Midday Market Update: Stock Gains Ease as Economic Data Has Wall Street Soaring

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Stock gains eased by midday Tuesday as retail sales data impressed by a wide margin. 

All three major U.S. indices rose substantially, with the S&P 500 up by about 1.5% by noon, after having gained more than 2% in the morning. The 10-Year Treasury yield rose to 0.75% after having risen to 0.77% in the morning. Yields rise as prices fall. 

Retail sales for the month of May rose 17% year-over-year, beating economists estimates of 8%, serving as the catalyst for the positive sentiment Tuesday. This is another sign of a speedy recovery from the economic carnage caused by the coronavirus. More virus cases and lockdowns would undermine this narrative. 

Outperforming Tuesday were cyclical and economically sensitive stocks like small caps. 

THe S&P 500 Equal Weight Index Consumer Discretionary rose more than 2%. Home Depot  (HD) - Get Report rose 3%, The Russell 3000 rose about 2%. Energy etf  (XLE) - Get Report rose about 2%. The invest KBW bank ETF  (KBWB) - Get Report rose almost 2%, as the yield curve has expanded all week. 

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