4:07pm: Citigroup, Paramount pop on news of Berkshire Hathaway stake
The Dow gained 432 points, 1.3%, to close at 32,655. The Nasdaq did even better, adding 322 points, 2.8%, to 11,985, and the S7P 500 picked up 81 points, 2%, to land at 4,089.
Among the leaders were Citigroup Inc (NYSE:C) and Paramount Global, shares of which popped more than 7% and 15%, respectively, after Berkshire Hathaway disclosed holdings in the companies.
Meanwhile, Walmart Inc (NYSE:WMT) stock fell more than 11% after the retail giant's quarterly earnings missed expectations. The company increased its sales guidance but decreased its profit outlook.
12:05pm: Nasdaq leads US stock rebound
US stocks remained in positive territory at noon following the release of April retail spending figures that were in line with Wall Street expectations.
Retail sales not adjusted for inflation rose 0.9% in April, according to the Commerce Department, just below the consensus analyst expectation of 1%.
At noon, the tech-laden Nasdaq continued to lead the pack when it came to gains, up 223 points or 1.9% at 11,886 points.
The Dow was up 236 points or 0.7% at 32,460 points and the S&P had gained 54 points or 1.3% at 4,062 points.
IG chief market analyst Chris Beauchamp said a wave of buying continued to sweep over stock markets, but hopes that the low was in were misplaced.
“The next short-term bounce looks well under way across stocks, as beaten-down names see fresh gains. But while it might be the beginning of a much longer-term rally, the persistence of fears about a recession and higher prices means that the chances are high that this oversold surge has a few weeks of life in it before we see stocks reverse course again," Beauchamp said.
"Tech stocks, which have been hardest hit in the US, and the embattled European equity complex have seen the biggest percentage gains, which tells you that this about the tradeable bounce and is not a reason to go bargain hunting for the long term.”
Meanwhile, after reporting disappointing quarterly earnings on Tuesday morning, Walmart Inc (NYSE:WMT) stock had sunk about 10% at noon, trading at about $133 a share.
The company reported mixed results, exceeding analyst expectations in terms of revenue but falling short on adjusted earnings per share.
10.50am: Proactive North America headlines:
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CO2 GRO launches grape tomato phase of vegetable trial with The Cucumber Man
Newrange Gold says it is encouraged by exploration progress at Ontario gold properties
Lavras Gold (TSX-V:LGC) to fly drone aeromagnetic survey at its Lavras do Sul project in southern Brazil
BioLargo Inc (OTCQB:BLGO) announces it achieved record 1Q revenue as its subsidiary ONM Environmental reports its first profitable quarter
Logiq sees 1Q revenue of $8.1M powered by its AppLogiq platform-as-a-service business branded as GoLogiq
Electra Battery Materials updates ATM equity program to rasie up to C$20M for growth initiatives, exploration
Sonoro Gold reveals encouraging gold results from outside the current resource area at Cerro Calich
Silver Range Resources (AIM:RRL, ASX:RRS) details trenching results from its Cambridge joint venture project in Nevada
Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID) partners with letus to bring its privacy-first biometric technology to the real estate sector
Harbor Custom Development announces $5.4M sale of land tracts in Blaine, Washington to Noffke Landholdings
RespireRx Pharmaceuticals (OTCQB:RSPI) Interim CEO talks AMPAkines in treating GRI disorders at virtual conference
C3 Metals says deep drilling at its Jasperoide copper-gold project in Peru indicates a porphyry system
Vicinity Motor announces strategic partnership with Sustainability Partners to accelerate government fleet electrification
New Pacific Metals (TSX:NUAG, NYSE:NEWP) reveals positive drill results from its Carangas silver-gold project in Bolivia
Cardiol Therapeutics (TSX:CRDL, NASDAQ:CRDL) receives US FDA authorization for Phase II study of CardiolRx for recurrent pericarditis
Empress Royalty's Tahuehueto silver stream initiates pre-production
PlantX partners with Instacart to offer same-day delivery
Tribe Property Technologies announces the appointment of Shobana Williams as vice president, investor relations
HealthLynked (OTCQB:HLYK) announces acquisition of non-invasive cosmetic procedure provider Aesthetic Enhancements
Pure Gold Mining sees its revenue grow in 1Q off the back of higher gold sales from Red Lake operation
Dalrada says its heat pump selected by US government to reduce greenhouse emissions
Robinhood surges 30% after FTX exchange CEO takes stake in it
