-

Wall Street falls, dragged by retail and tech stocks

U.S.A.Wall Street falls, dragged by retail and tech stocks

File image of a Wall Street sign in New York, USA. February 16, 2021. Reuters / Brendan McDermid

By Amber Warik and Devik Jain

Nov 24 (Reuters) – Wall Street indexes fell on Wednesday as data pointed to the strength of the US economy, highlighting inflationary pressures, while disappointing earnings from retailers also hurt investor sentiment.

* Shares of department store operator Nordstrom Inc. and clothing retailer Gap Inc. fell 29.3% and 23.2%, respectively, after both companies warned of supply chain problems and increased costs during the crucial holiday season.

* The broader retail index was down 0.4% as results set a gloomy tone for the industry ahead of the Thanksgiving weekend, which kicks off the US holiday season.

“The problem is, expectations are high for a very strong and solid holiday shopping season for retailers. Anything less will be disappointing,” said Ken Mahoney, CEO of Mahoney Asset Management.

* Tech stocks were the biggest hurdle for the S&P 500 and Nasdaq, adding to losses this week after the nomination of Jerome Powell as Federal Reserve chairman bets to sharply tighten United States monetary policy.

* Tech stocks are sensitive to rising interest rates, as their value is highly dependent on future earnings, which fall further as rates rise.

READ MORE  AMLO celebrates appointment of Ortiz Ahlf as minister of SCJN: "We have to seek the best"

* The S&P technology sector and the communications services sector each fell 0.4%.

* Data showed US consumer spending rose more than expected in October, as households bought motor vehicles and many other items, although price pressure intensified.

* The so-called core PCE price index, the Fed’s preferred measure of inflation, rose 4.1% in 12 months to October after a 3.7% advance in September.

* Other data showed weekly claims for unemployment benefits declined and third quarter GDP was revised upwards.

* The focus is also on the minutes of the Fed’s meeting on November 2-3, scheduled for later in the day, the pace at which the central bank intends to ease the COVID-era stimulus measures. Is. Fed officials agreed at the meeting to reduce monthly asset purchases.

* The Dow Jones Industrial Average was down 105.30 points, or 0.29%, at 35,708.50 in close afternoon trading, and the S&P 500 was down 11.77 points, or 0.25%, at 4,678., 93 units. The Nasdaq Composite was down 49.83 points, or 0.32%, at 15,725.31.

(Reporting by Devik Jain in Bengaluru; Editing in Spanish by Rodrigo Charme)

Latest news

You might also likeRELATED
Recommended to you