Stocks closed slightly higher on Wednesday as market participants reacted to stronger-than-expected January retail sales and their implications when it comes to the Federal Reserve's interest rate hiking campaign. The Dow Jones Industrial Average added about 40 points, while the S&P 500 Index and Nasdaq Composite were 0.3% and 0.9% higher, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Driving market moves Wednesday, U.S. retail sales topped expectations for January, rising 3% for the month, compared to estimates of a 1.9% gain, the Commerce Department reported Wednesday. Excluding auto sales, retail sales rose 2.3%, above estimates for a gain of 0.9%.
In other economic news, homebuilder sentiment for U.S. single-family homes rose in February to a reading of 42, according to the National Association of Home Builders/Wells Fargo Housing Market Index. This is the index's higher reading since September and the largest monthly gain since June 2013. Still, readings below the neutral level of 50 are considered negative.
"With the largest monthly increase for builder sentiment since June 2013, the HMI indicates that incremental gains for housing affordability have the ability to price-in buyers to the market," said NAHB Chairman Alicia Huey in a statement. "The nation continues to face a sizeable housing shortage that can only be closed by building more affordable, attainable housing."
On the earnings front, Roblox
Airbnb
In other stock news, shares of Tesla
Wednesday's moves come after a volatile session on Tuesday that saw all three major averages end the day flat after January's surprise CPI report. The month's CPI rose 0.5% month-to-month and 6.4% on an annual basis, while Core CPI (which excludes food and energy prices) climbed 0.4% and 5.6%, respectively.
Looking ahead, investors will continue to watch earnings reports, with readings from Zillow