Guardforce AI (NASDAQ:GFAI) says it will offer new bundled robotic disinfection services in response to COVID-19 outbreak in China
Versus Systems sees sports partnerships blossom in 1Q report
Minto Metals strikes new extended offtake deal with Japanese titan Sumitomo Corp
Unrivaled Brands (OTCQX:UNRV) posts 907.5% revenue jump in 1Q thanks to transformation plan
The Greenrose Holding Company (OTCQX:GNRS) sees 1Q revenue bump thanks to acquisition of cannabis operator True Harvest
Alkaline Fuel Cell Power announces uplisting to OTCQB Venture Market
Nextech AR Solutions Corp. (CSE:NTAR, OTCQB:NEXCF, NEO:NTAR) says 1Q results show record growth in key 3D model and AR business
Soma Gold posts positive drill results from Estrella-Diamantina trend at Zara property, Colombia
Vicinity Motor says it maintained order momentum in 1Q as it expanded its North American distribution network
Recruiter.com reports 1Q revenue surge driven by growth in its recruiters on demand business and software subscriptions
Thesis Gold announces discovery of new West zone at Ranch gold-silver-copper asset in BC
Endexx Q2 sales jump 73% as mass retail growth rebounds
Trees Corporation (NEO:TREE.AQN) reports 1Q revenue of $1.7 million, up 225% after rolling out more stores
Mydecine reports productive first quarter as it cut expenses and increased efficiencies
Manganese X Energy says in discussions with potential partners; pursuing pilot program at Battery Hill Manganese Project
PyroGenesis Canada eyeing 'decades of exponential growth' as it posts first quarter results
Cryptocurrency insiders weigh in on what’s next for the embattled sector after recent market bloodbath
American Manganese delivers cathode precursor samples made from recycled material to third-party collaborators
The Valens Company (TSX:VLNS, OTCQX:VLNCF) announces separation of chair and CEO roles; appoints Andrew Cockwell as new chair of the board
Plurilock Security subsidiary Integra Networks receives partner award from Tenable
Kidoz Inc. (TSX-V:KIDZ) announces 47% surge in 1Q revenue to $2.28M
9:40am: US stocks rebound after the open
US stocks rebounded on Tuesday morning led by the tech-heavy Nasdaq which was up 241 points or 2% at 11,903 points just after the open.
The Dow had gained 373 points or 1.2% at 32,597 points and the S&P 500 was up 58 points or 1.5% at 4,065 points.
OANDA senior market analyst Craig Erlam said stock markets were in positive territory as investors were seeing value after a substantial sell-off in recent weeks but noted the rebound may not last.
“I'm not particularly convinced about the sustainability of such a move against the backdrop of high inflation, much higher interest rates and probable recessions but there's no doubting that the scale of the declines recently was bound to attract some back in,” Erlam said.
6.30am: Stocks seen opening higher
US markets are expected to open higher ahead of the release of retail sales data that will provide another indication of the health of the US economy.
Futures for the Dow Jones Industrial Average rose 1.54% in Tuesday pre-market trading, while those for the broader S&P 500 index gained 1.79% and the Nasdaq added 2.18%.
The Dow ended nearly flat on Monday after spending time on both sides of the flatline. The blue-chip index picked up 27 points, less than 0.1%, to end the day at 32,223. The Nasdaq dropped 142 points, or 1.2%, to 11,663, and the S&P 500 slid 15 points, or 0.4%, to 4,008.
News that retail sales and industrial output in China had dropped in April weighed on sentiment, underscoring wider concerns about the global economy and signaling that the uncertain tone in equity markets is likely to continue.
Also, investors continue to worry that higher inflation and rising interest rates will crimp economic growth.
“Investors remain unable to shake off the shackles of inflationary and recessionary concerns, as markets continue to struggle to find a sustainable level,” commented Richard Hunter, head of markets at interactive investor. “The situation is particularly acute in the US, where fears remain that over-enthusiastic tightening by the Federal Reserve could lead the economy into recession. With interest rate rises of 0.75% already in the bag, it is expected that two further increases of 0.5% will follow in short order as the Fed wrestles with the pressure which inflation has brought.”
After gaining 0.5% in March, retail sales for April, scheduled for release at 8.30am Eastern Time, are expected to show a 0.7% month-over-month rise, according to a poll of economists by Reuters.
“The resolve of the consumer will face another test later in the day with the release of the retail sales number for April, providing further colour from a vital cog in the US economy,” Hunter added.