Stocks waver as retail earnings loom

US stocks rallied on Monday but ended the day lower as Wall Street awaited another round of earnings and key data from the retail sector.

LS&P 500 (^GSPC) sank 0.9% on the day, while the Dow Jones Industrial Average (^DJI) fell 0.6%, or more than 200 points. The tech-heavy Nasdaq Composite (^IXIC) fell 1.1%.

Stocks ended last week with their biggest gains in months, with lighter inflation data fueling hopes among investors that a change in monetary policy is near. LS&P 500 rose nearly 6%, while the Nasdaq added about 8% for the week.

Treasury yields advanced on Monday, and the dollar held steady after comments over the weekend by Federal Reserve Governor Christopher Waller, who said the central bank still had “a ways to go” with -increases in interest rates.

“This is not going to end in the next meeting or two,” he said.

The comments echoed hawkish remarks this month from Fed Chairman Jerome Powell and reinforcement from other colleagues who also reaffirmed that rate hikes were far from over.

Some individual stocks that were performing on Yahoo Finance on Monday:

  • Tyson Foods (TSN): The beef and poultry producer reported quarterly earnings that beat expectations, while sales rose above forecasts as the high inflation environment weighed on margins.

  • Oatly Group AB (OTLY): The Swedish maker of oat-based dairy products posted a bigger-than-expected third-quarter loss and revenue that fell short of estimates.

  • AMC Entertainment Holdings, Inc. (AMC): AMC CEO Adam Aron told Yahoo Finance Live on Thursday that the company will still accept cryptocurrencies, despite the FTX collapse. The stock is down more than 72% this year.

  • SNDL Inc. (SNDL): the The liquor and cannabis retailer posted a loss in the third quarter, compared to a profit in the year-ago quarter.

  • Amazon (AMZN): Amazon is planning to lay off around 10,000 employees in what would be the biggest downsizing in the company’s history, according to reports. The mass layoffs could begin as soon as this week and will focus on Amazon’s devices organization, retail division, and human resources department. The move also follows Facebook parent Meta ( META ), Twitter, and other tech companies laying off thousands of employees this month. Amazon stock fell more than 2% on Monday.

  • Hasbro (SHE HAS IT): Shares of Hasbro fell after analysts at Bank of America downgraded the stock from buy to underperform. The concern cited that the company was “destroying the long-term value” of its “Magic: The Gathering” card game.

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Walmart ( WMT ), Target ( TGT ), and The Home Depot ( HD ) are among the major companies set to reveal third-quarter financials this week.

Data from FactSet Research shows as of Friday, 91% of companies in the S&P 500 reported third-quarter earnings, with 69% reporting actual earnings per share above the average estimate – below the five-year average years of 77% that beat.

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Also on Wall Street’s plate is another round of economic data, including the monthly retail sales report out Wednesday. Economists polled by Bloomberg forecast a headline increase of 1% for October after spending unexpectedly took off in September as consumers pulled back on big-ticket items amid high inflation and rising interest rates. .

Wall Street strategists have also started releasing their outlooks for 2023, with Morgan Stanley’s chief US equity strategist Mike Wilson seeing more rough patches ahead.

“While its year-end 2023 base case price target of 3,900 is roughly in line with where the market is currently trading, it won’t be a smooth ride,” strategists headed from Wilson wrote in the bank “2023 US Equities Outlook: The Road Not Taken” note. “After what is left of this current tactical rally, [Wilson] sees the S&P 500 risking ’23 earnings sometime in Q123 through a ~3,000-3,300 price trough.”

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Elsewhere, President Joe Biden met with Chinese leader Xi Jinping on Monday as the United States seeks a stronger alliance with nations that could help deter China from taking military action against Taiwan.

Meanwhile, the world of cryptocurrencies continued to see a rapid sequence of events. The collapse of FTX International threatened losses for both large and small investors, with FTX filing for bankruptcy on Friday in a stunning fall for a crypto empire. The fallout continued over the weekend. FTX tried a potential hack and asked customers to stay off the website, while crypto exchange Crypto.com sent $405 million to the wrong recipient. Bitcoin fell 0.7% to $16,246.64 by the end of US trading on Monday amid FTX’s deepening woes.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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