US Stocks surge as retail sales, industrial production rebound

The US stocks finished volatile session higher on Tuesday, 16 June 2020, as bargain hunting continued after the release of a report from the Commerce Department showing retail sales rebounded by much more than anticipated in the month of May. Positive sentiment was also generated by better-than-expected U.S. industrial production data for May and report of progress on a coronavirus therapeutic drug. Further boosting sentiments was reports that U.S. President Donald Trump administration is preparing a one-trillion-dollar infrastructure proposal to shore up the U.S. economy, which has been battered by the novel coronavirus crisis.

At closing bell, the Dow Jones Industrial Average rose 526.82 points, or 2.04%, to 26,289.98. The S&P 500 index climbed 58.15 points, or 1.89%, to 3,124.74. The tech-heavy Nasdaq Composite Index surged 169.84 points, or 1.75%, to end at 9,895.84.

 

ECONOMIC NEWS: US Industrial Output Rebounds In May- US industrial production jumped by 1.4% in May after plummeting by a downwardly revised 12.5% in April, the Federal Reserve reported on Tuesday. The rebound in industrial production came as manufacturing output spiked by 3.8% in May following a 15.5% nosedive in April. Most major industries saw increases in output as many factories resumed at least partial operations following the coronavirus shutdowns, with the largest gain registered by motor vehicles and parts. Meanwhile, the report said mining output tumbled by 6.8% in May after plunging by 6.1% in April, while utilities output slumped by 2.3% after inching up by 0.1% in the previous month.

US Retail Sales Skyrocket 17.7% In May As Stores Reopen- US retail sales skyrocketed by 17.7% in May after plunging by a revised 14.7% in April as stores began to reopen following the coronavirus lockdown, the Commerce Department released a report on Tuesday. The record increase in retail sales was partly due to a substantial rebound in sales by motor vehicle and parts dealers, which soared by 44.1% in May after tumbling by 12.3% in April. Excluding the rebound in auto sales, however, retail sales still surged up by 12.4% in May after plummeting by 15.2% in April. Ex-auto sales were expected to jump by 5.5%. Sales by clothing and accessories stores showed a particularly sharp increase, catapulting by 188.0% in May following a 63.4% nosedive in the previous month. The report also showed significant increases in sales by furniture and home furnishing stores, sporting goods, hobby, musical instrument and book stores, and electronics and appliance stores. Core retail sales, which exclude automobiles, gasoline, building materials and food services, also surged up by 11.0% in May after plunging by 12.4% in April.

Among Indian ADR, WNS Holdings inclined 1.65% to $54.94, HDFC Bank added 2.25% to $42.72, and ICICI Bank grew 0.56% to $8.96, while Vedanta fell 1.81% to $5.41, INFOSYS shed 1.08% to $9.12, Dr Reddys Labs dropped 1.45% to $53.07, Wipro dropped 0.3% to $3.35, and Tata Motors dropped 5.96% to $6.31.

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