The major indexes rose to session highs in afternoon trading on Tuesday. The Dow Jones Industrial Average rose 0.6% after stronger economic data quelled recession fears for the moment.
Consumer confidence rose to a strong 109.7, higher than the consensus forecast of 105.5 and May's revised 102.5. New orders for durable goods rose 1.7% in May after April's revised 1.2% increase. Shipments of manufactured goods rose 1.7% after falling 0.6% in April.
The Case-Shiller home price index rose 0.9%, above views for a 0.5% increase, according to Econoday.
New home sales rose to 763,000 in May from April's 680,000.
The personal income and outlays number comes out Friday and will include a key inflation reading.
The S&P 500 rose 1% while the Nasdaq led with a 1.5% gain at 1:30 p.m. ET. Volume on the NYSE and Nasdaq was higher vs. the same time Monday.
The small-cap Russell 2000 was up nearly 1.5% at the hour, while the Innovator IBD 50 ETF outperformed with a solid 2.3% gain.
Crude oil fell to $69.13 a barrel. The yield on the benchmark 10-year Treasury note rose four basis points to 3.76%.
Dow Jones Stock Walgreens Falls On Earnings
Dow Jones component Walgreens Boots Alliance fell sharply after the drugstore chain reported a weak outlook as demand for Covid vaccines fell off a cliff. In May, Covid officially stopped being a public health emergency in the U.S.
Among drug stocks, Eli Lilly rose after its weight-loss injection retatrutide showed promising results in a trial. The stock is holding up above the 21-day line and is near all-time highs.
In medical products, IBD 50 growth stock Alphatec added to gains after a breakout Monday at 17.13. Shares are still in a buy zone, according to IBD MarketSmith chart analysis.
Also in the IBD 50, Dynatrace is rising after testing the 21-day line. DT was also Monday's IBD Stock Of The Day.
Also in the Dow Jones, shares of Apple rose 1%. The company plans to launch a new Apple Watch Ultra along with the iPhone 15 this year, CNBC reported, quoting an initial report by Bloomberg.
Tech Futures Fall; Nvidia, AMD Slide On AI Chip Export Ban Report
Tesla Q2 Deliveries Loom
Meta Platforms rose on a Citi price upgrade to 360 from 315. Meta is on the IBD Leaderboard.
Tesla bounced after falling Friday and Monday following some recent downgrades. But a price upgrade from Deutsche Bank to 230 from 200 with a buy rating today suggests that the massive 96% Tesla run this year may not have ended. Analysts expect the EV leader's second-quarter deliveries, due this weekend, to rise a record 74% to 445,000.
Earlier downgrades include Goldman Sach's recent neutral rating from buy with a higher price target of 248. Morgan Stanley cut its rating to neutral from overweight, also increasing the price target to 250 from 200. Tesla cleared a resistance level around 217 and is testing the 21-day moving average.
Shares also rose as Volvo became the latest EV maker to adopt Tesla's charging technology, with access to 12,000 charging stations. General Motors, Ford and Rivian entered similar deals with Tesla recently. Cars will be fitted with Tesla-type charging plugs starting in 2025.
In a test of support for one of the market's cornerstones, shares of Alphabet are bouncing after falling to the 50-day moving average following a three-week pullback.
Delta Air Lines rose more than 6%. The airline expects earnings at the higher end of its previous estimates and hiked its views for free cash flow for the year. United Airlines broke out of a cup with handle with a 54.05 entry. Volume is running well above average.
Nike rose 2% in light volume. The company reports earnings on Thursday. The Dow Jones leader is clearing the 200-day line.
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