Consumer Confidence Fuels Bullish Market Rally

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U.S. equities posted strong gains as The Conference Board reported that consumer confidence in June was the highest in a year-and-a-half, and on positive news about the travel industry. The Dow, S&P 500, and Nasdaq all rose on the same day for the first time since June 15. 

Delta Air Lines (DAL) helped lift airline stocks after it raised its outlook on demand. The sector also got a boost from expectations of record-setting travel volume during the July 4 holiday weekend. Shares of booking sites, hotels, and casinos benefited as well. It was a bounceback day for shares of Carnival Corporation (CCL) and other cruise lines after yesterday’s selloff. 

The positive consumer news sent shares of retailers, including Home Depot (HD), Nike (NKE), Macy’s (M), and Kohl’s (KSS), up. Tech stocks advanced, with shares of Meta Platforms (META), Apple (AAPL), Microsoft (MSFT), Tesla (TSLA), and Salesforce (CRM) climbing.

Generac Holdings (GNRC) shares jumped as demand for generators soared because of a blistering heat wave hit the Southern U.S. A Goldman Sachs upgrade sent Kellogg (K) shares higher.

Walgreens Boots Alliance (WBA) was the worst-performing stock in both the Dow and S&P 500 as the biggest U.S. drugstore chain slashed its full-year profit outlook, citing a slowdown in consumer spending and demand for COVID-19 products and services. Shares of rival CVS Health Corporation (CVS) also lost ground. 

Struggling electric truck maker Lordstown Motors (RIDE) declared bankruptcy and sued investment partner Foxconn Technology, and shares plummeted. Shares of Illumina (ILMN) tumbled after the genetic sequencing equipment manufacturer began laying off workers as it takes steps to cut expenses by $100 million. Gold prices dropped, and so did shares of Newmont Corporation (NEM) and other gold miners. 

Oil futures declined. The yield on the 10-year Treasury note rose. The U.S. dollar gained on the yen, but slipped versus the euro and pound. Most major cryptocurrencies traded higher. 

S&P 500 Winners and Losers for June 27, 2023