Retailers and other consumer companies rose after strong earnings from Walmart and Home Depot.
Walmart said its U.S. chain's same-store sales grew 6.5% from a year earlier in the quarter ended July 29, better than the 6% growth it forecast in last month's update, as food inflation drew more affluent customers to its aisles.
Walmart's Chief Executive Doug McMillon said the necessity to slash prices on inventory is squeezing profit margins.
Home Depot shares rose after the home-improvement store said second-quarter sales rose sharply, with sales of interior decoration goods offsetting the weakening of pandemic-era demand for grills and other outdoor equipment.
Home Depot rival Lowe's rose in sympathy. Carnival Cruise Line said booking activity yesterday was almost double the level for the same day in 2019 after it revised Covid-19 protocols last Friday.
Shares of meme stock Bed Bath & Beyond rose by more than 30%. It was a typically counter-intuitive pile-on by the meme-stock traders, given that the troubled homeware retailer is facing liquidity concerns.
Similarly, bankrupt cosmetics company Revlon also rose sharply, echoing moves by Hertz Group at the height of the meme craze.
"Meme stocks are a sign that there is rampant speculation," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund.
Housing starts in July fell 9.6% from the month before to a seasonally adjusted annual rate of 1.45 million, the Commerce Department said.
Weak housing data bodes ill for economic growth, said Mr. Di Mattia.
Authentic Brands Group said it has agreed to buy Ted Baker for the equivalent of $254 million, adding the struggling British fashion label to its stable of brands that include Brooks Brothers and Reebok.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-16-22 1704ET
