Stocks closed higher ahead of the long holiday weekend, with some encouraging economic data fuelling today’s gains as bargain hunters flocked to the market following Thursday’s market-wide sell-off.
in particular, Census Bureau Data New orders for durable goods, released before the market opened, rose 0.7% from March to April, marking the third consecutive month of increases.
In other economic news, the University of Michigan Final Consumer Confidence Index for May Consumer confidence fell more than 10% from the previous month to its lowest level in nearly five months (69.1), but this was an improvement from an earlier reading of 67.4, and short-term inflation expectations also improved.
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Slowing employment and wage growth and concerns about sustained high growth Interest level “This could pose downside risks to consumer spending,” he said. Joan Hsu“Still, consumer sentiment is nearly 20% higher than a year ago and about 40% higher than the all-time low in June 2022, reflecting how much consumer views have improved as inflation moderates,” said Jonathan Myers, director of consumer surveys at the University of Michigan.
Today’s durable goods figures suggest a manufacturing revival, Jose Torres“The upside to consumer sentiment and easing expectations of inflationary pressures are fueling the economic recovery,” he said. Soft Landing “Trade,” he points out.
Deckers Outdoor hits record high after announcing financial results
In individual stock news, Deckers Outdoor (DECK) surged 14.2% today to close at a record high. Fueling the retail stock’s gains was a better-than-expected fourth-quarter earnings report that showed an 18% increase in revenue and a 51% increase in earnings per share compared to the same period last year.
Still, analysts at CFRA Research Zachary Waring Waring reiterated his sell rating on DECK after the earnings report. “We view the company favorably as it continues to execute on the growth of the HOKA brand,” he wrote in a note. However, analysts Consumer Discretionary Stocks Given that the company expects earnings to grow by just 2% at the fiscal 2025 midpoint, the stock is overvalued.
Ross Stores rises after reporting earnings
Ross Store (ROST) was another post-earnings winner, soaring 7.8% after first-quarter sales and profit beat expectations.
“ROST’s first-quarter report suggests that the company’s fundamentals remain fairly strong, despite significant macro pressures on its core low- to middle-income clients,” analysts at UBS Global Research said. Jay SoleStill, the analyst maintained a neutral rating (equivalent to hold) and sees “limited upside potential” from current levels.
Regarding the main indicators, Nasdaq Composite Index It increased by 1.1% to 16,920; S&P 500 It increased 0.7% to 5,304. Dow Jones Industrial Average It edged up slightly to finish at 39,069. The Nasdaq and S&P 500 both recorded their fifth straight week of gains, while the Dow ended its streak of weekly gains.
On Monday Stock Market Holiday Both the stock and bond markets were closed in observance of Memorial Day.
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