Stocks Opened Lower as Optimism Stalled

U.S. stocks opened lower on Tuesday as momentum from Monday’s rally lost steam. The Dow Industrial Average lately fell 331.77 points, or 1.11%, to 29,618.67. The S&P 500 declined 25.75 points, or 0.71%, to 3,601.16. The Nasdaq Composite gave up 25.37 points, or 0.21%, to 11,898.76.

Oil futures traded lower Tuesday, pulling back a day after progress toward a COVID-19 vaccine fueled sharp gains for crude. West Texas Intermediate crude for December delivery fell 14 cents, or 0.3%, to $41.20 a barrel. January Brent crude was off 13 cents, or 0.3%, at $43.69 a barrel.

U.S. retail sales increased by 0.3% in October over September, according to the Commerce Department’s advance monthly report, following a downwardly revised 1.6% rise during the previous month.

Walmart (WMT) posted third-quarter sales growth that blew past consensus expectations, as customers continued to stock up on essentials during the ongoing pandemic. Walmart’s U.S. comparable sales, excluding gas, increased 7.1%, versus the 4.3% rise expected, according to Bloomberg data.

Home Depot (HD) reported third-quarter results that again topped estimates, as customers continued to spend on home-improvement projects. Comparable sales in the U.S. climbed 24.1% in the third quarter, well above the 17.4% consensus estimate, and holding about steady after a 25% gain in the second quarter. Net sales of $33.5 billion grew 23% over last year, and earnings of $3.18 per share were better than anticipated by 13 cents.