US Dow extends gain for fifth straight day

The US stocks moved mostly higher on Tuesday, 16 August 2022, with the Dow closing higher for the fifth straight session, as risk sentiment got a boost from Walmart and Home Depot better than expected second quarter results. The S&P 500 also joined the Dow in positive territory, while the tech-heavy Nasdaq closed down in a roller-coaster session.

At the close of trade, the Dow Jones Industrial Average index inclined 239.57 points, or 0.71%, to 34,152.01. The S&P500 index was up by 8.06 points, or 0.19%, to 4,305.20. The tech-heavy Nasdaq Composite Index decreased by 25.50 points, or 0.19%, to 13,102.55.

Total 6 of 11 S&P sectors ended higher, with consumer staples was the best performer, climbing 1.2% followed by consumer discretionary (up 1.1%). Real estate sector was the worst performer, erasing 0.4%, followed by energy (down 0.3%) and information technology (down 0.63%) sectors.

The continued advance by the Dow was partly due to strong gains by Walmart and Home Depot after both companies reported better than expected second quarter results. Meanwhile buying interest also supported in reaction to a report from the Federal Reserve showing U.S. industrial production increased by more than expected 0.6% in July following a revised unchanged reading in June.

However, market gains were capped after reports from the Commerce Department showing new residential construction tumbled by bigger than expected 9.6% to an annual rate of 1.446 million in July after slumping by 2.4% to a rate of 1.559 million in June. Building permits, an indicator of future housing demand, also fell by 1.3% to an annual rate of 1.674 million after inching up by 0.1% to a revised rate of 1.696 million in June.

Among Indian ADR, Dr Reddy's Labs advanced 0.48% to $53.88, Tata Motors added 2.2% to $31.02, WNS Holdings added 1.2% to $88.48 and ICICI Bank fell 0.67% to $22.35, and INFOSYS was up 0.2% to $20.15. Azure Power Global fell 8.2% to $11.25, Wipro was down 0.5% to $5.48, and HDFC Bank fell 1.3% to $64.94.

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