(For a live blog from Reuters on the US, UK and European stock markets, click or type LIVE/ in a news window)
* Walmart sees lower profit decline this year
* Home Depot exceeds sales estimates
* US yields rise
NEW YORK, Aug 16 (Reuters) – The Dow Jones and S&P 500 closed higher on Tuesday as Walmart and Home Depot gained after stronger-than-expected earnings and outlook, while tech stocks fell and rose. weighed on the Nasdaq.
The S&P 500 Consumer Discretionary and Basics sectors rose sharply along with the S&P 500 Retail Index.
Walmart forecast a lower-than-expected annual profit decline, while Home Depot beat quarterly sales estimates.
The 10-year Treasury yield rose, weighing on technology and other high-growth stocks.
After struggling for most of the first half of the year, stocks have rebounded since mid-June, helped in part by better-than-expected earnings from Corporate America.
Investors have also been optimistic about the Federal Reserve’s ability to pull off a soft landing for the economy as it tightens policy and raises interest rates to reduce inflation, which has been high for decades.
“When you go from a bear market to a bull market, especially when the Fed is raising rates and the consumer is worried, you really want to see consumer discretionary buoyed by enthusiasm. And today’s movement today in discretionary names is positive for the market,” said Quincy Krosby, chief global strategist for LPL Financial in Charlotte, North Carolina.
According to preliminary data, the S&P 500 gained 8.64 points, or 0.20%, to end at 4,305.78 points, while the Nasdaq Composite lost 25.22 points, or 0.19%, to 13 103.14. The Dow Jones Industrial Average rose 239.46 points, or 0.72%, to 34,151.90.
Traders now see a 60% chance of a 50 basis point hike by the US central bank in September and a 40% chance of a 75 basis point hike.
Investor sentiment is still bearish, but more “apocalyptically,” according to BofA’s monthly survey of global fund managers in August. (Reporting by Caroline Valetkevitch in New York Additional reporting by Bansari Mayur Kamdar, Susan Mathew and Anisha Sircar in Bengaluru Editing by Anil D’Silva and Matthew Lewis)