SANTA MONICA, CALIF. — Digitally native models must take into account numerous things prior to launching into brick-and-mortar retail channels. Kirsten Hogan, main govt officer of Sana Sano Advancement Advisors, shared insights all through a presentation at NOSH Are living, a two-day convention manufactured by media corporation BevNET.com, Inc., in Santa Monica Dec. 1-2.
Central to developing an productive strategy is defining and aligning the “why” at the rear of growing to the bodily shelf.
“Do I want to achieve so substantially gross profits operate amount to catch the attention of enterprise capital money? Do I want to bolster a downstream exit? What specifically is my purpose?” Ms. Hogan explained. “Remember that target and stick to it all the way via your system.”
She outlined a “crawl, wander, run” method that consists of 1st launching in critical marketplaces exactly where current people reside and shop, then scaling functions and penetrating new channels and geographies, and lastly launching a countrywide, total-scale campaign throughout all channels.
“That comes with raising complexity, rising risk and rising worth,” she reported.
Manufacturer house owners really should consider which retail channels represent the most effective match, Ms. Hogan claimed, citing a array of solutions, together with grocery chains, purely natural and specialty retailers, mass retailers and much more.
“Really understanding your possibilities and figuring out the place your finest targets are is 1 of the most essential points you do as you are examining,” she included. “Think about your tolerance for expansion. How do I want to grow? Can I scale and go into Walmart initially or Kroger to start with or Albertsons 1st, or do I have to have to start with a modest geography where by I’m pretty relaxed?”
She added, “Don’t be concerned about getting the large swings if you are not completely ready. If they want to give you 1,000 shops, talk to if you can check in a pair hundred and you can get your ft wet, you can get out there.”
Product or service assortment, packaging, positioning, pricing and advertising are pillars of a profitable omnichannel system. Understanding category critique and gross sales cycles also is essential. Significant retail chains that function on a category critique plan typically overview most groups when for each calendar year, she mentioned. New merchandise shows may possibly be accepted on a a lot more frequent foundation by scaled-down and independent retailers, she additional.
“Know your retailer ahead of you present to them,” Ms. Hogan mentioned. “Understand their tolerance for new things, understand their margin system, fully grasp their cost details. You never want to go in blind.”
Holly Adrien, pure and organic technique and innovation manager at The Kroger Co., in a separate presentation talked over the Cincinnati-centered grocery store company’s system for sourcing and onboarding emerging models at its grocery merchants, including Ralphs, Fred Meyer, Mariano’s, King Soopers and many others. She suggested partaking a broker with Kroger practical experience and connections.
“I assume there is homework to do in phrases of acquiring a spouse that may well know how to work with us … as nicely as wondering about the advertising options and how you would drive demo, and then how you link with consumers,” Ms. Adrien stated.
Leveraging on the net revenue details and client insights to guidance retail associations is vital.
“You can’t just sit on the shelf and be expecting to provide and keep there,” she additional.
U.S. stocks tumbled Thursday as Wall Avenue reeled from an additional sizable rate hike by Federal Reserve officers and assessed similar moves by financial policymakers throughout the Atlantic. A disappointing looking at on customer paying out also lifted fears about the overall health of the U.S. financial system.
The European Central Bank and the Bank of England adopted the U.S. Fed in raising fascination fees by 50 basis details Thursday morning. The BoE’s hike brought charges in the country to their greatest considering that 2008. Indications from just about every of the banks that even further tightening is underway offset optimism above peaking inflation.
The S&P 500 (^GSPC) slid 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while the Dow Jones Industrial Ordinary (^DJI) get rid of additional than 750 points, or 2.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, logging its worst working day in three months. The technologies-significant Nasdaq Composite (^IXIC) dropped 3.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
U.S. Treasury yields edged down, with the benchmark 10-year observe falling under 3.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The U.S. greenback index nudged increased, and oil selling prices slipped, with West Texes Intermediate (WTI) crude futures buying and selling all over $76 per barrel.
European Central Lender President Christine Lagarde echoed a hawkish tune from Fed Chair Jerome Powell following the monetary authority’s amount determination.
“Anybody who thinks that this is a pivot for the ECB is mistaken,” Lagarde reported in a information meeting. “We really should count on to raise fascination costs at a 50 basis-point speed for a interval of time.”
“We have far more floor to cover, we have longer to go and we are in for a prolonged video game,” she said.
In the meantime, the U.S. government’s retail profits report showed expending fell sharply in November as the critical vacation browsing year kicked off. The most recent retail gross sales looking through confirmed a decrease of .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the prior month but a 6.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase from the very same interval past 12 months.
