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U.S. stocks are down after hotter than expected retail sales

Published 10/16/2023, 07:30 PM
Updated 10/17/2023, 11:06 AM
© Reuters

Investing.com -- U.S. stocks were falling on Tuesday as third-quarter earnings season kicks into top gear amid retail sales numbers for September that came in stronger than expected. 

At 11:05 ET (15:05 GMT), the Dow Jones Industrial Average was down 38 points, or 0.1% while the S&P 500 was down 0.2% and the NASDAQ Composite was down 0.5%.

The main indices on Wall Street posted strong gains on Monday, with the 30-stock Dow gaining over 300 points, or 0.9%, while the benchmark S&P rose 1.1% and the tech-heavy Nasdaq climbed 1.2%.

More bank earnings scheduled 

Sentiment has received a boost from better than expected quarterly earnings to date, including numbers from Charles Schwab (NYSE:SCHW) on Monday and JPMorgan Chase (NYSE:JPM) on Friday.

Third-quarter earnings for S&P 500 companies have likely increased 2.2%, up from an estimated rise of 1.3% a week earlier, according to LSEG data.

There are more results from the financial sector due early Tuesday. Bank of America (NYSE:BAC) beat expectations on interest income, and Goldman Sachs (NYSE:GS) beat expectations on bond trading. Shares rose 1.5% and fell 1.3%, respectively. Pharmaceutical giant Johnson & Johnson (NYSE:JNJ) beat expectations are raised its outlook. Shares dipped 1.2%.

Elsewhere, Microsoft's (NASDAQ:MSFT) LinkedIn unit said it would lay off over 600 employees, more than 3% of the 20,000-strong staff, in the second round of job cuts this year for the social media network for professionals amid slowing revenue growth.

Tesla (NASDAQ:TSLA) has been asked to recall almost 55,000 Model X vehicles manufactured between 2021-2023 as the vehicle controller is likely to fail to detect low brake fluid and not display a warning light. 

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Retail sales rise more than expected

In economic data, retail sales for September came in stronger than expected at 0.7% versus the outlook for 0.3%.

A handful of Federal Reserve officials are also set to speak during the day, including New York's John Williams, Richmond's Thomas Barkin, Minneapolis' Neel Kashkari and Board Governor Michelle Bowman.

Crude rebounds after Venezuela-inspired loss

Oil prices edged higher, bouncing after the previous session’s slide on hopes the U.S. would ease sanctions on producer Venezuela, potentially easing the tight global supply situation.

The crude market slid around $1 a barrel on Monday after Reuters reported, citing multiple sources, that Venezuela’s government and the opposition plan to resume long-suspended talks on Tuesday.

This could eventually see Washington relax its sanctions on oil exports from this Organization of the Petroleum Exporting Countries member, which had been put in place following highly disputed elections in 2018.

Elsewhere, U.S. President Joe Biden will make a visit to Israel on Wednesday as the country prepares a large-scale ground invasion of Gaza as part of an offensive against Hamas militants.

(Oliver Gray contributed to this item.)

 

Latest comments

We could start launching nukes and the stock market will miraculously rally on news of “its your last chance to trade.” Stock market is a manipulative joke. Lets smile and rally our stocks when the worlds burning and kids are dying. Usually uncertainty kills the market. But guess these guys love a war pumping money to terrorist and getting assets in return
well 50% of all the money in the stock market is owned by 1% ! so why even bother! The house always wins.
Hotter than expected retail sales are pure illusion. The expectations were made on assumption of 3-4% inflation, while real inflation is 2-3 times higher.
Um, no, they're not. Please update this.
The roller-coaster is on the down swing for the moment.
The more market resist to fall down, the serious waterfall will come. Cause big money already know that and is moving. It might not be a ground attack means it might be or not. Anyway did market concerned region conflict so seriously? No. Fake news and fake moving market. I don't know war picture, but I know very clearly, inflation is rebound, and it can't change by some FD committee's tongue. I really miss real FD, like Mr. B.
Oliver gray refusing to call terrorists by their names? “Hamas militants” what a show…
what if China invade Taiwan? can us handle 3 wars?
That would be bullish for manipulators.So we could see new record highs in stocks.
US will probably abandon taiwan, its simply not worth defending its against a billion of chinese.
really? are you drunk or something?
Just got an offer of 6% on a 6-month CD ..... yummy!!! :P
Stock market shrugs off hot retail sales and surging bond yields. This market is as invulnerable as Superman. For today...
More debt is great news.Hopefully the Americans can go celebrate and eat more food to expand their waistlines to be winners yet again for the past 40 years in the fattest creatures in the world with the highest rate of diabetes and cancer.
How true.
Debt limit disaster looks coming soon. it is the main political card pubs have.
WOW WOW what an article,  I request Peter Nurse to shake up his and see the DOW & NASDAQ and then write an article instead of writing blindly, even kids can write even beautiful article like this
powell has enough excuses to jack up the rate.
5-6% interest rates are very reasonable. Anyone old enough to remember 15-20% interest rates, and anyone who has lived outside the US where rates are always that high, knows that even if rates stay at 5%, that's fantastic in the larger scheme of things. Stop the chicken little act, we're fine. Obviously, or this data would look very different.
turning up.. Bidenomics is working!
fed has to jack up the rate this month again to curb inflation. AI is also inflationary.
people come on! markets don't give a hoot about reality. if there are more longs then markets will drop, same goes for the opposite. simple!!!
The Big Fake!! The market is on the verge of collapse, but won't go. Maybe after Israel has to nuke Iran. There's a big stinky cauldron of conspiracy cooking on the other side of this world. Algos pretend not to see it until they have to. My puts are getting slaughtered this week, but how could any trader in his right mind go long?
Nobody's gonna nuke anybody.
Maximus. I certainly am not hoping for a nuclear conflict. What I was implying was, does it take something that severe to get Algos attention?
"Algos pretend not to see it..." Well, you sure give us plenty of information on which to judge the quality if your opinion.
why market not falling even war started?
War is good for USA, our number 1 export is death & destruction.
muaaahahahahahahahahahahaha. leave it there
Credit defaults heading higher everyday.With US consumer credit card debt at all time high.Keep buying that tech crap while dining out at the cheeseburger diners and then heading for the candy store. USA is in a right fine mess.
"US stocks" rofl, stop generalizing, commodity stocks are all up
They always try and gaslight on the main articles, but then you look at the other headlines and see reality "U.S. home builder confidence falls to lowest since January"
Under pressure, and the intraday volatility magically reappears.  BIGGEST INVESTMENT JOKE IN THE WORLD.
V type?
hy bro how are you
Lowered earnings forecast by sock puppet analysts with Ponzi IBs standby with deceptive mon fundamental fortune telling upgrade
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