US Market rises on softening inflation signs, Walmart results

The US stock market finished session firmly in positive territory on Tuesday, 15 November 2022, as appetite for risk assets encouraged on reinforcing hopes that the Federal Reserve would slow the pace of its interest rate increases after producer prices crept up by much less than expected in the month of October. The strength on Wall Street also came amid better than expected third quarter earnings results from Walmart.

At the close of trade, the Dow Jones Industrial Average index was up 56.22 points, or 0.17%, to 33,592.92. The S&P500 index added 34.48 points, or 0.87%, to 3,991.73. The tech-heavy Nasdaq Composite Index increased 162.19 points, or 1.45%, to 11,358.41.

 

Total 9 of 11 sectors of S&P500 index advanced, with communication services (up 1.8%), information technology (up 1.24%), real estate (up 1.24%), consumer discretionary (up 1.24%), energy (up 1.1%), and consumer staples (up 1.1%) sectors.

The rally on Wall Street came following the release of a Labor Department report showing slowdown in the rise in factory gate prices after a report last week showed US consumer inflation was also easing, increasing hopes among some investors that the Fed would slow its tightening of monetary policy.

Retail stocks rose following Walmart and Home Depot's stronger-than-expected financial reports for the third quarter. Walmart jumped 6.5% after reporting better than expected quarterly earnings and raising its forward guidance. Home Depot rose 1.6%, while Target shares rallied 4%. Kohl's added 2%.

Shares of media company Paramount Global jumped after a filing revealed that Berkshire Hathaway increased its holding to $1.7 billion at the end of the third quarter.

Vodafone's stock dropped after the company cut its earnings guidance and cash flow forecast. The mobile operator cited a challenging economic environment.

ECONOMIC NEWS: Producer price index for final demand inched up by 0.2% in October, compared to the 0.4% increase originally reported for the previous month, matching a revised uptick in September, according to the Labor Department report released on Tuesday. The report also showed the annual rate of producer price growth slowed to 8% in October from 8.4% in September.

Among Indian ADR, INFOSYS was up 1.1% at $19.76, HDFC Bank added 1.6% to $69.43, ICICI Bank added 2.7% to $23.05, WNS Holdings added 1.4% to $83.69, and Dr Reddy's Labs grew 1.1% to $55.03. Tata Motors fell 0.3% to $27.03 and Azure Power Global shed 0.8% to $6.04. Wipro was steady at $4.99.

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