Proactive Investors -
- FTSE 100 tumbles, down 100 points at 7,407
- Wage growth hits record high, unemployment rate jumps
- Marks & Spencer soars on strong food and clothing sales
US stocks lower but Home Depot rises after results
As expected, US stocks have opened lower as concerns over a slowdown in economic growth in China weighed on global markets.
Shortly after the opening bell, the Dow Jones Industrial Average was down 154.93 points, 0.4%, at 35,152.70, the S&P 500 was down 18.34 points, 0.4%, at 4,471.38 and the Nasdaq Composite was down 27.52 points, 0.2%, at 13,760.81.
There were signs that consumer spending was remaining resilient in the face of interest rates rises as July’s retail sales figures showed a 0.7% month-on-month rise, ahead of forecasts for growth of 0.4%. Online sales were given a boost by Amazon (NASDAQ:AMZN) Prime Day.
Andrew Hunter at Capital Economics said: “The 0.7% m/m jump in retail sales in July suggests that tighter monetary policy is still having remarkably little impact on real economic activity, but that isn’t necessarily a problem for the Fed when the evidence continues to suggest that inflationary pressures are fading rapidly.”
Sticking to the retail theme and Home Depot Inc (NYSE:HD) rose 2.2% after reporting better-than-expected second quarter sales and earnings.
However, sales were still 2% lower than the year before and the retailer said consumers were still wary picking up big-ticket items.
Nvidia rose 3.0% after UBS raised its price target to $540 from $475 and reiterated a buy rating.
The broker notes that expectations are already sky-high but advises investors to stick with it despite the recent pullback in the stock over the past month.
US retail sales lifted by Amazon Prime Day
Consumer spending held up well in July latest figures showed, with online sales boosted by Amazon Prime Day.
Figures released by the Commerce Department showed retail sales rose a seasonally adjusted 0.7% in July, better than the 0.4% FXStreet compiled consensus. Excluding autos, sales rose a robust 1%, also against a 0.4% forecast.
July’s numbers were boosted by a 1.9% jump in spending at online retailers, boosted by Amazon Prime day, while sporting goods and related stores increased 1.5% and food service and drinking places rose 1.4%.
On the downside, furniture sales slumped 1.8% and electronics and appliance stores reported a 1.3% drop. Gas station sales rose just 0.4% on the month despite rising prices at the pump.
US stock futures remain firmly in negative territory after the report with Dow futures now down 0.7% although futures for the Nasdaq have improved marginally, now down only 0.5%.
Here's a quick recap of the risers and fallers onthe junior market today
Shares in Abingdon Health PLC (LON:ABDX) pinged 17% higher to 10.25p after getting a positive result from Tesco (LON:TSCO) to stock what it says it the first-ever saliva pregnancy test.
Verditek PLC jumped 17% as the solar panel specialist announced a potential deal with Net Zero Valley (NZV), an Italian business in ESG-only investor SerendipEquity's portfolio.
Shares of Danish jewellery manufacturer Pandora surged by 2.7% following the company's announcement of an upward revision to its full-year revenue forecast.
PHSC PLC (LON:PHSC) shares surged by 33% following the announcement of a new share buyback programme.
Shares of Victoria plc, the flooring company, dropped 10% following the announcement that its auditors need additional time to finalise their procedures.