Day Traders Diary
The major averages closed mixed with the Dow Jones Industrial Average rallying for a fifth day as earnings results from Walmart and Home Depot showed consumer spending could remain strong enough to keep the economy from tipping over into a downturn. The Dow finished up 239 points or 0.71% after rising as much as 368 points earlier in the session. The S&P 500 rose 8 points or 0.19% while the Nasdaq Composite dipped 25 points or 0.19%, dragged down by semiconductor and solar names.
Retail names including Target, Best Buy and Bath & Body Works also gained Tuesday on the back of Walmart and Home Depot earnings. Earnings for the sector continue with reports from Target and Lowe's on Wednesday.
In other news, Bed Bath & Beyond shares staged a rally as Reddit traders once again bet big on the stock.
Wall Street is coming off a solid session, with the major averages all rising Monday after a sharp intraday turnaround and building on the market's rally off a June low.
Dow rally loses steam, S&P and Nasdaq turn negative into final hour
The Dow's roughly 368-point rally lost steam heading into the finally hour of trading, while the S&P 500 and Nasdaq Composite veered back into negative territory.
The market is 'ripe' for a short-term pullback, Morgan Stanley's Slimmon says.
Markets are poised for a short-term pullback amid the recent rally, Morgan Stanley Investment Management's Andrew Slimmon said.
Equities should end the year higher, or close near where markets began 2022, but investors should expect a pause over the next few weeks, Slimmon said.
The senior portfolio manager believes that markets remain overbought, especially after taking a strong leg higher within a short period of time.
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