Wall Street closes lower as investors digest economic data

Wall Street closes lower as investors digest economic data
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  • US producer prices increase in November
  • Consumer sentiment improves in December
  • Lululemon falls after a pessimistic forecast
  • Indices close: S&P 500 -0.73%, Nasdaq -0.70%, Dow -0.90%

Dec 9 (Reuters) – Wall Street closed lower on Friday as investors assessed economic data and expected a possible 50 basis point interest rate hike from the US Federal Reserve at its monetary policy meeting next week, while clothing company Lululemon slumped after a disappointing earnings forecast. . .

US producer prices rose slightly more than expected in November amid rising utility costs, but the trend is moderating, with annual factory-gate inflation posting its rise smallest in 1-1/2 years, data He showed.

“Today’s data shows inflation is coming down, but it’s persisting and more sticky than most assume,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. However, in December, consumer sentiment improved as inflation expectations fell to a 15-month low, a University of Michigan survey showed.

Futures trading suggests a 77% chance the Fed will raise interest rates by 50 basis points next week, with a 23% chance of a 75 basis point hike, and those odds changed shortly after the data. cheap friday

November consumer price data, due to be released on Tuesday, will provide further clues about the central bank’s monetary tightening plans.

Lululemon Athletica Inc (LULU.O) fell nearly 13% after the Canadian sportswear maker forecast income and earnings for the festive quarter lower than expected.

netflix inc (NFLX.O) gained 3.1% after Wells Fargo upgraded the streaming video giant to “overweight” from “equal weight.”

The S&P 500 fell 0.73% to close the session at 3,934.38 points.

The Nasdaq fell 0.70% to 11,004.62 points, while the Dow Jones Industrial Average fell 0.90% to 33,476.46 points.

Of 11 S&P 500 sector indices, 10 fell, led lower by energy (.SPNY)2.33% less, followed by a 1.28% loss in healthcare (.SPXHC).

The energy index posted a seventh straight session of losses, its longest losing streak since December 2018, as oil prices appeared headed for weekly losses on recession concerns.

Wall Street’s main indexes have fallen this week after posting two consecutive weekly gains. Investors weigh heavily on fears of a potential recession next year due to the central bank’s extended rate hikes.

For the week, the S&P 500 fell 3.4%, the Dow lost 2.8% and the Nasdaq lost 4%.

US stocks ended a recent losing streak on Thursday after data displayed Initial jobless claims increased modestly last week.

Broadcom Inc. (AVGO.O) jumped 2.6% after chipmaker forecast Current quarter revenue above Wall Street estimates.

Boeing Co rose 0.3% after Reuters report The aircraft manufacturer plans to announce an agreement with United Airlines (UAL.O) for 787 Dreamliner orders next week.

Declining stocks outnumbered rising ones within the S&P 500 (.AD.SPX) in a ratio of 3.3 to one.

The S&P 500 posted 5 new highs and 1 new low; the Nasdaq posted 54 new highs and 213 new lows.

Volume on US exchanges was relatively low, with 9.9 billion shares traded, compared to an average of 10.9 billion shares over the previous 20 sessions.

Reporting by Sruthi Shankar, Ankika Biswas and Johann M Cherian in Bengaluru, and Noel Randewich in Oakland, California; Edited by Vinay Dwivedi, Sriraj Kalluvila, Shounak Dasgupta, and Aurora Ellis

Our standards: The Thomson Reuters Trust Principles.

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