Investors had plenty of headlines to sift through Tuesday ahead of a mid-week break. As a reminder, Wednesday is a stock market holiday with the equities and bond markets closed in observance of Juneteenth.
In economic news, data from the Census Bureau showed retail sales rose 0.1% month-to-month in May, an improvement over April's revised 0.2% decline but below economists' forecast for a 0.2% increase.
Aron Bohlig, managing partner at ComCap, a boutique investment bank that works with several consumer-facing businesses, says his firm has witnessed the negative impact that higher interest rates and credit card rates have had on discretionary spending for most of the past year.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We are still seeing this broad-based weakness in discretionary spending at individual brands, retailers and marketplaces on a day-to-day basis," Bohlig adds. "Our outlook is that retail spending will remain depressed until rates fall, which suggests that discretionary spending categories will continue to be weak at least into early 2025."
Nvidia becomes the most valuable company in the world
In single-stock news, Nvidia (NVDA) continued its red-hot run higher, with the chipmaker adding 3.5%, or $115 billion in market value. NVDA's market cap now stands at $3.33 trillion, making it the most valuable company in the world.
Nvidia edged past Microsoft (MSFT, -0.5%) and Apple (AAPL, -1.1%), which both declined Tuesday, bringing their respective market caps to $3.31 trillion and $3.28 trillion.
Occidental Petroleum climbs after Buffett boosts his stake
Elsewhere, Occidental Petroleum (OXY) gained 1.8% after regulatory filings revealed Warren Buffett's Berkshire Hathaway (BRK.B, +0.2%) has been scooping up shares of the oil stock in recent weeks. Indeed, Buffett's holding company has bought 7.3 million shares of OXY since June 5.
Buffett & Co. began accumulating shares of the energy stock in the first quarter of 2022. At the end of Q1 2024, the holding company owned more than 248 million Occidental shares, accounting for 4.9% of the Berkshire Hathaway equity portfolio. Considering OXY is down nearly 6% since the start of the second quarter, Buffett is likely buying the dip on one of his favorite oil stocks.
Lennar tumbles on soft deliveries outlook
In earnings news, Lennar (LEN) slumped 5.0% as the homebuilder's soft fiscal third-quarter deliveries outlook offset a fiscal second-quarter beat.
Most of Wall Street is bullish toward LEN, but Wedbush analyst Jay McCanless has an Underperform (Sell) rating on the consumer discretionary stock. In addition to elevated mortgage rates, "the competitive threats to Lennar and the industry from higher inventories of new and existing homes for sale versus last year may be another headwind to new home demand," the analyst wrote in a recent note to clients.
As for the main indexes, the Nasdaq Composite (+0.03% at 17,862) and the S&P 500 (+0.3% at 5,487) managed to notch new record closing highs, while the Dow Jones Industrial Average ticked 0.2% higher to 38,834.
Related content
- Apple Shuts Down Buy Now, Pay Later Service in the U.S.
- Adobe Sued By FTC Over Hidden Fees, Cancellation Issues
- Are Banks Open on Juneteenth in 2024?
-
Stock Market Today: Stocks Gain on Tech, Auto Tariff TalkThe Trump administration said late Friday that it will temporarily halt tariffs on some Chinese tech imports.
-
Sam's Club Plans Aggressive Expansion: Discover Its New LocationsSam's Club expansion plans will open up to 15 new stores each year. Learn where they plan to open in 2025.
-
Stock Market Today: Stocks Gain on Tech, Auto Tariff Talk
The Trump administration said late Friday that it will temporarily halt tariffs on some Chinese tech imports.
-
What Is the Buffett Indicator?"It is better to be roughly right than precisely wrong," writes Carveth Read in "Logic: Deductive and Inductive." That's the premise of the Buffett Indicator.
-
10 Major AI Companies You Should KnowThese 10 AI companies are at the forefront of machine learning. Find out how they’re driving innovation and jostling to be the biggest players in the game.
-
How Baby Boomers and Gen Xers Are Redefining Retirement LivingBoth generations need to embrace change and leverage real estate as a dynamic asset in their retirement planning. Here's how financial advisers can help, too.
-
How Good Advisers Manage Risk in Challenging MarketsThey understand the difference between what might be real challenges to an investor's strategy and fear brought on by market volatility.
-
Financial Planning's Paradox: Balancing Riches and True WealthWhile enough money is important for financial security, it does not guarantee fulfillment. How can retirees and financial advisers keep their eye on the ball?
-
A Confident Retirement Starts With These Four StrategiesWork your way around income gaps, tax gaffes and Social Security insecurity with some thoughtful planning and analysis.
-
Should You Still Wait Until 70 to Claim Social Security?Delaying Social Security until age 70 will increase your benefits. But with shortages ahead, and talk of cuts, is there a case for claiming sooner?
