Wall Street ends lower as investors digest economic data

  • US producer prices rose in November
  • Consumer sentiment improves in December
  • Lululemon falls after downbeat estimates
  • Indexes closed: S&P 500 -0.73%, Nasdaq -0.70%, Dow -0.90%

December 9 (Reuters) – Wall Street closed on Friday as investors weighed economic data and awaited a 50-basis rate hike by the U.S. Federal Reserve at a policy meeting next week, while clothing company Lululemon declined after a disappointing profit forecast. . .

US producer prices rose slightly more than expected in November amid a jump in service costs, but the trend moderated, with annual factory-gate inflation posting its smallest increase in 1-1/2 years, the data showed.

“Today’s data shows that inflation is slowing, but it’s staying and sticking more than most people think,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. However, in December, consumer sentiment improved, while inflation expectations fell to a 15-month low, a survey by the University of Michigan showed.

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Futures trades suggest a 77% chance the Fed will raise interest rates by 50 points next week, and a 23% chance of a 75-basis point increase, with those chances changing after Friday’s economic data.

November consumer price data, due Tuesday, will provide new clues to the central bank’s monetary tightening plans.

Lululemon Athletica Inc ( LULU.O ) fell nearly 13% after the Canadian sportswear maker forecast lower-than-expected holiday quarter revenue and profit.

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

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

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

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In the signs of the 11 S & P 500 sectors, 10 are rare, led by less energy (.SPNY), down 2.33%, followed by 1.28% loss of health (.SPXHC).

The energy index recorded its seventh straight session of losses, its longest loss since December 2018, as oil prices looked for a weekly loss on the back of a recession.

Wall Street’s main indexes fell this week after logging two straight weekly gains. A heavy burden for investors is the fear of a possible recession next year due to the central bank’s rate hikes.

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

US stocks pared recent losses on Thursday after data showed initial jobless claims rose modestly last week.

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Broadcom Inc ( AVGO.O ) jumped 2.6% after the chipmaker reported fourth-quarter revenue that topped Wall Street estimates.

Boeing Co rose 0.3% after Reuters reported the plane maker plans to announce a deal with United Airlines ( UAL.O ) on 787 Dreamliner orders next week.

Declining stocks outpaced rising S&P 500 (.AD.SPX) by a 3.3-to-one ratio.

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

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

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

Our standards: The Thomson Reuters Trust Principles.

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