Stocks rose for a second straight session on Tuesday even after Target issued a warning about its current quarter’s profits, which put pressure on the broader retail sector.
The Dow Jones Industrial Average gained 264.36 points, or 0.8 percent, to close at 33,180.14. The S&P 500 rose 0.95 percent to 4,160.68, and the Nasdaq Composite added 0.94 percent to 12,175.23.
The indexes opened solidly lower but trimmed those losses and turned positive as the day progressed.
The gains for the averages came in spite of weakness for retail stocks. Target shares fell 2.3 percent after the retailer announced plans to work down excess inventory, though the stock trimmed its losses as the session progressed.
The company said it would implement additional markdowns on products and cancel some orders. Target also lowered its operating margin guidance for the quarter. Walmart shares followed Target lower, sliding 1.2 percent. Amazon fell 1.4 percent.
Major retailers have delivered mixed results and outlooks in recent weeks, adding to stock market volatility as investors try to determine if the announcements signal the start of a potential recession or a rapid change in consumer spending that caught some companies off guard on the inventory side.
Energy was one of the top-performing sectors on Tuesday as oil futures hovered near $120 per barrel.
Exxon jumped more than 4 percent following an upgrade from Evercore ISI, putting the stock above $100 per share for the first time since 2014. Phillips 66 and Chevron gained about 3.7 percent and 1.9 percent, respectively.
Shares of Apple rose 1.7 percent, helping to boost the tech sector. In corporate deal news, Kohl’s jumped 9.5 percent after the retailer said it was in exclusive negotiations with Franchise Group about a potential takeover.
Equities may have been helped by developments in the bond market on Tuesday, as the benchmark 10-year Treasury yield retreated back below 3 percent.
Stocks are now well off their lows from mid-May, but investors are still waiting to see if the recent bounce in stocks is a bear market rally or has the market reached a bottom from this year’s sell-off.
This report’s information was first seen on CNBC; to read more, click this link.
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