U.S. Stocks Show Resilience Despite Retail Woes
On Thursday, May 15, U.S. stocks managed a slight uptick, despite worrying retail data. The Dow Jones climbed to 42,191, gaining 140 points or 0.33%. The S&P 500 also saw a modest rise of 18.75 points, or 0.32%, reaching 5,911. The tech-heavy Nasdaq, though, was nearly flat at 19,140, down just 8 points or 0.04%.
These gains came against a backdrop of sluggish retail sales. April’s retail sales growth slowed to just 0.1%, a stark contrast to March’s 1.7% increase. This slowdown suggests consumers may be cutting back, possibly due to anticipated price hikes.
Walmart’s CFO,John David Rainey,added to inflation fears by hinting at potential double-digit price increases. consequently,Walmart’s stock dipped 1.05%, despite its usual status as a safe bet during inflation.
Other companies faced their own challenges. UnitedHealthcare’s stock plummeted 13.74% following reports of a possible criminal inquiry for Medicare fraud. The day before,CEO Andrew Witty unexpectedly resigned.
Coinbase, a new S&P 500 entrant, saw its stock drop 6.58%. CEO Brian Armstrong disclosed a $20 million ransom threat. Though, the real cause might be an SEC probe questioning the accuracy of its user numbers, a key metric in its 2021 IPO filing.
