- June's retail sales were stronger than expected on Tuesday.
- It indicates that consumers are still helping drive economic growth.
- Bank of America earnings topped estimates, and shares rose early Tuesday.
US stocks climbed higher as fresh data indicated that consumers were still spending.
Retail sales published Tuesday came in better than expected for June. Excluding autos, sales rose 0.4% against estimates of a 0.1% increase. The data marked the biggest increase in three months, and suggests that the US consumer is still strong even as worries swirl around an imminent pullback.
"Especially when factoring out the cyberattacks on auto dealers, the report was surprisingly strong, with big spending at online retailers and on building materials. With inflation down, wage growth strong, and job growth solid, the prospects for steady but moderate spending gains are looking better," Navy Federal Credit Union corporate economist Robert Frick said.
In the meantime, earnings reports continue to impress. Bank of America rose early Tuesday after its second-quarter performance topped estimates.
Stock indexes look poised to hit fresh record highs on Tuesday.
According to Bloomberg data, the benchmark index has now gone 350 sessions without dipping 2% or more, the longest streak since 2007.
In the bond market, the 10-year Treasury yield slid moderately, after comments dovish were made by Federal Reserve Chairman Jerome Powell. The central bank head indicated on Monday that the Fed would not wait until inflation hit 2% before cutting.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 5,648.65, up 0.31%
- Dow Jones Industrial Average: 40,383.34, up 0.43% (+178.51 points)
- Nasdaq composite: 18,553.27, up 72.24%
Here's what else happened today:
- Tariffs on China are not the best way to boost domestic industry, Yale economist Stephen Roach says.
- The Fed should cut interest rates at its July meeting for three reasons, according to Goldman Sachs.
- Cyclicals are a buy amid a "Goldilocks" backdrop for the US economy, Bank of America says.
- The Fed shouldn't cut rates at all in 2024 as the economy faces a second- half rebound, macro strategist says.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil dropped 1.77% to $80.55 a barrel. Brent crude, the international benchmark, was down 1.65% to $83.43 a barrel.
- Gold climbed 0.33% to $2,433.63 per ounce.
- The 10-year Treasury yield slipped two basis points to 4.199%.
- Bitcoin shed 1.7% to $63,909.