Strong Week On Wall Street
Monday-Wednesday’s Action: Pullback, What Pullback?
On Tuesday, stocks edged higher in the morning but quickly reversed and closed lower after the S&P 500 encountered stubborn resistance near 2020. 2020 has been formidable resistance since the big sell-off in late August. Stocks fell on Wednesday after shares of Wal-Mart ($WMT) plunged nearly 10%. The company said earnings will fall 6-12% during fiscal 2017 which was much lower than the Street’s estimate for a gain of 4%. The company announced a $20B buy back program on top of its $15B program that started in 2013. Semiconductor stocks surged on Wednesday after Intel ($INTC) announced numbers. Semiconductor stocks are a very important area for the market and the fact they rallied sharply bodes well for the bulls. Retail sales rose by 0.1% in September, missing estimates for a 0.2% gain. Retail sales for August were revised lower. Producer prices fell by 0.5%, missing estimates for a decline of 0.3%.