Wall Street closes in red after Home Depot’s gloomy outlook, US data
NEW YORK, May 16 (Reuters) – U.S. stocks ended Tuesday’s session in the red after disappointing Home Depot forecasts and U.S. retail sales data for April showed lower consumer spending. Uncertainty over interest rates and negotiations over the debt limit also weighed on sentiment.
The Dow Jones closed up 1.01% to 33,012.14, the S&P 500 down 0.64% to 4,109.9 and the Nasdaq down 0.18% to 12,343,053.
Home Depot shares fell 2.15%, putting the biggest pressure on Dow Jones after the company lowered its full-year sales forecast. Its rival, Lowe’s, lost 1.16%.
“You could argue that people are tired of spending money on a home, they want experiences, they want to be out, they want to do other things, they don’t want to renovate their home according to Home Depot – it had terrible financial results,” said Ken Polcari of Kace Capital Advisors.
US retail sales rose 0.4% in April compared to the previous month. Analysts expected an increase of 0.8%.
“There is a sense that people are becoming a bit more sensitive to the successes of the Fed, and this ongoing debt ceiling saga is worrisome.”
US President Joe Biden and Republican Congressional leader Kevin McCarthy came close to a debt limit deal on Tuesday to avoid a catastrophic default, but a full consensus has yet to be reached.
Capital One Financial Corp jumped 2.05% after Berkshire Hathaway Inc on Monday said it had begun investing in the consumer lender.
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