US stocks rise as investors try to shake off August slump ahead of retail data


US stocks ended higher as traders try to reinvigorate a rally that’s stalled in August.
The Nasdaq Composite was up over 1% after coming off back-to-back losing weeks for the first time in 2023.
Investors will be watching retail sales data from July to publish Tuesday, as well as key earnings results later in the week. 

US stocks ended higher on Monday, with investors looking shake off the August slump ahead of a week of big retail indicators. 

The Dow Jones Industrial Average is coming off its fourth positive week out of the last five, while the Nasdaq and S&P 500 both finished lower in the last five-day stretch.

The Nasdaq Composite was the big winner in Monday’s session, rising more than 1% after last Friday concluded its first back-to-back losing weeks in 2023.

Meanwhile, Bank of America strategist Savita Subramanian said Monday that investors should position for offense rather than defense right now, as stocks look poised to enter the early cycle of an expansion.

With odds of a soft-landing rising, she made a bullish upgrade to the riskier consumer cyclical sector.

“[BofA’s] revised forecast is based on further evidence of continued resilience in the US economy, including positive GDP revisions, strength in business spending, and a rebound in labor supply,” she said.

Investors will be watching for key retail sales data to publish Tuesday, as well as earnings from retailers later in the week including Walmart, Home Depot, and Target. 

Here’s where US indexes stood as the market closed 4:00 p.m. on Monday: 

S&P 500: 4,489.72, up 0.58% Dow Jones Industrial Average: 35,307.63, up 0.07% (26.23 points)Nasdaq Composite: 13,788.33, up 1.05% 

Here’s what else is going on: 

“Big Short” investor Michael Burry revealed big bets against the S&P 500 and Nasdaq 100.Home values have soared so much that the share of houses worth $1 million or more is near a record high.Struggling Chinese property giant Country Garden saw its stock hit a record low.Chinese stock funds attracted $4.4 billion in 8 days, fueling speculation of a state-run buying spree.Argentina’s peso dropped after a presidential candidate who wants to dollarize the economy pulled off a primary win. Hawaiian Electric utility company saw its stock price plunge after Maui fires.AMC stock dropped more than 30% on fears that the meme stock could be diluted by conversion of APE units.Bond markets are flashing warning signs even as recession forecasts pull back, Ed Yardeni said.

In commodities, bonds, and crypto: 

Oil prices declined, with West Texas Intermediate down 0.85% to $82.48 a barrel. Brent crude, the international benchmark, inched lower 0.7% to $86.20 a barrel.Gold edged lower 0.36% to $1,939.60 per ounce.The 10-year Treasury yield ticked higher one basis point to 4.187%.Bitcoin moved lower 0.2% to $29,935.00.

Read the original article on Business Insider


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