Investors had a lot of headlines to sift through on Tuesday ahead of the midweek holiday. As a reminder, Wednesday is a stock market holiday, when stock and bond markets are closed in observance of Juneteenth.
In economic news, Census Bureau Retail sales rose 0.1% in May from the previous month, improving from April’s revised decline of 0.2% but below economists’ expectations of a 0.2% increase.
Managing Partner Alon Bollig ComcapA boutique investment bank that works with several consumer companies said it has seen firsthand the negative impact of high interest rates. Interest level And how credit card interest rates have impacted discretionary spending for much of the past year.
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“We are seeing broad-based weakness in discretionary spending every day across individual brands, retailers and markets,” Boerig added. “We expect retail spending to remain weak until interest rates fall, with the discretionary spending category likely to remain weak until at least early 2025.”
NVIDIA becomes world’s most valuable company
In individual stock news, NVIDIA (NVDA) continued its strong rally, boosting the semiconductor maker’s market capitalization by 3.5%, or $115 billion. Market capitalization Its current market capitalization stands at $3.33 trillion, making it the most valuable company in the world.
Nvidia wins by a narrow margin Microsoft (MSFT, -0.5%) and apple (AAPL, -1.1%), both stocks fell on Tuesday, bringing their market caps to $3.31 trillion and $3.28 trillion, respectively.
Occidental Oil shares rise as Buffett increases holdings
Elsewhere, Occidental Petroleum (OXY) rose 1.8%. Regulatory filings Warren Buffett’s Berkshire Hathaway (BRK.B, +0.2%) has been buying up oil-related stocks in recent weeks. In fact, Buffett’s holding company has bought 7.3 million shares of OXY since June 5.
Buffett & Company, Energy stocks In the first quarter of 2022, the holding company holds over 248 million Occidental shares, which represents 4.9% of the company’s shares. Berkshire Hathaway Stock PortfolioGiven that Oxy is down nearly 6% since the start of the second quarter, Buffett is likely buying low on one of his favorite stocks. Oil Stocks.
Lennar Slumps on Weak Shipping Outlook
In earnings news, Renner (LEN) is a home builder Weak shipment outlook for Q3 This offset better-than-expected results in the second quarter.
While most of Wall Street is bullish on LEN, Wedbush analysts Jay McCanless It has an underperform (sell) rating. Consumer Discretionary StocksIn addition to the rise Mortgage interest rates“Competitive threats to Lennar and the industry due to higher inventory of new and existing homes compared to last year could be another headwind to new home demand,” analysts wrote in a recent client note.
Regarding the main indicators, Nasdaq Composite Index (+0.03% 17,862) S&P 500 (+0.3% to 5,487) hit a new record high, Dow Jones Industrial Average It rose 0.2% to 38,834.
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