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Stocks Close Higher on Strong Retail Sales, Home Depot Earnings

Stocks finished higher on Tuesday thanks to a positive October retail sales report and a strong earnings report from Home Depot.

Stocks were climbing Tuesday, boosted by Home Depot's  (HD) - Get Home Depot, Inc. (HD) Report earnings and a stronger-than-expected October retail sales report.

The Dow Jones Industrial Average finished up 54 points, or 0.15%, to 36,142, while the S&P 500 advanced 0.39%, and the Nasdaq gained 0.76% at last check.

October retail sales rose 1.7% from the previous month to a collective $638.2 billion, the Commerce Department said, well ahead of Wall Street's consensus forecast of a 1.2% gain, and 16.3% higher from the Covid-hit period in the fall of last year.

"With the robust retail sales read and solid start to retail earnings, it’s crystal clear that inflation isn’t standing in the way of consumers," said Mike Loewengart, managing director of investment strategy. "So despite some hiccups on the labor market and inflation fronts, this could serve as the vote of confidence investors needed signaling that the economy is still chugging along nicely."

Loewengart added that "as we narrow in on the holiday shopping season, the question remains if better than expected numbers from retailers from Q3 can continue to close out 2021."

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“We all know the worries, but this is yet another reminder the U.S. consumer remains extremely healthy," said Ryan Detrick, chief market strategist for LPL Financial. "Don’t forget the consumer makes up two-thirds of the economy, so this is another great sign for our economy as we head into the holiday spending season.”

Home Depot  (HD) - Get Home Depot, Inc. (HD) Report shares rose 5.8% after the home improvement retailer posted stronger-than-expected third-quarter earnings.

Walmart  (WMT) - Get Walmart Inc. Report posted stronger-than-expected third quarter earnings Tuesday, while boosting its full-year profit forecast. Shares slipped 2.5%, however, as Wall Street reacted to disappointing profit margins. CEO Doug McMillon said the company's costs are rising more quickly than its prices.

Lucid Group  (LCID) - Get Lucid Motors Report shares skyrocketed 23.7% after the luxury electric vehicle maker reported its first quarterly financial results as a public company and revealed a “notable” increase in vehicle reservations.

Shares of Tesla  (TSLA) - Get Tesla Inc Report powered higher, finishing up 4.1% and snapping a three-session losing streak, after Securities and Exchange Commission filings showed that founder and CEO Elon Musk has sold another $930 million in shares of the electric carmaker.