 1,861,000.
In other economic data, U.S. industrial production declined 0.6% in July, sharply higher than the consensus estimate of a decline of 0.1%.
Capacity utilization fell to 77.8 in July, a rate that is 1.9% below its long-run average.