Wall Street opens mostly higher

Wall Street’s main indices got off to a mostly higher start on Tuesday following positive earnings from a number of major retailers and less than stellar US housing data.

Shortly after the opening bell, the Dow Jones Industrial Average was up 0.09% at 34,359 while the S&P 500 was flat at 4,163 and the Nasdaq rose 0.09% to 13,391.

Strong earnings from Walmart and Home Depot ahead of the open lifted market sentiment, however this was tempered slightly by US housing starts, which dropped 9.5% in April and below forecasts as lumber prices surged.

7:50am: Wall Street to open higher

The main indices on Wall Street are expected to see a positive opening following forecast-beating results from two major retailers.

Despite markets slipping back on Monday, the Dow Jones Industrial Average is expected to open 0.26% higher at 34,405 on Tuesday morning, while the S&P 500 is set to climb 0.31%. With a recovery in tech stocks forecast, the Nasdaq Composite is heading for an opening 0.7% gain.

Meanwhile, Walmart Inc (NYSE:WMT) reported first quarter earnings per share of US$1.69, up from US$1.18 a year ago and expectations of a figure of US$1.2. Sales grew 6% with ecommerce sales up 37%.

Chief executive Doug McMillon said: “Every segment performed well, and we’re encouraged by traffic and grocery market trends. Our optimism is higher than it was at the beginning of the year…We anticipate continued pent-up demand throughout 2021.”

Home improvements group Home Depot Inc (NYSE:HD) was also upbeat. Earnings per share came in at US$3.86 for the first quarter compared to US$2.08 a year ago and forecasts of US$3.04. Revenues rose by 32.7% compared to an expected 22% increase.

Four things to watch for on Tuesday:

• Large cap firms in the earnings diary include video game developer Take Two Interactive Software Inc (NASDAQ:TTWO) and Canadian cannabis firm Tilray Inc (NASDAQ:TLRY)
• Shares in retailer Macy’s Inc (NYSE:M) will be in focus after the company beat expectations with tis earnings and raised its guidance
• Amazon Inc (NASDAQ:AMZN) could also draw some attention following reports the ecommerce giant is in talks to buy movie studio MGM
• On the macro front, US housebuilding data may be of interest to some investors

Story by ProactiveInvestors