MARKET SNAPSHOT: Stocks Cough Up Records As Retail Sales, PPI Disappoint
August 12 2016 - 10:05AM
Dow Jones News
By Ellie Ismailidou and Victor Reklaitis, MarketWatch
J.C. Penney sales miss; Treasury yields plunge, with the
benchmark 10-year yield at 1.49%
U.S. stocks opened slightly lower Friday, retreating from record
levels set a day earlier, when all three main benchmarks closed at
all-time highs, as investors grappled with weaker-than-expected
retail sales data and an unexpected drop in wholesale prices.
The main indexes were on track to finish the week roughly where
they started.
The S&P 500 index gained 4 points, or 0.2%, lower at 2,181,
weighed by a 0.6% drop in financial shares, followed by a 0.4% loss
in the health-care sector. Three of the index's 10 sectors were in
positive territory, with utilities leading the gains, up 0.5%.
The Dow Jones Industrial Average slipped 37 points, or 0.2%, to
18,576, pulled down by a 1% drop in Goldman Sachs Group Inc.(GS)
but buoyed by a 0.4% gain in Boeing Co.(BA).
Meanwhile the Nasdaq Composite Index was off 10 points, or 0.2%,
at 5,219.
U.S. retail sales stalled in July after three straight monthly
gains, according to government data released Friday.
(http://www.marketwatch.com/story/retail-sales-stall-in-july-2016-08-12)Retail
sales, which have increased 2.3% over the past 12 months, are an
important part of consumer spending, which is the backbone of the
U.S. economy.
Meanwhile, U.S. wholesale prices fell 0.4% in July, the biggest
drop since September 2015, according to a government report
released Friday.
(http://www.marketwatch.com/story/us-wholesale-prices-fall-sharply-in-july-2016-08-12)
(http://www.marketwatch.com/story/us-wholesale-prices-fall-sharply-in-july-2016-08-12)The
Producer Price Index was down 0.4% after jumping 0.5% in June,
while over the past year overall producer prices are down 0.2% in
unadjusted terms.
While stocks turned negative after the release, gold gained, the
dollar slumped and Treasury yields plunged to their second-lowest
level in history. The weak data are likely to firm the view for
some market participants that the economy isn't strong enough to
tolerate a rate increase in September, or later in 2016.
"Based on the PPI and retail-sales figures, all indications now
look like a [Federal Reserve] rate increase in 2016 is clearly off
the table," said Tom di Galoma managing director at Seaport Global
Holdings, in an email shortly after the release.
Among individual retailers, J.C. Penney Co. Inc.'s (JCP) shares
fell 1.1% after the retailer reported narrower-than-expected
second-quarter losses, though sales were just below estimates
(http://www.marketwatch.com/story/jc-penney-shares-fall-despite-smaller-second-quarter-losses-2016-08-12).
Meanwhile, Nordstrom, Inc. (JWN), shares jumped 6% in early trader
after posting better-than-expected sales and raised profit
projections for the year
(http://www.marketwatch.com/story/nordstrom-profit-tops-view-as-revenue-declines-2016-08-11).
(END) Dow Jones Newswires
August 12, 2016 09:50 ET (13:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Boeing (NYSE:BA)
Historical Stock Chart
From Apr 2024 to May 2024
Boeing (NYSE:BA)
Historical Stock Chart
From May 2023 to May 2024