After a strong upward movement seen in the previous session, stocks exhibited a relatively lackluster performance on Tuesday. Despite the choppiness, the S&P 500 and the Nasdaq both managed to close at new record highs.
All the major averages ended the day with modest gains. The S&P 500 rose by 13.80 points, or 0.2%, to 5,487.03. The Dow increased by 56.76 points, or 0.2%, to 38,834.86, and the Nasdaq edged up by 5.21 points, or less than 0.1%, to close at 17,862.23.
The mixed trading on Wall Street followed the release of varied U.S. economic data, with differing reports on retail sales and industrial production.
According to the Commerce Department, retail sales inched up by 0.1% in May after a revised decline of 0.2% in April. Economists had anticipated a 0.2% increase. Excluding motor vehicle and parts dealers, retail sales saw a slight dip of 0.1% in May following a similar revised decline in April. The ex-auto sales were expected to rise by 0.2%.
"Today's light retail sales report may be welcomed by those concerned about inflation, but it also hints at a potential slowdown in growth, which could be more damaging than a couple of interest rate cuts would ameliorate," commented Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance.
On a more positive note, the Federal Reserve reported a significant rise in industrial production, which jumped by 0.9% in May after remaining unchanged in April. Economists had forecasted a 0.3% increase.
### Sector News
Most major sectors experienced only modest changes. However, gold stocks displayed considerable strength due to an increase in gold prices, which led the NYSE Arca Gold Bugs Index to rise by 1.5%. Semiconductor stocks also showed significant strength, with the Philadelphia Semiconductor Index climbing 1.4% to a record high. Banking and computer hardware stocks saw some gains as well, whereas housing stocks experienced notable weakness, dragging the Philadelphia Housing Sector Index down by 1.6%.
### Other Markets
In overseas markets, the Asia-Pacific region mostly saw gains on Tuesday. Japan's Nikkei 225 Index jumped by 1.0%, and China's Shanghai Composite Index rose by 0.5%. The major European markets also moved upward. The French CAC 40 Index advanced by 0.8%, the U.K.'s FTSE 100 Index increased by 0.6%, and Germany's DAX Index went up by 0.4%.
In the bond market, treasuries rebounded after a pullback in the previous session. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, fell by 6.2 basis points to 4.217%.
### Looking Ahead
Following the Juneteenth holiday on Wednesday, trading on Thursday may be influenced by responses to reports on weekly jobless claims and housing starts.
