Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stock Market Today: Dow Closes Higher as Fed Minutes Revive Bid in Tech

Stock Markets May 25, 2022 22:36
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Yasin Ebrahim

Investing.com -- The Dow closed higher Wednesday, after the Federal Reserve's May meeting minutes showed the central bank was keen to move quickly on rate hikes to allow breathing room to reassess the pace of  tightening later this year.

The Dow Jones Industrial Average gained 0.6%, or 191 points, the Nasdaq was up 1.5%, and the S&P 500 added 0.95%.

"[P]articipants judged that it was important to move expeditiously to a more neutral monetary policy stance," the minutes showed. 

The need to hike rates quickly is a "red flag because it tells you that they need to move expeditiously in case of an impending recession," Johan Grahn, head of ETF Strategy at Allianz told Investing.com in an interview on Wednesday.

Front loading rate hikes would allow the central bank breathing room to consider a policy readjustment later this year. 

"I believe that they will follow through on the 50 basis point rate hikes in June and July because that will give them the best opportunity to adjust later," Grahn added.

Tech cut losses after the release of the minutes, buoyed by big tech, with Apple (NASDAQ:AAPL), and Alphabet (NASDAQ:GOOGL) cutting losses to end the day well above session lows. 

Consumer discretionary stocks did most of the heavy lifting for the broader market after Nordstrom's quarterly results helped improve sentiment on retailers.

Nordstrom (NYSE:JWN) reported a wider than expected loss in the first quarter, but revenue jumped to pre-pandemic levels to top Wall Street expectations, sending its shares more than 13% higher.

“JWN has demographics and product category skew advantages at this point in the re-open,” said Credit Suisse, but also flagged concerns about the uncertain economic backdrop of retailers in the second of half of the year.

Dick’s Sporting Goods (NYSE:DKS) reported a softer outlook for the full year, but first-quarter results beat on both the top and bottom lines. Its shares gained nearly 10%.

Urban Outfitters (NASDAQ:URBN) also reported record sales that overshadowed weaker-than-expected earnings and the impact of rising costs. Wall Street also pointed to strength in the retailer’s Anthropologie and Free People Movement brands.

“Despite the miss…sales at Anthro and FP Movement continue to perform well due to demand for apparel, dresses, and fashion,” B. Riley said in a note. “We continue to believe that URBN has upside as Anthro is seeing a recovery as consumers look for fashion and occassionwear.”

Bath & Body Works (NYSE:BBWI), Under Armour (NYSE:UAA), and Ralph Lauren Corp (NYSE:RL) were among the biggest gainers, while a climb in Tesla (NASDAQ:TSLA) also supported the sector.

Housing stocks, led by Toll Brothers (NYSE:TOL), were also in ascendency, shrugging off recent data pointing to a slowdown in the housing market.

Toll Brothers reported better-than-expected quarterly results, buoyed by strong demand for housing, though the home builder highlighted the impact of rising mortgage rates and softer macroeconomic conditions.

Lennar (NYSE:LEN), PulteGroup Inc (NYSE:PHM), and TRI Pointe Homes (NYSE:TPH) were higher.

In other news, Beyond Meat (NASDAQ:BYND) jumped more than 13% after the meatless company announced an endorsement deal with influencer Kim Kardashian.

Stock Market Today: Dow Closes Higher as Fed Minutes Revive Bid in Tech
 

Related Articles

Trump Media Company in Federal Probe of SPAC Deal
Trump Media Company in Federal Probe of SPAC Deal By Investing.com - Jul 01, 2022

By Yasin Ebrahim  Investing.com -- Donald Trump’s media company was subpoenaed by a federal grand jury earlier this week relating to a criminal probe, Digital World Acquisition...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email