“It’s definitely a good start for retailers” this earnings season, said Nick Raich, CEO of The Earnings Scout. “Expectations were very low for retailers coming into the season.”
The S&P 500 is also coming off a record-setting session, having notched on Monday its first record close since July 26. It traded 0.04 percent lower on Tuesday, with materials leading decliners.
Overall, stocks have been on a tear this year, with the Dow, S&P and the Nasdaq composite all hitting record highs and surging more than 10 percent. But some market experts are worried that a pullback may be close.
“There’s sort of a vacuum” in the market right now, said Marc Chaikin, CEO of Chaikin Analytics. “We’re banging up against resistance and there’s a lot of people on vacation. In this type of environment, bad news tends to send the market lower.”
Roberto Friedlander, head of energy trading at Seaport Global Securities, said in a note Tuesday that Monday’s trading volume was the lowest since 2007, excluding holidays.
Another sign the market may be primed for a pullback is increasing selling of tech stocks. According to Bank of America Merrill Lynch, tech stocks saw their fourth straight week of outflows.
Tech has been the stalwart of the U.S. stock market this year, rising more than 20 percent in the time period.