Yes A checkmark with a circle around it close
Silver figurines of a bear and bull standing on top of a market chart

Stock Market News

Our market analysts keep you updated on the latest market trends including stock market data, news, market activity, and economic reports in the daily stock market commentary.

Opening | Midday | Closing

Closing Comment — Tuesday, August 16, 2022

DJIA: 34,152.01, up 239.57
S&P 500: 4,305.20, up 8.06
Nasdaq: 13,102.55, down 25.50

Stocks mixed; earnings in focus

U.S. equities closed mixed after being whipsawed in volatile trading Tuesday as investors digested earnings from U.S. retailers and downbeat economic data. The Dow rose 239 points, trimming an earlier advance of as much as 368 points. The S&P 500 gained 0.2% while the Nasdaq Composite dipped 0.2% amid weakness in tech shares. Walmart Inc. climbed 5.1% in its best session since 2020 as its profit, revenue, and comparable store sales all exceeded analyst estimates. Additionally, the big-box retailer slightly increased its full-year guidance after cutting its outlook just three weeks ago due to inflation inciting a shift in consumer behavior. Meanwhile, home improvement company Home Depot Inc. advanced 4.1% after posting better-than-expected results and maintaining its full-year guidance despite a housing market slowdown.

Another round of disappointing data dampened investor sentiment. Housing starts in July fell a worse-than-expected 9.6% from June to mark its worst reading since February 2021. Building permits declined 1.3% in the same period, its slowest pace since September 2021. Separately, industrial production increased a stronger-than-forecasted 0.6% in July, rising for the first time in three months.

Treasuries weakened with the yield on the 10-year note up one basis point (0.01%) to 2.81%. West Texas Intermediate crude slipped 3.3% to $86.45/barrel, its lowest point since mid-February. Downbeat economic data and uncertainty surrounding the revival of the 2015 Iran nuclear deal weighed on oil prices. Tomorrow, an update on retail sales for the month of July could provide insight into several macroeconomic trends. Also, investors will assess the Federal Open Market Committee’s (FOMC) meeting minutes from July for clues surrounding the future path of rate hikes.

Midday Comment — Tuesday, August 16, 2022

DJIA: 34,160.05, up 247.61
S&P 500: 4,310.00, up 12.86
Nasdaq: 13,114.18, down 13.87

Stocks mixed, retailers in focus

U.S. stocks are mixed near mid-session Tuesday as Wall Street assesses corporate earnings reports from major U.S. retailers, along with downbeat economic updates. The S&P 500 is rising 0.3%, while the Dow is adding 247 points. The Nasdaq Composite is dipping 0.1%.

In earnings, Walmart Inc. is climbing 5.4% as its profit, revenue, and comparable store sales all exceeded analyst estimates. Additionally, the big-box retailer slightly increased its full-year guidance after cutting its outlook just three weeks ago due to inflation inciting a shift in consumer behavior. Meanwhile, home improvement company Home Depot Inc. is advancing 4.4% after posting better-than-expected results and maintaining its full-year guidance despite a housing market slowdown. Breadth is positive on issues by 10:7 on the NYSE and negative by 4:3 on the Nasdaq. Composite NYSE volume is greater than 1.9 billion shares.

On the data front, housing starts fell a worse-than-anticipated 9.6% in July, the worst reading in 17 months. Building permits declined 1.3% during the same period, the slowest pace since September 2021. Separately, industrial production rose a stronger-than-expected 0.6% in July, rising for the first time in three months.

Treasuries are weakening, with the yield on the 10-year note up three basis points (0.03%) to 2.83%. In commodities, West Texas Intermediate crude is sliding 2.6% to $87.08/barrel, the lowest level in six months, as recessionary concerns pressure the demand outlook. Worries about additional global supply and a stronger U.S. dollar are also weighing on oil prices.

Opening Comment — Tuesday, August 16, 2022

DJIA: 33,912.44, up 151.39
S&P 500: 4,297.14, up 16.99
Nasdaq: 13,128.05, up 80.86

Stocks lower; earnings in focus

U.S. futures are pointing to a slightly lower open Tuesday as Wall Street digests earnings from major U.S. retailers. The Dow is off less than 0.1%, while the S&P 500 is dipping 0.1% in pre-market action. The Nasdaq 100 is trading 0.1% below fair value on the GLOBEX. Walmart Inc. (WMT) is adding 4.2% after its profit, revenue, and comparable store sales all exceeded analyst estimates. Additionally, the big-box retailer slightly increased its full-year guidance after cutting its outlook just three weeks ago due to inflation inciting a shift in consumer behavior. Sales grew 8% last quarter, while profit tightened due to consumers purchasing less high-margin discretionary goods and instead spending more on necessities. This follows yesterday’s session, during which the S&P 500 and Nasdaq Composite both edged higher, extending upward momentum following their longest weekly winning streaks since November 2021. Yesterday’s gains came despite downbeat economic updates from both the U.S. and China.

In commodities, oil is continuing its downtrend after falling about 5% in the previous two sessions. The potential rekindling of the Iran nuclear deal has raised concerns over rising oil supply, while recessionary concerns weigh on the demand outlook. A gauge of the U.S. dollar is adding pressure to oil prices after advancing 0.8% on Monday following last week’s sharpest five-day decline since May (-1.1%).

In other earnings this morning, home improvement retailer Home Depot Inc. (HD) is slipping 0.6% following its second-quarter earnings report. The home improvement retailer posted better-than-expected results despite a housing market slowdown, though the number of customer transactions declined. Home Depot maintained its guidance for the rest of the fiscal year. Meanwhile, investors will receive updates on the real estate market at 8:30 a.m. ET. Building permits and housing starts are expected to drop 3.3% and 2.1%, respectively in July as high inflation and recessionary fears weigh on demand.

Investment Implementation ("II") is a team within Wells Fargo Investment Institute, Inc. (WFII). WFII is a registered investment adviser and wholly owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.

The information in this report was prepared by Investment Implementation. Opinions represent II's opinion as of the date of this report and are for general information purposes only and are not intended to predict or guarantee the future performance of any individual security, market sector or the markets generally. II does not undertake to advise you of any change in its opinions or the information contained in this report. Wells Fargo & Company affiliates may issue reports or have opinions that are inconsistent with, and reach different conclusions from, this report. The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor.

This report is not intended to be a client-specific suitability or best interest analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities. Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. The material contained herein has been prepared from sources and data we believe to be reliable but we make no guarantee to its accuracy or completeness.

Wells Fargo Advisors is registered with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors.

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.