Dow Jones seals third straight day of losses as S&P and Nasdaq also fall
(Wednesday market close) U.S. equities extended...
(Wednesday market close)U.S. equities extended this week's broad slide Wednesday, sending theS&P 500® index (SPX) near a two-week low as a stronger-than-expected Retail Salesreport pushed Treasury yields higher and forced investors to further rein in expectations for interest rate cuts by the Federal Reserve.
Early Wednesday, the Census Bureau said U.S. retail sales rose 0.6% in December over November, above the Briefing.com consensus for a gain of 0.4% and the largest monthly gain since September. Compared to December 2022, retail sales surged 5.6%, suggesting consumer spending remained robust last year even as the job market and other aspects of the economy showed signs of slowing.
The sales report helped lift the benchmark U.S. 10-year Treasury note yield(TNX) to a five-week high near 4.13% and prompted investors to continue tempering beliefs an initial Fed rate cut could happen as soon as March.
"Consumers ended the year on a high," said Cooper Howard, director of fixed income strategy at the Schwab Center for Financial Research. The better-than-expected retail sales "bodes well for GDP. Overall, consumer spending remains healthy because people have jobs." Here's where the major benchmarks ended:
The S&P 500 index fell 26.77 points (0.6%) to 4,739.21; the Dow Jones Industrial Average®(DJI) lost 94.45 points (0.3%) to 37,266.67; theNasdaq Composite® (COMP) dropped 88.73 points (0.6%) to 14,855.62.
The 10-year Treasury note yield rose more than 3 basis points to 4.10%.
The Cboe® Volatility Index (VIX) climbed 0.95 to 14.79.
Retail sales jumped in December, showing strength of the American consumer
The numbers: Sales at retailers jumped 0.6% in...
The numbers: Sales at retailers jumped 0.6% in December to cap off a fairly robust holiday shopping season and underscore the resilience of a still-growing U.S. economy.
Economists polled by The Wall Street Journal had forecast a 0.4% increase. Taken together, sales in November and December suggest a better-than-expected holiday shopping season. November receipts rose 0.3%.
Retail sales represent about one-third of all consumer spending and offer clues on the strength of the economy. Sales grew a solid 5.6% in 2023, almost double the rate of inflation.
Big picture:The robust retail report bolsters the case for the Federal Reserve to wait a while before cutting interest rates given the strength of the economy, analysts say. It also shows little threat for now of recession.
The energy sector is off to a lower start, pressured by weakness in the...
The energy sector is off to a lower start, pressured by weakness in the underlying commodities and the major equity indices extending yesterday’s losses as optimism for aggressive rate cuts this year continues to fade away.
WTI and Brent crude oil futures dropped this morning as traders digested dim economic data from China, which raised concerns about future demand and a higher dollar. China’s economy grew less than expected in the fourth quarter amid their ongoing property crisis, deflationary pressures, and weak demand. The world’s second-largest crude importer’s GPD grew 5.2% in October-December from a year earlier, higher than 4.9% in the third quarter but slightly off a 5.3% forecast in a Reuters poll. The U.S. dollar index rose near a one-month high on comments from Federal Reserve officials which lowered expectations for aggressive interest rate cuts. OPEC’s Monthly Oil Market Report showed the global oil demand growth forecast for 2024 remains unchanged at 2.2 mb/d, with the OECD growing by around 0.3 mb/d and the non-OECD by about 2.0 mb/d. However, the report shows that global oil demand in 2025 is expected to grow robustly by 1.8 mb/d, y-o-y. The OECD is expected to grow by 0.1 mb/d, y-o-y, while demand in the non-OECD is forecast to increase by 1.7 mb/d.
Natural gas futures are extending yesterday’s sharp losses on forecasts for temperatures to turn warmer after the recent winter storms.
The US launched new strikes against Houthi targets in Yemen
The strikes—the third round since last week—targeted Houthi militants who were ...
The strikes—the third round since last week—targeted Houthi militants who were preparing to launch missiles at both commercial and US Navy ships in the Red Sea, according to military officials. The US also said it was searching for two Navy SEALS who went missing on Friday during an operation to seize Iranian-made missile parts on their way to the Houthis. The news comes as Houthi rebels continue to attack civilian ships for what they say is retribution for Israel’s war against Hamas in Gaza. Shell became the latest major company to suspend shipments through the Red Sea as the conflict escalated.
🔔 Before the opening bell: US stock futures fall early Wednesday after the latest economic reports from China failed to cheer the market.
Goldman Sachs isn’t sweating the economy.The bank is taking a more optimistic view of economic growth in 2024 compared to the rest of the Street. Goldman sees US GDP growth of 2%, and only a 20% chance of a recession, figures that are well below consensus estimates.
YouTube is allegedly making millions of dollars a year from advertising on climate change denial content, according to a new report.
Sean “Diddy” Combs and liquor giant Diageo resolved their legal dispute, dissolving all ties between the rapper and the Ciroc vodka and DeLeón tequila brands.
Burger King owner Restaurant Brands International said it’s buying the fast-food chain’s biggest franchisee for $1 billion and will spend another $500 million to overhaul hundreds of locations.
Elon Musk said he wants 25% voting control of Tesla, up from the 13% that the CEO currently owns.
Goldman Sachs and Morgan Stanley both revealed they topped revenue estimates yesterday, in a good day for big banks.