“Black Friday and holiday shopping weren’t adequate to help you save retail gross sales previous month as they decreased the most this calendar year and came in properly below anticipations,” Morgan Stanley’s Head of Product Portfolio Development Mike Loewengart mentioned in a take note.
“The buyer has been resilient amid hot inflation and mounting fees, but superior charges and talks of a economic downturn might have some now next guessing achieving for their wallet,” he additional. “It is been a fast paced week for investors with both equally the Fed and ECB increasing costs, so it shouldn’t be a shock to see a shaky sector.”
Whilst a slowdown in retail paying confirmed sings of economic weak point, a different economic launch out early Thursday underscored ongoing tightness in the labor market. Filings for unemployment insurance fell unexpectedly last 7 days to the cheapest considering that September. Preliminary jobless statements, the most well timed snapshot of the U.S. employment scenario, arrived in at 211,000 for the week finished Dec. 10, a lower of 11,000 from the former week’s revised stage, for each Labor Office info.
On the company front, Tesla (TSLA) stock steadied Thursday right after declines all 7 days, even as a regulatory submitting confirmed CEO Elon Musk marketed close to 21,995,000 shares of the business, or around $3.6 billion value, through the three-day time period ending Dec. 14. Shares of Tesla are down about 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December so considerably and roughly 55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-to-day right after a sell-off of the electric powered-motor vehicle giant accelerated in latest days.
Shares of Lennar (LEN) also turned bigger after before losses adhering to earnings from the homebuilder late Wednesday that confirmed an 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} bounce in fourth-quarter financial gain. Lennar shut up 3.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
The moves Thursday morning adhere to declines across the big averages in the prior trading session right after the Fed delivered a 50-basis-stage increase to its benchmark curiosity rate. Powell also emphasised that he and colleagues will proceed to lift prices in 2023 to an upwardly revised projected terminal rate of 5.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Wednesday’s half-proportion place hike, which introduced the Fed resources amount to a variety of 4.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}-4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, did mark a slowdown from the 75-foundation-position increases at each individual of the Fed’s earlier 4 coverage meetings — the most intense stretch of hikes considering that the 1980s.
Despite a slowdown in the speed and magnitude of improves, Powell consistently asserted that the function by him and his colleagues to deal with stubbornly higher inflation was significantly from about.
Federal Reserve Board Chairman Jerome Powell holds a information meeting pursuing the announcement that the Federal Reserve lifted desire prices by half a proportion level, at the Federal Reserve Constructing in Washington, U.S., December 14, 2022. REUTERS/Evelyn Hockstein
“Now that we have raised fascination premiums 425 foundation factors this year and we’re into restrictive territory, it is now not so essential how quick we go — it is considerably extra important to feel, what is the greatest amount?” Powell mentioned in a press conference with reporters Wednesday. “At a particular issue, the dilemma will turn out to be, how very long do we continue being restrictive?”
The Fed’s “dot plot,” which displays estimates by policymakers for curiosity prices, showed expectations the federal money amount will raise in 2023 to concerning 5.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 5.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and in 2024 to continue to be at a median rate of 4.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from a earlier estimated 3.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} – a adjust strategists place out is the most significant shock revision to the central bank’s outlook.
“These estimates are notably much more hawkish than their previous forecasts and ended up not trailed perfectly in progress as is ordinarily the circumstance with the Fed,” William Blair macro analyst Richard de Chazal mentioned in a observe.
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Alexandra Semenova is a reporter for Yahoo Finance. Comply with her on Twitter @alexandraandnyc
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U.S. stocks sank on Wednesday after a series of disappointing quarterly results from some major retailers weighed on the broader markets. Investors also further digested remarks from Federal Reserve officials reaffirming their aims of reining in inflation.
[Click here to read what’s moving markets on Thursday, May 19]
The S&P 500 slid by 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in its worst day since June 2020, closing at 3,923.68. The Nasdaq Composite dropped 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to settle at 11,418.15, while the Dow fell by more than 1,100 points, or 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
The moves lower came as some weaker-than-expected earnings results from major retailers underscored the toll that inflation has been having on corporate profits. Target (TGT) on Wednesday cut its full-year operating income margin outlook as input and transportation costs remain elevated, and estimated it could see an additional $1 billion in transportation costs this year due to rising fuel prices. And this came after Walmart (WMT), the largest U.S. retailer, on Tuesday reported weaker-than-expected quarterly earnings and slashed its profit outlook for the year, citing higher wages, fuel and food costs. Shares of both companies sank, dragging peers including Costco (COST) and Dollar General (DG) lower in sympathy. The S&P Retail ETF (XRT) dropped more than 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and the S&P 500’s consumer staples and consumer discretionary sectors lagged.
