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How to Trade October’s BIG Surge in Retail Sales

by | Nov 16, 2021 | Market Updates

Better-than-expected retail sales data, combined with strong earnings from Dow stocks, caused U.S. stock futures to remain steady — and more in Tuesday’s stock market recap.

Retail sales rose 1.7% compared to estimates of 1%. This is important because retail sales make up about 75% of the U.S. economy.

And Dow stocks Walmart Inc. (NYSE: WMT) and Home Depot Inc. (NYSE: HD) posted strong earnings (more on this below). 

The Dow Jones, S&P 500 and Nasdaq all dipped slightly in premarket trading but are still less than 1% away from record highs posted Nov. 8.

The 10-year Treasury yield is also slightly lower but still above 1.6%.

And that’s also on my radar… with inflation soaring, why isn’t the 10-year Treasury yield higher? 

Stock Market Recap: By the Numbers

This morning’s stock market futures recap: 

DOW (mini)

  • Close: 36,087.45
  • Futures: 36,066
  • Change: +57

S&P 500 (mini)

  • Close: 4,682.8
  • Futures: 4,679.75
  • Change: +0.5

NASDAQ (mini)

  • Close: 16,189.12
  • Futures: 16,179.75
  • Change: -8

RUSSELL (mini)

  • Close: 2,400.93
  • Futures: 2,396.8
  • Change: -4.2

Note: Updated as of 9 a.m. EST.

Roger’s Radar: Big Retails Big Earnings

We still have big retail numbers coming in this week from some major retailers like Walmart and Home Depot. 

Walmart on Tuesday raised its annual sales and profit forecast in anticipation of a surge in demand for toys  and apparel during the holiday season, even amid global supply chain issues. 

Per Reuters:

  • Walmart raises annual sales and profit forecast
  • Shares flat in pre-market trade
  • Q3 sales at U.S. stores open at least a year rose 9.2%
  • Q3 gross profit rate drops 42 bps on supply chain costs

Home Depot beat quarterly sales estimates by $2 billion on the back of a strong housing market and more builder and handyman hiring by many Americans completing home home improvement projects. 

Net earnings rose 20.3% to $4.13 billion in the third quarter, or about $3.92 per share.

Per Reuters: 

Same-store sales rose 6.1% in the third quarter, beating estimates of a 1.4% increase, according to Refinitiv IBES data. Overall net sales rose nearly 10% to $36.82 billion, beating estimates of $35.01 billion.

In this morning’s stock market recap video, you’ll discover what to expect from the long bond this week… which two sectors are set to move sharply… whether China’s retail data is strong or weak… whether market internals are shifting gears… the top sector and two top stocks… and the weakest sector with the two weakest stocks. 

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to! 

P.S. How to Trade Soaring Volatility

We’re reaching the end of the year and volatility has picked up… With pending Federal Reserve action, ongoing supply chain issues and inflation dominating the headlines… it doesn’t seem likely to calm down.

That’s why Joy of the Trade Head Trader Jeff Zananiri has found a way to trade this volatility… 

It’s not based on tracking a complicated list of stocks or using complex research methods… And it doesn’t involve trying to guess when volatility could show up in a single stock.

It’s based on a ticker built to bottle up all of the volatility in the markets in one place!

See How Jeff Plays Volatility

On Tuesdays, I’ll detail the strongest and weakest sectors in the entire market. I’ll tell you exactly where I’d put my money and go long, and which ones I’d avoid or even short. Using my proprietary momentum indicator, you’ll get actionable ideas on every market sector, every single Tuesday.

Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.

WRITTEN BY<br>Roger Scott

Roger Scott

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