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Wall Street ends lower as investors digest economic data

Published 12/09/2022, 05:39 AM
Updated 12/09/2022, 07:56 PM
© Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 29, 2022.  REUTERS/Brendan McDermid

© Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 29, 2022. REUTERS/Brendan McDermid

By Ankika Biswas and Noel Randewich

(Reuters) - Wall Street ended lower on Friday as investors assessed economic data and awaited a potential 50-basis point interest rate hike by the U.S. Federal Reserve at its policy meeting next week, while apparel company Lululemon slumped following a disappointing profit forecast.

U.S. producer prices rose slightly more than expected in November amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years, data showed.

"Today's data shows that inflation is coming down, but it's lingering and is stickier than most assume," said Anthony Saglimbene, chief market strategist at Ameriprise Financial (NYSE:AMP) in Troy, Michigan.However, in December, consumer sentiment improved, while inflation expectations eased to a 15-month low, a University of Michigan survey showed.

Futures trades suggest a 77% chance the Fed will raise interest rates by 50 basis points next week, with a 23% chance of a 75-basis point hike, with those odds little changed after Friday's economic data.

Consumer prices data for November, due Tuesday, will provide fresh clues on the central bank's monetary tightening plans.

Lululemon Athletica (NASDAQ:LULU) Inc tumbled almost 13% after the Canadian athletic apparel maker forecast lower-than-expected holiday-quarter revenue and profit.

Netflix Inc (NASDAQ:NFLX) gained 3.1% after Wells Fargo (NYSE:WFC) 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.

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

Of the 11 S&P 500 sector indexes, 10 declined, led lower by energy, down 2.33%, followed by a 1.28% loss in health care.

The energy index recorded a seventh straight session of losses, its longest losing streak since December 2018, as oil prices looked set for weekly losses on recession concerns. [O/R]

Wall Street's main indexes have fallen this week after logging two straight weekly gains. Weighing heavily on investors are fears of a potential recession next year due to extended the central bank's rate hikes.

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

U.S. stocks ended a recent run of losses on Thursday after data showed initial jobless claims rose modestly last week.

Broadcom (NASDAQ:AVGO) Inc jumped 2.6% after the chipmaker forecast current-quarter revenue above Wall Street estimates.

Boeing (NYSE:BA) Co climbed 0.3% after Reuters report the plane maker plans to announce a deal with United Airlines for orders of 787 Dreamliner next week.

Declining stocks outnumbered rising ones within the S&P 500 by a 3.3-to-one ratio.

© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 9, 2022.  REUTERS/Brendan McDermid

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

Volume on U.S. exchanges was relatively light, with 9.9 billion shares traded, compared to an average of 10.9 billion shares over the previous 20 sessions.

Latest comments

I want to invest
Great to see investing.com has fixed the comment spam problem.
Fraud
Thank you Trump and Biden for doubling the nation’s money supply both are a joke just like credit scores fiat money and you peoples thought process
You peoples?
lakes... biden inherited the policy mess that the trump administration created.
  How much did US money supply increase under Trump's term?  How much increase since Jan 2021?
How much of the increase since Jan 2021 is because "Biden inherited the policy mess that the trump administration created", e.g., mishandling the beginning of the covid pandemic?
Trump created more money in two months than since the signing of the constitution
the corrupt incompetent trump administration set the stage for this economic mess.....
in 2007?
  In 2007, Trump was setting  the stage for economic mess for his business partners and contractors.
. blaming the markets or fed .ect.... makes no sense to me.....the markets operate technically the information being broadcasted is already in the markets.sometmes there are short term reactions like the sudden drop this morning but those moves can usually be hedged.... commodity markets are a little more involved,.... example....the amount of Russian oil being pushed into the system is extraordinary..... commodities have to be monitored, but still the technical picture will ultimately signal direction..,.the hardest part is getting around the need to be right.....use stops, and be willing to admit when you're wrong...and if possible, change direction. that can be hard for most people to do.
there is no reason for the markets to pump before March next year.. if they do.. it's just to liquidate shorts .. few understand this
helen, lewis and Tom more spammers trying to separate you from your money
Buy
Bad for the economy is good for wall street. The only thing that keeps them going is free money.
"good for wall street"?  The market was red when you posted.
good
Dow can hit new life highs in December
Everyone ready for the criminal miracle "in late trade?"  You know, the time where savvy "investors" decide to load up on the most grossly overvalued equities in history into the close on a Friday so they can hold over the weekend?  Can't make this stuff folks.  What a JOKE.
yep I'm going long right about....now!
I see Olivia's spamming partne, r Adam is back too.....
more spam and scam from Olivia......
BlackRock: Prepare For Recession "Unlike Any Other"... And What Worked Before "Won't Work Now"
facts
The markets are soooooo manipulated. After all the data, news and forecasts... it's green?? Pathetic
the markets will tell when to sell Vetter. right now world capital flows are looking for safety. I told you my first target was 4100 S&P500. we are now in a consolidation. there is a new Target at 4300. we will have to see if that target is viable. the market will signal if it is.
  Some people can make money in both market directions; others can't.
First Last .. that's the point I've been trying to make. blaming the markets or fed .ect.... makes no sense to me.....the markets operate technically the information being broadcasted is already in the markets.sometmes there are short term reactions like the sudden drop this morning but those moves can usually be hedged.... commodity markets are a little more involved,.... example....the amount of Russian oil being pushed into the system is extraordinary..... commodities have to be monitored, but still the technical picture will ultimately signal direction..,.the hardest part is getting around the need to be right.....use stops, and be willing to admit when you're wrong...and if possible, change direction. that can be hard for most people to do.
Oops, it's up now !
Inflation?...is that something new. lol??. That's why stocks were pumped up yesterday to offset todays losses. Its such a rigged game, but rest assured Wall St. will be on the right side of the trade when this implodes
exactly
It slips Up??
telegraphed news.
PPI is backward looking. if you look at the average month over month PPI over the past 4 months it is only .85%. if we continue going forward at 3% per month over the next 8 months the annual PPI will come out at about 3.2%
you live in Fantasyland. There's nothing to support your forward assertions.
don't mislead, better shut up.
Fed buys a bunch of debt at zero percent interest, calls it QE.  Fed prints a bunch of fiat money to pump up inflation, while holding "conflict of interest" positions in the stock market.  Fed dramatically hikes interest rates to curtail inflation it created. Finally, Fed unwinds balance sheet to general public at obscene interest rates, so it may begin collecting interest payments on previously unavailable bonds...
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