“I think what investors realized was these seemingly safe haven stocks, the staples like Target, like Walmart, are not immune — that their costs are rising, they cannot pass their higher costs onto their consumers. And as Walmart said yesterday, their customers are coming in and buying groceries, but they’re not buying hard goods, they’re not buying other products where they have a slightly higher margin,” Jack Ablin, Cresset Capital chief investment officer, told Yahoo Finance Live Wednesday afternoon. “So if you look at the consumer and recognize yes wages are up, but they’re not going up at the same rate as inflation, and the highest cost increases are food and energy, that’s funneling away spending that ordinarily would be spent at a more profitable side of Walmart and a Target.”
The disappointing results outweighed optimism from earlier this week, when investors took in a number of upbeat reports on the U.S. economy. Tuesday’s at least short-lived rally came following a couple of solid reports that showed both consumer spending and manufacturing production were holding up strongly. U.S. retail sales grew at a 0.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate in April after a sharply upwardly revised 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly rise in March, suggesting consumers were continuing to spend even as consumer prices have climbed at the fastest rate since the 1980s. The latest print on U.S. industrial production also exceeded estimates with a jump of 1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last month, or more than double the expected rise.
The still-strong economic backdrop has given the Federal Reserve more room to raise interest rates and otherwise tighten monetary policy to bring down inflation without fear of deeply disrupting growth in other areas like the labor market.
Fed Chair Powell acknowledged to the Wall Street Journal on Tuesday that while “there could be some pain involved in restoring price stability,” he believed the Fed will be able to “sustain a strong labor market.” Powell also said that there remained “broad support” for two more 50 basis point interest rate hikes at the Fed’s next policy-setting meetings, reiterating his view from the Fed’s last meeting earlier this month.
“I don’t think he said anything that caught us off guard … but let’s not forget where we are,” Ryan Detrick, LPL Financial Chief Market Strategist, told Yahoo Finance Live on Tuesday, noting that the S&P 500 has fallen for six consecutive weeks heading into this week. “It hasn’t been down seven weeks in a row for 20 years, so we’re awfully oversold here. Then you come in today and you’ve got industrial production pretty solid, you’ve got retail sales pretty solid. Things aren’t perfect, but we just think so much of the negativity that is priced in … it’s just a little overboard for us, and we think this could very well be an opportunity for some of the longer-term investors here.”
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4:11 p.m. ET: Stocks plunge by most since June 2020: S&P 500 drops 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Dow sheds 1,165 points, or 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Here were the main moves in markets as of 4:11 p.m. ET:
S&P 500 (^GSPC): -165.17 (-4.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 3,923.68
Dow (^DJI): -1,164.52 (-3.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 31,490.07
Nasdaq (^IXIC): -566.37 (-4.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 11,418.15
Crude (CL=F): -$3.06 (-2.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $109.34 a barrel
Gold (GC=F): -$4.50 (-0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,814.40 per ounce
10-year Treasury (^TNX): -8.2 bps to yield 2.8860{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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12:31 p.m. ET: Walmart, Target results show inflation ‘is not going to abate anytime soon’: Analyst
Disappointing earnings results and outlooks from big box retailers Walmart and Target weighed on the broader retail sector on Wednesday, with both companies citing increased costs due to ongoing supply-side constraints. According to one analyst, the results show investors may have been too quick to call the peak in inflation.
“It has been a wild 48 hours in retail. I think one of the things that really stood out to us was just the common patterns. We’re seeing both companies signaling that their stores are seeing stronger traffic versus e-commerce. Both companies are seeing higher costs to execute their business,” Jefferies analyst Stephanie Wissink told Yahoo Finance on Wednesday. “Consumers are reshaping their behavior, so moving more toward essentials versus discretion.”
“I think the last thing is that this is not going to abate anytime soon,” she added. “I think there were a lot of conversations among investors that maybe inflation for the consumer has peaked, but these two companies are giving us very different signals that we’re still seeing costs rising faster than prices and more pricing is to come.”
Here were the main moves in markets as of 12:02 p.m. ET:
S&P 500 (^GSPC): -118.77 (-2.90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 3,970.08
Dow (^DJI): -799.82 (-2.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 31,854.77
Nasdaq (^IXIC): -404.77 (-3.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 11,579.75
Crude (CL=F): -$1.84 (-1.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $110.56 a barrel
Gold (GC=F): +$3.20 (+0.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,822.10 per ounce
10-year Treasury (^TNX): -4.2 bps to yield 2.9260{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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10:39 a.m. ET: Housing starts come in at slower-than-expected clip in April amid rising rates
U.S. housing starts and building permits each pulled back in April, with rising interest rates and raw material shortages continuing to weigh on housing market activity.
