MARKET WRAP

Stocks rallied today after strong retail sales showed the consumer is spending.

The S&P was up 1.6%, while the Nasdaq Composite and Russell 2000 were both up around 2.3%.

The S&P is now up 3.7% on the week, on pace for its best performance of the year, according to CNBC.

The yield on the U.S. 10-year jumped above 3.9%, following the retail sales data, with the CME FedWatch tool now pricing in a 75% chance 25 basis point cut in September, a week ago it was pricing in a 55% chance of a double cut.

Consumer discretionary was the best-performing sector, up 3%, followed by tech which was up 2.6%.

Ulta shares were up 11%, making it the best-performing stock in the S&P 500, after a regulatory filing showed that Warren Buffett’s Berkshire Hathaway took a $266 million stake in the company last quarter.

Other top stocks include Super Micro, On Semiconductor, and Micron, all up more than 6%. The SMH semiconductor ETF was up 4%.

Meanwhile, Cisco rallied 6.8% for one of its best days since 2020 after reporting better-than-expected earnings after the close yesterday.

Walmart shares rallied 6.6% after the company beat on earnings and raised its full-year outlook.

MRKT MATRIX: August 15, 2024

Today’s Top Stories:

• Consumer spending jumped in July as retail sales were up 1%, much better than expected (CNBC)

• Walmart beats estimates, raises outlook as it sees stable consumer health (CNBC)

• Kroger Plans $1B in Price Cuts After Albertson Deal (Bloomberg)

• Wall Street volatility is breaking records and there are likely to be aftershocks, says UBS (CNBC)

• Investors Timing the Market See Biggest Hit on Sector Funds (Bloomberg)

• Why Falling Mortgage Rates Aren’t a Quick Fix for Frustrated Homebuyers (WSJ)

Today’s MRKT Call is Presented by FactSet

The Tech Stocks Partying Like it’s 1999

Dan Nathan, Guy Adami and Carter Worth break down the top market headlines and bring you stock market trade ideas for Thursday, August 15th.

Timecodes

• 0:00 - SPX Key Levels

• 17:45 - WMT

• 21:40 - CSCO, DELL, AMZN & INTC

• 32:50 - AMAT + Q&A

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