Here Are 3 Hot Things to Know About Stocks Right Now
- Stocks ended higher Tuesday after the Commerce Department eased restrictions on China's Huawei Technologies.
- Home Depot (HD - Get Report) rose slightly after beating first-quarter earnings expectations but missing on same-store sales growth.
- Kohl's (KSS - Get Report) missed Wall Street's first-quarter earnings expectations and slashed its 2020 profit guidance as comparable-store sales at the struggling retailer slumped amid a 'slower' start to the year. The stock fell 12%.
Wall Street Overview
Stocks ended on a high note Tuesday and the tech sector rebounded after the U.S. Commerce Department moved to ease restrictions on the ability of China's Huawei Technologies to do business with U.S. companies.
The Dow Jones Industrial Average ended up 197 points, or 0.77% to 25,877, the S&P 500 climbed 0.85%, and the tech-heavy Nasdaq rose 1.08%.
Among those rising in the tech sector were Broadcom (AVGO - Get Report) , up 1%; Qualcomm (QCOM - Get Report) , up 1.5%; Lumentum Holdings (LITE - Get Report) , up 3.9%, and Intel (INTC - Get Report) , up 2.1%.
Commerce Secretary Wilbur Ross said Huawei will be able to access U.S. technology and purchase equipment from American companies for up to 90 days in order to maintain existing network and update handsets. U.S. corporations, meanwhile, will use the time to source alternative suppliers and prevent domestic systems --especially in rural areas -- from crashing. The move follows a decision last week to lock Huawei out of U.S. markets.
However, China hinted about reprisals, with China's EU Ambassador Zhang Ming telling Bloomberg that "this is wrong behavior, so there will be a necessary response."
Home Depot (HD - Get Report) reported stronger-than-expected first-quarter earnings and confirmed its full-year earnings guidance, but same-store sales growth rates suffered due to unfavorable February weather. Shares were up slightly to $191.36.
Merck (MRK - Get Report) said it agreed to buy privately held Peloton Therapeutics for about $1 billion in cash, giving it access to Peloton's molecular therapy biotech treatments currently in development for patients with cancer and other non-oncology diseases. Shares were up 0.79% to $79.50.
In economic news, sales of existing U.S. homes fell 0.4% in April from March to a seasonally adjusted annualized rate of 5.19 million units, the National Association of Realtors said. Sales were 4.4% lower compared with April 2018.