Wall Street Heads Higher As Retail Sales Inch Up

Wall Street was heading toward a strong open on Tuesday as investors took in another batch of earnings from retailers that could reveal how persistent inflation is impacting consumer spending, the Associated Press (AP) reported.

Photo Insert: Futures for the S&P 500 jumped 1.5% while the same for the Dow industrials was 1.1% higher.

Futures for the S&P 500 jumped 1.5% while the same for the Dow industrials was 1.1% higher, despite mounting doubts over the US economic outlook that has dragged down markets for six weeks.

The Commerce Department reported Tuesday that retail sales in April rose 0.9%, a solid increase that underscores Americans’ ability to keep ramping up spending even as inflation persists at nearly a 40-year high.

Investors also are watching for comments by Federal Reserve officials that might provide insight into the US economic outlook and future policy moves.

Signs of progress in China’s effort to bring outbreaks of coronavirus under control appeared to be outweighing concern over weaker than expected US and Chinese economic data.

“Markets remain in fight or flight mode while rolling the dice on recession odds,” Stephen Innes of SPI Asset Management said in a report. He added that, “traders seem to be in the mood to stay bearish until proven otherwise. However, there is still a lingering risk- on tone despite horrific Chinese data.”

In Europe, Germany’s DAX picked up 1.5% in midday trading, and the CAC 40 in Paris gained 1.3%. Britain’s FTSE 100 added 0.8%. Those gains followed a strong showing in Asia, where Hong Kong’s Hang Seng jumped 3.2% to 20,590.99.

In Tokyo, the Nikkei 225 climbed 0.4% to 26,659.75. South Korea’s Kospi rose 0.9% to 2,620.44. Australia’s S&P/ASX 200 added 0.3% to 7,115.50 while the Shanghai Composite index was 0.7% higher, at 3,093.70.

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