Housing starts fell 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} month-on-month in April to come in at a seasonally adjusted annualized rate of 1.724 million, the Commerce Department said Wednesday. This came following a downwardly revised 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop in March. Single-family housing starts, a closely watched measure of underlying homebuilding, fell by 7.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to come in at a rate of 1.1 million.
Building permits, which point to future homebuilding activity, dropped by a larger-than-expected 3.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in April to come in at a seasonally adjusted annualized rate of 1.819 million. In March, permits had grown by 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or at an annualized rate of 1.870 million.
“Starts and permits are likely to fall sharply over the next few months, tracking the downshift in new home sales, which in turn follows the ongoing rollover in mortgage applications,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a note Wednesday morning. “Demand likely has not yet hit bottomed, allowing for the usual lag between increases in rates and the response from potential homebuyers, so we think sales and starts could easily fall through the end of the summer. Construction has run above the pace implied by the mortgage numbers for the past year-and-a-half, as homebuilders have exploited the extreme shortage of inventory in the existing home market, but this cannot last much longer.”
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9:34 a.m. ET: Stocks open lower, giving back some of Tuesday’s gains
Here were the main moves in markets as of 9:34 a.m. ET:
S&P 500 (^GSPC): -47.92 (-1.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,040.93
Dow (^DJI): -313.94 (-0.96{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,340.65
Nasdaq (^IXIC): -167.82 (-1.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 11,816.70
Crude (CL=F): +$1.42 (+1.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $113.82 a barrel
Gold (GC=F): -$8.10 (-0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,810.80 per ounce
10-year Treasury (^TNX): +1.4 bps to yield 2.9820{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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7:42 a.m. ET: Stock futures drop
Here’s where markets were trading Wednesday morning:
S&P 500 futures (ES=F): -30.25 points (-0.74{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,054.50
Dow futures (YM=F): -187 points (-0.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,394.00
Nasdaq futures (NQ=F): -130.74 points (-1.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,429.50
Crude (CL=F): +$1.32 (+1.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $113.72 a barrel
Gold (GC=F): -$5.70 (-0.31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,813.90 per ounce
10-year Treasury (^TNX): +2.7 bps to yield 2.997{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
7:38 a.m. ET: Lowe’s first-quarter revenue disappoints as cooler temperatures weighed on home improvement sales
Lowe’s (LOW), the country’s second-largest home improvement giant, posted top-line results that came in short of Wall Street’s expectations as cooler-than-average temperatures early this spring weighed on some demand. Shares fell 2.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in pre-market trading.
Comparable sales fell 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the first quarter, Lowe’s said, with the drop coming in steeper than the 3.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} decrease expected, according to Bloomberg data. Closely watched U.S. comparable sales alone decreased by 3.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. However, on the bottom-line, earnings per share of $3.51 exceeded expectations.
“Our sales this quarter were in line with our expectations, excluding our outdoor seasonal categories that were impacted by unseasonably cold temperatures in April,” Lowe’s CEO Marvin Ellison said in a press statement. “Because 75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of our customer base is DIY, our Q1 sales were disproportionately impacted by the cooler spring temperatures. Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May.”
Lowe’s reiterated its full-year forecast for earnings per share to come in between $13.10 and $13.60. Comparable sales will be in a range of down 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to up 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Lowe’s added.
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7:32 a.m. ET: Mortgage applications fell by the most since February last week
U.S. mortgage applications slid by the most since mid-February last week as mortgage rates jumped to their highest level since 2009, deterring some refinancers and buyers from the market.
The Mortgage Bankers Association’s weekly index tracking mortgage loan application volume slid 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} week-on-week during the period ended May 13, according to the firm’s latest report. Refinances dropped by 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the previous week and cratered by 76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to the same week last year. Purchases, on a seasonally unadjusted basis, were down by 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the prior week and by 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the comparable week in 2021.
“For borrowers looking to refinance, the current level of rates continues to be a significant disincentive,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a press statement. “Purchase applications fell 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last week, as prospective homebuyers have been put off by higher rates and worsening affordability conditions. Furthermore, general uncertainty about the near-term economic outlook, as well as recent stock market volatility, may be causing some households to delay their home search.”
