Wall Street ends week higher on retail boost; PDD, DELL, ULTA rally

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US stocks closed the week with a third straight session of gain on Friday, May 27, helped by positive retail guidance and expectations of the macroeconomic situation improving.

The S&P 500 was up 2.47% to 4,158.24. The Dow Jones rose 1.76% to 33,212.96. The NASDAQ Composite increased by 3.33% to 12,131.13, and the small-cap Russell 2000 was up 2.70% to 1,887.90.

The Wall Street indices snapped their longest streak of weekly declines in decades this week.

On Friday, the Commerce Department said the personal consumption expenditures (PCE) index, the Fed’s preferred inflation measuring tool, rose 6.3% in April, slowing from 6.6% in March.

The latest readings spurred speculations that the inflation may have peaked in March. It may have helped calm concerns over the Federal Reserve’s aggressive posturing on rate increases.

The market acted cautiously after mixed economic data this week. US GDP declined at an annual rate of 1.5% in April, 0.1% higher than the Commerce Department’s initial estimates.

On the labor front, the unemployment benefit claims fell in the prior week. But the inflation situation was far from the comfort level.

The Fed’s minutes from its last policy meeting this week showed that most participants support at least a 50 basis point increase in interest rates sequentially in June and July.

Technology and discretionary stocks, which have been retreating, had a fairly good day. Shares of Amazon, Tesla, and Home Depot saw a strong comeback.

On Friday, all the 11 sectors of the S&P 500 index stayed in the green territory. The information technology and consumer discretionary sectors were the biggest gainers.

Chinese e-commerce firm Pinduoduo Inc. (PDD) stock gained 14% in intraday trading after beating estimates in quarterly results. Its online sales rose due to fresh lockdowns in China.

Cosmetics retailer Ulta Beauty, Inc. (ULTA) stock jumped over 11% a day after reporting better-than-expected quarterly results and providing upbeat guidance.

Shares of Dell Technologies Inc. (DELL) soared 12.32% after reporting strong quarterly results.

In the consumer discretionary sector, Amazon.com, Inc. (AMZN) increased by 3.66%, Tesla, Inc. (TSLA) gained 7.33%, and The Home Depot, Inc. (HD) surged 1.87%.

In basic material stocks, BHP Group Limited (BHP) added 3.82%, Linde plc (LIN) rose 2.90%, and Rio Tinto Group (RIO) gained 1.47%.

In the real estate sector, American Tower Corporation (AMT) jumped 2.46%, Prologis, Inc. (PLD) soared 4.00%, and Crown Castle International Corp. (CCI) advanced 3.12%.

In the technology sector, Microsoft Corporation (MSFT) added 2.76%, Apple Inc. (AAPL) jumped 4.08%, and NVIDIA Corporation (NVDA) ticked up 5.38%.

In the communication services sector, Alphabet Inc. (GOOG) increased by 4.16%, Meta Platforms, Inc. (FB) rose 1.83%, and The Walt Disney Company (DIS) surged 3.51%.

In the crypto space, Bitcoin (BTC) and Ethereum (ETH) declined by 1.58% and 3.42%, respectively. The global crypto market cap fell 2.34% to US$1.20 trillion at 4:27 pm ET on May 27.

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Futures & Commodities

Gold futures were up 0.21% to US$1,851.52 per ounce. Silver increased by 0.70% to US$22.119 per ounce, while copper rose 1.51% to US$4.3235.

Brent oil futures increased by 1.24% to US$115.58 per barrel and WTI crude was up 0.91% to US$115.13.

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Bond Market

The 30-year Treasury bond yields were down 0.69% to 2.971, while the 10-year bond yields fell 0.54% to 2.743.

US Dollar Futures Index decreased by 0.17% to US$101.685.


 


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