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* Walmart slides after cutting earnings forecast
* April retail sales rise in-line with estimates
* Indexes up: Dow 0.91%, S&P 1.23%, Nasdaq 1.60%
May 17 (Reuters) - U.S. stocks climbed on Tuesday, as
Citigroup led a surge in bank shares after Berkshire Hathaway
disclosed a big stake and solid retail sales in April eased
concerns about slowing economic growth.
Nine of the 11 major S&P sectors advanced in morning trade,
with financials up 2.3% and technology 1.8%.
Microsoft Corp, Apple Inc, Tesla Inc
and Nvidia Corp gained between 1.4% and 4%,
providing the biggest boost to the S&P 500 and the Nasdaq.
Banks jumped 3.5%, with Citigroup climbing 7%
after Warren Buffett's Berkshire Hathaway disclosed a
nearly $3 billion investment in the U.S. lender.
U.S. retail sales increased strongly in April as consumers
bought motor vehicles amid an improvement in supply and
frequented restaurants, providing a powerful boost to the
economy at the start of the second quarter.
"Retail sales is one of the core data points that the Fed
will look at as it thinks about how aggressive (it needs) to be
to rein in inflation," said Greg Bassuk, chief executive at AXS
Investments in New York.
"It should allay some of those (recession) concerns on the
basis that it is a positive signal on the trajectory and
potential health of the U.S. economy further into 2022."
Fed Chair Jerome Powell is scheduled to speak later in the
day and his comments would be parsed for clues on the path of
future interest rate hikes. Traders now see a nearly 80%
probability of a 50-basis point rate hike in June.
At 10:09 a.m. ET, the Dow Jones Industrial Average
was up 292.68 points, or 0.91%, at 32,516.10, the S&P 500
was up 49.19 points, or 1.23%, at 4,057.20, and the Nasdaq
Composite was up 186.51 points, or 1.60%, at 11,849.30.
However, rising costs weighed on Dow component Walmart Inc
, which fell 8.6% after the retail giant cut its annual
profit forecast, signaling a bigger hit to margins.
Shares of rival retailers Costco, Target,
Dollar Tree slipped between 0.6% and 2.2%.
Home Depot Inc added 1.9% after raising its full-year
sales forecast on firm demand for home improvement tools and
United Airlines Holdings Inc rose 6.1% after the
carrier lifted its current-quarter revenue forecast, boosting
shares of Delta Air, American Airlines and
A positive first-quarter earnings season has been
overshadowed by worries about the Ukraine war, soaring
inflation, COVID-19 lockdown in China and aggressive policy
tightening by central banks.
The S&P 500 is down nearly 2% and the Nasdaq
3.9% so far in May, largely hit by declines in growth stocks.
U.S.-listed Chinese stocks jumped on hopes that China will
ease its crackdown on technology sector and COVID-19 pandemic.
Advancing issues outnumbered decliners by a 4.05-to-1 ratio
on the NYSE and a 3.95-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 29 new
lows, while the Nasdaq recorded 18 new highs and 100 new lows.
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru;
Editing by Arun Koyyur)