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7:22 a.m. ET Wednesday: Target shares slide after company cuts full-year profit guidance on higher costs
Target posted first-quarter earnings and full-year profit guidance that disappointed Wall Street, with higher costs expecting to keep cut into the margins for the big-box retailer. Shares fell more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in pre-market trading.
Target’s adjusted earnings came out to $2.19 per share for the first quarter, coming in below estimates for $3.06 apiece, according to Bloomberg data. However, like peer retail giant Walmart, sales for the quarter still exceeded estimates, with comparable same-store sales up 3.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} versus the 1.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise expected.
For the full year, Target now expects its full-year operating income margin rate to be “in a range centered around 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a},” the company said in its earnings statement. That compares to a prior view of an at least 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} operating income margin rate this year.
“Throughout the quarter, we faced unexpectedly high costs, driven by a number of factors, resulting in profitability that came in well below our expectations, and well below where we expect to operate over time,” Target CEO Brian Cornell said in a press statement. “Despite these near-term challenges, our team remains passionately dedicated to our guests and serving their needs, giving us continued confidence in our long-term financial algorithm, which anticipates mid-single digit revenue growth, and an operating margin rate of 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} or higher over time.”
—
6:10 p.m. ET Tuesday: Stock futures resume declines
Here’s where markets were trading Tuesday evening:
S&P 500 futures (ES=F): +9.5 points (+0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,094.25
Dow futures (YM=F): +67 points (+0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,648.00
Nasdaq futures (NQ=F): +27 points (+0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,587.25
NEW YORK, NEW YORK – MAY 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trading as investors continue to worry about inflation and other global issues. (Photo by Spencer Platt/Getty Images)
Stocks ended mixed on Friday at the end of a volatile week, with investors monitoring a mixed set of bank earnings and a bigger-than-expected drop in U.S. retail sales.
The S&P 500 and Nasdaq closed at the highs of the trading day. The Nasdaq fluctuated between gains and losses after a 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop on Thursday, but closed up 0.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at 14,893.75.
The Dow underperformed, dropping more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at session lows as the index’s bank stock components declined after delivering earnings. The index closed down 0.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at 35,911.81. JPMorgan Chase (JPM) shares fell 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after the company posted lower-than-expected fourth-quarter trading revenues and rising costs as compensation expenses increased. Citigroup (C) shares also fell after posting a similar miss on fixed-income and equities trading revenues for the quarter.
Peer bank Wells Fargo (WFC) shares rose, on the other hand, after posting quarterly revenue that topped estimates as both commercial and consumer loans picked up at the end of last year.
New economic data came in weaker-than-expected on Friday, adding to the risk-off tone in markets. U.S. retail sales fell 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December month-on-month, missing estimates for an only 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} dip and marking the biggest drop since February 2021. November’s sales were also downwardly revised to show 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly increase, compared to the 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise previously reported.
Investors this week have been weighing concerning signs of lingering price pressures across the U.S. economy against assertions from key central bank officials that the Federal Reserve is ready to take action to bring down inflation.
In Fed Governor Lael Brainard’s hearing before the Senate Banking Committee on Thursday, she suggested the central bank could begin raising interest rates — a move that would tighten financial conditions and help bring down inflation — “as soon as asset purchases are terminated.” The Federal Reserve is currently set to end its asset-purchase tapering process in March.
JPMorgan Chase CEO Jamie Dimon said during this morning’s earnings call that he expected that on interest rate hikes this year, “there’s a pretty good chance there will be more than four — there could be six or seven.”
“What we’re seeing right now is a repricing of the markets, given anticipated rate hikes… That’s going to be the catalyst driving down the market,” WealthWise Financial CEO Loreen Gilbert told Yahoo Finance Live on Thursday. “It’s going to be a wild ride.”
And the bevy of recent inflation data has so far helped strengthen the case for a near-term move on monetary policy, many economists suggested. Thursday’s Producer Price Index (PPI) showed the biggest annual rise in wholesale prices on record, in data going back to 2010, even as monthly price gains moderated slightly. And this report came just a day following the December Consumer Price Index (CPI) showing the biggest surge in inflation since 1982. Many economists suggested inflationary pressures would continue at least through the first months of this year before gradually easing.
“Two of the biggest things have been the supply chain disruptions and the fiscal stimulus,” Matthew Miskin, John Hancock Investment Management co-chief investment strategist, told Yahoo Finance Live. “As the pandemic comes more under control this year, as the Omicron wave hopefully dissipates, we likely see the supply chain disruptions come off, and then we’re not going to get more fiscal stimulus … That in our view does cause inflation to come down over the course of the year.”
