Shares of retailers and other consumer companies rose after a surprisingly strong tally of October sales and a robust earnings report from Home Depot.
"The U.S. consumer shrugged off higher prices and opened their pocketbooks in October," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group, in a note to clients.
Sales at U.S. retail stores, online sellers, and restaurants rose by a seasonally adjusted 1.7% in October compared with the previous month, the Commerce Department said. "Don't forget the consumer makes up two-thirds of the economy, so this is another great sign for our economy as we head into the holiday spending season," said Ryan Detrick, chief market strategist at brokerage LPL Financial, in a note to clients.
Retailer earnings reports were mixed. Walmart shares fell amid concerns about demand at the world's largest retailer by sales. Home Depot shares rallied after the home-improvement giant posted sales growth ahead of Wall Street targets, suggesting a boom in do-it-yourself projects is outlasting lockdown orders.
Kering shares rose after analysts at brokerage HSBC said the Gucci owner could see a lift from a rebound in demand for luxury wear.
Peloton Interactive announced a $1 billion stock offering, just weeks after the maker of connected fitness equipment said it didn't need additional capital to weather wider-than-expected losses and slowing growth.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
11-16-21 1721ET
