While buying interest was relatively subdued, stocks moved modestly higher over the course of the trading day on Tuesday. The strength on the day offset the weakness seen in the previous session, with the Dow and the S&P 500 reaching new record closing highs.
The major averages gave back some ground in late-day trading but remained in positive territory. The Dow ended the day up 52.30 points or 0.3 percent to 15,387.58, the Nasdaq rose 5.69 points or 0.2 percent to 3,502.12 and the S&P 500 climbed 2.87 points or 0.2 percent to 1,669.16.
The modest strength on Wall Street was partly due to a positive reaction to the release of better than expected quarterly results from home improvement giant Home Depot (HD).
Home Depot, a Dow component, reported first quarter earnings of $0.83 per share on net sales of $19.1 billion, while analysts had expected earnings of $0.77 per share on sales of $18.7 billion. The company also raised its full-year earnings and sales guidance.
Buying interest was also generated in reaction to comments from Federal Reserve officials that eased concerns about the central bank paring back its asset purchase program.
In a speech in Frankfurt, St. Louis Fed President James Bullard said quantitative easing has been the most reliable tool while interest rates have been near zero and said the Fed should continue with the program.
Bullard still noted that the rate of purchases should be adjusted appropriately in view of incoming data on both real economic performance and inflation.
New York Fed President William Dudley delivered a separate speech in New York questioning whether the adjustment to the pace of purchases would be up or down.
Nonetheless, traders remained reluctant to make any significant moves ahead of remarks by Federal Reserve Chairman Ben Bernanke, who is due to testify before the Joint Economic Committee of Congress on Wednesday.
Bernanke's remarks could have a big impact on expectations regarding the Fed's plans to slow the pace of its asset purchase program.
Sector News
Trucking stocks showed a substantial move to the upside on the day, driving the Dow Jones Trucking Index up by 1.8 percent. The gain extended a recent upward move by the index, which reached a record closing high.
Arkansas Best (ABFS) and YRC Worldwide (YRCW) turned in two of the trucking sector's best performances, advancing by 5.2 percent and 4.5 percent, respectively.
Steel stocks also turned in a strong performance, resulting in a 1.1 percent gain by the NYSE Arca Steel Index AK Steel (AKS) helped to lead the sector higher, jumping by 4 percent.
Pharmaceutical, commercial real estate, and telecom stocks also saw some strength on the day, although buying interest remained subdued.
Meanwhile, gold stocks came under pressure, giving back ground after moving sharply higher over the course of the previous session. The NYSE Arca Gold Bugs Index fell by 2.7 percent, partly offsetting Monday's 6 percent gain.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. While Japan's Nikkei 225 Index inched up by 0.1 percent, Hong Kong's Hang Seng Index ended the day down by 0.5 percent.
Meanwhile, the major European markets all moved to the upside on the day. The U.K.'s FTSE 100 Index advanced by 0.7 percent, while the French CAC 40 Index and the German DAX Index edged up by 0.3 percent and 0.2 percent, respectively.
In the bond market, treasuries showed a notable turnaround after coming under pressure in early trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, ended the day down by 2.1 basis points at 1.944 percent after reaching a high of 1.998 percent.
Looking Ahead
While Bernanke's Congressional testimony is likely to be in the spotlight on Wednesday, traders will also be presented with a report on existing home sales as well as the minutes of the latest Fed meeting.
On the earnings front, retailers Target (TGT), Staples (SPLS) and Lowe's (LOW) are among the companies due to release their quarterly results before the start of trading on Wednesday.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.