Rising prices have also been hitting companies’ profits as labor costs jump. Of the nearly two dozen S&P 500 companies that had reported fourth-quarter earnings results as of mid-week, 60{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of these cited a negative impact from higher labor costs or shortages to sales or profits, according to FactSet.
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4:02 p.m. ET: S&P 500 and Nasdaq close at highs of day
Here were the main moves in markets as of 4:02 p.m. ET:
S&P 500 (^GSPC): 3.79 (0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4662.82
Dow (^DJI): -202.34 (-0.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,911.28
Nasdaq (^IXIC): 86.94 (0.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,893.75
Crude (CL=F): -$2.16 (2.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.28 a barrel
Gold (GC=F): -$4.90 (-0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,816.50 per ounce
10-year Treasury (^TNX): +8 bps to yield 1.789{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
11:35 a.m. ET: Biden administration names three nominees to fill spots on Fed Board of Governors
The Biden administration announced its nominees to fill out the Federal Reserve Board of Governors, tapping Sarah Bloom Raskin, Lisa Cook, and Philip Jefferson for the roles. Each nominee must still go before the Senate Banking Committee for confirmation.
Earlier this week, Federal Reserve Chair Jerome Powell appeared before the Senate Banking Committee in his renomination hearing to remain as Fed Chair for second term. Current Fed Governor Lael Brainard also had her nomination hearing to become Fed Vice Chair.
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10:15 a.m. ET: Manufacturing production unexpectedly falls in December
The U.S. manufacturing sector showed more signs of slipping amid the latest surge in COVID-19 cases and materials shortages.
According to new Federal Reserve data Friday, manufacturing output declined by 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December to reverse course after a 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise in November. Consensus economists were looking for a 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly rise in production in December, based on Bloomberg data. Manufacturing accounts for about 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of overall economic activity in the U.S.
A drop in auto production contributed heavily to the headline decline, with ongoing chip shortages impacting the industry. Vehicle production was down 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December following a rise of 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November.
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10:11 a.m. ET: University of Michigan sentiment index drops to 68.8 in January, in second-lowest reading in a decade
Consumer sentiment fell more than expected in early January to reach one of its lowest readings in 10 years, as concerns over the inflation outlook and COVID-19 weighed on optimism.
“While the Delta and Omicron variants certainly contributed to this downward shift, the decline was also due to an escalating inflation rate,” Richard Curtin, chief economist for the Surveys of Consumers, wrote in a statement. “Three-quarters of consumers in early January ranked inflation, compared with unemployment, as the more serious problem facing the nation.”
“Given that inflation’s impact is regressive, the Sentiment Index fell by 9.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} among households with total incomes below $100,000 in early January, but rose by 5.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} among households with incomes over that amount,” he added.
Overall, consumers’ one-year inflation expectations edged back up to 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or the highest level since 2008, from December’s 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
—
9:30 a.m. ET: Stocks open lower after disappointing economic data, mixed bank earnings
Here’s where markets were trading just after the opening bell Friday morning:
S&P 500 (^GSPC): -28.25 (-0.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,630.78
Dow (^DJI): -337.64 (-0.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,775.98
Nasdaq (^IXIC): -51.93 (-0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,756.56
Crude (CL=F): +$0.56 (+0.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $82.68 a barrel
Gold (GC=F): +$3.90 (+0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,825.30 per ounce
10-year Treasury (^TNX): +2.5 bps to yield 1.734{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
8:32 a.m. ET: Retail sales drop 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December, missing estimates
Retail sales posted a large-than-expected drop in December, as consumer spending pulled back from earlier in 2021.
The total value of U.S. retail sales was down 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December compared to November, the Commerce Department said Friday. This was the first monthly drop since July, and the biggest decline since February 2021. Consensus economists had looked for a dip of just 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to Bloomberg data. In November, retail sales rose 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with this figure also downwardly revised. from the 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise previously. reported.
By category, non-store retailers, or e-commerce stores, saw by far the biggest drop in monthly retail sales, with these falling 8.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December. Department stores also posted a 7.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop in sales, and furniture and home furnishing sales declined by 5.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Still, the weakness was broad-based in December, and nearly every category of retailer saw a monthly drop in sales. Notably, building material stores saw a nearly 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} sales rise during the month, and miscellaneous store retailers’ sales rose by 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
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7:43 a.m. ET: ‘The economy continues to do quite well despite headwinds related to the Omicron variant’: Dimon
JPMorgan Chase CEO Jamie Dimon struck an upbeat tone about the trajectory of the economic recovery even given the latest disruptions caused by the rapidly spreading Omicron variant.
