Newscasts - US Markets Briefing: Wall St charges ahead as recession fears subside

Heico

15/08/2024 20:00

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Source: 'Reuters - Business videos'

Description: Wall Street's main indexes jumped on Thursday, with the Nasdaq up
more than 2% after some unexpectedly robust retail sales figures allayed fears
of an imminent recession.
Short Link: https://refini.tv/3M3shTU

Video Transcript:

Wall Street charges ahead as recession fears subside. Welcome to your US
Markets Briefing. I'm Thomas Warner. Wall Street's main indexes jumped on
Thursday with the NASDAQ up around 2%. Retail sales data for July out earlier
revealed surprisingly robust consumer spending, allaying fears of an imminent
recession. 9 of the 11 major S&P 500 sectors were trading higher with consumer
discretionary and technology chief among the gainers. The bullish effect of
that retail sales data was boosted by an unexpected fall in applications for
unemployment benefits. Initial jobless claims fell to a one-month low of
around 227,000 people. The figures suggest that a slowdown in the labor market
is orderly. Traders slashed bets on a 50-basis-point rate cut next month in
response and now put the chances of a 25-basis-point cut at around 75%.
Looking ahead to tomorrow now and single-family housing starts are expected to
show a decline to 1.33 million units in July, June at 1.353 million was the
lowest in eight months. Building permits, meanwhile, are also seen lower on
the month at 1.429 million units, and there'll be more insight into the state
of the US consumer. Data from the University of Michigan is expected to show a
rise in consumer sentiment this month. The 66.9% forecast compares with the
final rating of 66.4% July, that data comes hot on the heels of Walmart
raising its annual profit forecast for the second time this year. Shares in
the world's biggest retailer rose 6% on Thursday. One analyst that we spoke to
said that retailers able to offer good e-commerce solutions are reaping the
benefits.

Online channel, the e-commerce experience is very crucial for consumers. The
American consumers all about instant gratification and they want to be able to
order something on their mobile phone, pick it up on their way home from work,
and the fact that these retailers are able to give this to the consumer is
what's really driving those sales. It's driving the US retail sales, Walmart
and Home Depot. So, consumers are value oriented, and they are looking for
effective ways to shop.

Tesla, meanwhile, was the top gainer among the mega-cap and growth stocks that
led the pack with an advance of more than 6%. Its shares are now back where
they were before the tech route at the start of August. And Ulta Beauty jumped
more than 10% on news that Warren Buffett Berkshire Hathaway has taken a stake
in the cosmetics store chain. Berkshire also bought shares of aircraft parts
maker Heico in Q2, while it nearly halved its stake in Apple. The upbeat mood
on Wall Street also gave oil prices a lift on Thursday, WTI was up nearly a
$1.5 to $78.50 per barrel. And finally, a federal judge has ruled that PepsiCo
can be sued for marketing its Gatorade protein bars as being good for you. The
bars have more sugar than protein, and indeed even more sugar than typical
candy bars. Neither PepsiCo nor its lawyers immediately responded to requests
for comment. And that is your US Markets Briefing