Stocks fell at the open on Tuesday, after retail sales data beat expectations and earnings season picked up steam.
The Dow Jones Industrial Average (^DJI) fell about 0.4%, or roughly 130 points, after ending Monday with gains. Contracts on the S&P 500 (^GSPC) and the tech-heavy Nasdaq 100 (^NDX) were down about 0.8% and 1.1%, respectively.
Retail sales rose 0.7% in September from the previous month, more than doubling The latest data released Tuesday showed Wall Street estimated growth of 0.3%. The surprising reading reflects the continued resilience of the US consumer despite expectations of a slowdown.
In earnings, Bank of America (BAC) reported a 10% increase in earnings, echoing the strong showing of its peers last week. Goldman Sachs (GS) is one of the highlights of its third-quarter reports on Tuesday Lockheed Martin (LMT), Johnson & Johnson (JNJ), and United Airlines (UAL) are also on the agenda.
Earnings season is still in its early days, but there are already encouraging signs that corporate America may be seeing an end to the recent earnings slump. Tesla (TSLA) and Netflix (NFLX) topped the technology sector results on Wednesday, providing further insight into losses from rising borrowing costs.
Read more: What a pause in federal interest rate hikes means for bank accounts, CDs, loans and credit cards
Meanwhile, the conflict in the Middle East continues to weigh on the market as investors assess the chances of it turning into a broader war. the – Escalating geopolitical tensions in the Middle East Major investors have warned that this could lead to a global recession.
News that President Joe Biden plans to visit Israel on Wednesday and then travel to Jordan has allayed some fears stemming from Israel’s impending ground assault on Gaza, which is seen as a red line for its Arab neighbors.
Oil prices stabilized as the United States intensified its diplomatic efforts and as hopes rose that the United States would ease sanctions on producer Venezuela. Crude oil futures (CL=F) settled above $86 per barrel, while Brent crude futures (BZ=F) traded at around $90 per barrel.
No consumer slowdown was found in September
American consumers continue to surprise Wall Street.
New data from the Commerce Department released Monday showed that retail sales rose 0.7% in September from the previous month, more than double Wall Street’s estimate of 0.3% growth. Sales excluding autos and gas rose 0.6%, higher than estimates for a 0.1% increase compiled by Bloomberg. Meanwhile, August sales were revised to 0.8% from the previously reported increase of 0.6%.
September reportIt offers a snapshot of consumer spending at a time when economic data came in largely stronger than expected despite the Federal Reserve’s interest rate hike as the central bank seeks to cool inflation.
Nine of the 13 categories highlighted in the release saw increases compared to last month, while sporting goods was the only category unchanged since August. Sales at miscellaneous retailers led all categories, rising 3% compared to August. Sales at non-store retailers rose 1.1%, while sales at auto and parts dealers were the other leaders, up 1% from September.
The biggest laggards were electronics and appliance stores, as well as clothing sales, which fell by 0.8% compared to the previous month.
Read more here.
BofA, Lockheed, Wyndham: Stocks trend in pre-market trading
Here are some of the stocks topping Yahoo Finance’s trending trends page in pre-market trading on Tuesday:
Bank of America Corporation (BAC): Bank of America stock rose more than 1% pre-market. The second-largest U.S. bank saw its profits rise 10% after getting a boost from higher interest income and a strong performance from its Wall Street unit, according to Yahoo Finance’s David Hollerith.
Lockheed Martin (LMT): Shares fell more than 1% Tuesday in premarket trading. The group reported higher third-quarter revenue on Tuesday as geopolitical tensions fueled demand for its military equipment.
Wyndham (WH): Wyndham shares rose 12%. Choice Hotels said Tuesday it has offered to buy Wyndham Hotels in a potential deal worth nearly $10 billion.
Erickson (Eric): Shares fell more than 4% after the company reported downbeat earnings and said it expects uncertainty affecting its mobile network business to continue through 2024.
Stock futures decline as earnings season accelerates
Wall Street’s major stock indexes pointed lower on Tuesday, as reports from Bank of America and Johnson & Johnson kicked off the week’s earnings stream.
Dow Jones Industrial Average (^DJI) futures fell 0.18%, or 61 points, while S&P 500 futures (^GSPC) fell 0.23%. Futures on the tech-heavy Nasdaq 100 (^NDX) fell 0.27%.
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