“The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks,” Dimon said in the bank’s fourth-quarter earnings report on Friday. “Credit continues to be healthy with exceptionally low net charge-offs, and we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth.”
Both JPMorgan Chase and Wells Fargo cited an increase in loans as contributing to results at the end of last year, suggesting consumers and businesses were remaining confident in borrowing and spending.
However, JPMorgan’s fixed-income and stock-trading businesses saw sales fall over last year. Fixed income sales and trading revenue declined 16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year to $3.33 billion, which the bank attributed to “a challenging trading environment in rates, as well as lower revenues in credit and currencies & emerging markets compared to a strong prior year.” Equities sales and trading revenue dipped 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $1.95 billion.
Overall, adjusted revenue grew 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year to reach $30.35 billion, topping estimates for $30.01 billion, according to Bloomberg data. Earnings per share were $3.33, exceeding expectations for $2.99.
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7:32 a.m. ET Friday: Stock futures give up earlier gains, point to a lower open
Here’s where markets were trading before the opening bell:
S&P 500 futures (ES=F): -5 points (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,647.00
Dow futures (YM=F): -37 points (-0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,952.00
Nasdaq futures (NQ=F): -30.75 points (-0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,459.50
Crude (CL=F): +$0.58 (+0.71{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $82.70 a barrel
Gold (GC=F): +$0.90 (+0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,822.30 per ounce
10-year Treasury (^TNX): +3.3 bps to yield 1.742{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
6:01 p.m. ET Thursday: Stock futures open slightly higher
Here’s where markets were trading Thursday evening:
S&P 500 futures (ES=F): +4.25 points (+0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,656.25
Dow futures (YM=F): +37 points (+0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,026.00
Nasdaq futures (NQ=F): +18.75 points (+0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,509.00
NEW YORK, NEW YORK – JANUARY 11: Traders work on the floor of the New York Stock Exchange (NYSE) on January 11, 2022 in New York City. After yesterdays sell off, the Dow was down only slightly in morning trading. (Photo by Spencer Platt/Getty Images)
Stocks gained on Tuesday, with traders digesting key new economic data on the state of the consumer after a couple of major retailers topped quarterly earnings results.
New monthly retail sales data from the Commerce Department showed better-than-expected consumer spending trends heading into the holiday season. The total value of U.S. retail sales rose by 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October compared to September, topping expectations for a 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise, according to Bloomberg consensus data. The print was closely watched as an indicator of overall economic strength, given consumption comprises about two-thirds of U.S. economic activity.
Earnings results from retail juggernaut Walmart (WMT) further underscored solid shopping trends among American consumers. The company’s closely watched U.S. comparable same-store sales grew 9.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year in the third quarter, and by 15.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to the same period in 2019, to exceed estimates for growth of 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to Bloomberg consensus data. E-commerce sales also held up and grew by a better-than-expected 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, compared to the 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise expected, even as more consumers returned to in-person shopping.
Home Depot (HD), meanwhile, also posted better-than-expected sales and earnings results as the company continued to see “elevated home improvement demand,” CEO Craig Menear said in Home Depot’s earnings statement. Comparable sales grew 6.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to the 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise anticipated.
These reports came at the tail end of what has already been an exceptionally strong earnings season. As of Friday, 92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of S&P 500 companies had reported actual results, and of these, 81{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of them had reported better-than-expected earnings results, according to FactSet.
The slew of better-than-expected corporate profits, coupled with still-accommodative monetary policy support, have helped power stocks to record highs throughout the year, and pushed the S&P 500 up by nearly 25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} so far in 2021. These factors have also helped investors continue to push through concerns over persistently elevated inflation — though the stickiness of these rising prices remains a closely watched risk for investors.
“We have a stock market that’s been on an absolute tear despite high inflation,” Michael Darda, MKM Partners chief economist, told Yahoo Finance Live. “That’s not aways been the case historically but it has this time around, and I think for a set of very specific reasons.”
“One is that market interest rates are still extremely low on a historical basis, even though they’re up year-to-date from where they were in January,” he said. “Liquidity levels are high and companies have a lot of pricing power, so profits have been very strong despite those high inflation readings. That doesn’t necessarily mean the market is going to continue to soar on a go-forward basis. I think it’s really going to come down to the future path of market interest rates and how the Fed maneuvers moving forward, because they will be moving into a tightening cycle probably before many forecasters assumed that they would.”
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4:06 p.m. ET: Stocks end higher after retail sales, earnings top estimates: Nasdaq outperforms to gain 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Here were the main moves in markets as of 4:06 p.m. ET:
S&P 500 (^GSPC): +18.10 (+0.39{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,700.90
Dow (^DJI): +54.77 (+0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,142.22
Nasdaq (^IXIC): +120.01 (+0.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,973.86
Crude (CL=F): -$0.10 (-0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $80.78 a barrel
Gold (GC=F): -$15.40 (-0.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,851.20 per ounce
10-year Treasury (^TNX): +1.1 bps to yield 1.6340{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
12:39 p.m. ET: Rivian shares rally for a fifth straight day after IPO
Rivian’s stock was on track to post a fifth straight day of gains after its upsized initial public offering last week, with investor appetite for the Amazon-backed electric-vehicle startup showing no signs of slowing down.
Shares traded for as much as $169.70 apiece Tuesday afternoon, or nearly 120{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} above their IPO price of $78. This also sent the company’s market capitalization above that of established automaker Volkswagen, the largest car-maker in Europe.
According to Bloomberg data, the extended rally gave Rivian the title of this year’s best performer in the week following an IPO of at least $1 billion. The title was previously held by financial technology company Affirm Holdings, which advanced by 117{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in its first five sessions.
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10:15 a.m. ET: U.S. manufacturing production reached highest level since March 2019 despite supply chain disruptions
U.S. manufacturing production surged by 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to reach its highest level since early 2019 in October as the goods-producing sector rebounded from impacts related to Hurricane Ida in late summer.
The increase, which was posted in a monthly report from the Federal Reserve, was biggest than the 0.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise expected, and marked a recovery from September’s 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop in manufacturing production.
Industrial production, a broader measure that includes output at mine sand utilities, was also up by a greater than expected 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October, or nearly double the 0.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise anticipated for the month.
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9:30 a.m. ET: Stocks open mixed
Here’s where markets were trading shortly after the opening bell:
S&P 500 (^GSPC): +0.17 points (+0.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,682.97
Dow (^DJI): +62.20 (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,149.65
Nasdaq (^IXIC): -23.9 (-0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,829.95
Crude (CL=F): -$0.21 (-0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $80.67 a barrel
Gold (GC=F): -$3.80 (-0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,862.80 per ounce
10-year Treasury (^TNX): +0.6 bps to yield 1.627{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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9:20 a.m. ET: Import prices jump in October, adding to inflationary signals
Import prices rose by a greater-than-expected margin in October compared to September, suggesting inflationary pressures were still rippling through the economy.
The Commerce Department reported Tuesday that import prices rose 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on a monthly basis in October, coming in well above the 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise for September. This was also above the 1.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase consensus economists expected for October, according to Bloomberg data.
Energy prices were a major contributor to the headline number, with petroleum costs rising by 8.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the month. Excluding petroleum, however, the index of import prices still rose 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the month, or more than double September’s 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase.
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8:39 a.m. ET: Retail sales exceed estimates, rising by 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} estimate
U.S. retail sales exceeded expectations in October and rose for a third straight month, showing the U.S. consumer was already spending at a strong clip heading into the holiday shopping season.
The Commerce Department said Tuesday that retail sales grew by 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} month-on-month in October, topping estimates for 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to Bloomberg consensus data. In September, retail sales had risen by 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with this figure upwardly revised from the 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} uptick previously reported.
So-called “non-store retailers” posted the largest percent increase in sales in October. This category, which captures e-commerce sales, saw a 4.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly rise in sales. This was followed by gasoline station sales with a rise of 3.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and electronics and appliance stores with a gain of 3.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Some of the categories associated with the reopening saw sales momentum slow, however. Food service and drinking places sales were flat during the month, and clothing and clothing accessory store sales turned negative to drop by 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
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7:25 a.m. ET Tuesday: Stock futures rise ahead of retail sales, and as Walmart and Home Depot top estimates
Here’s where markets were trading ahead of the opening bell:
S&P 500 futures (ES=F): +3 points (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,682.00
Dow futures (YM=F): +64 points (+0.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,073.00
Nasdaq futures (NQ=F): +9.5 points (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,197.25
Crude (CL=F): +$0.39 (+0.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $81.27 a barrel
Gold (GC=F): +$8.50 (+0.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,875.10 per ounce
10-year Treasury (^TNX): -0.1 bps to yield 1.611{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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6:15 p.m. ET Monday: Stock futures edge higher as the overnight session kicks off
Here’s where markets were trading Monday evening:
S&P 500 futures (ES=F): +1.75 points (+0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,680.75
Dow futures (YM=F): +16 points (+0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,025.00
Nasdaq futures (NQ=F): +6.5 points (+0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,194.25
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 12, 2021. REUTERS/Brendan McDermid
