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U.S. stocks mixed after retail earnings, Fed minutes

Published 08/16/2023, 07:32 PM
Updated 08/17/2023, 11:12 AM
© Reuters

Investing.com -- U.S. stocks are mixed after a slate of reports from major retailers such as Walmart and Target and as investors digested the minutes of the Federal Reserve's meeting in July.

At 10:05 ET (14:05 GMT), the Dow Jones Industrial Average rose 63 points or 0.1%, while the S&P 500 rose less than 0.1% and the NASDAQ Composite fell 0.4%.

The main equities indices closed lower Wednesday, a second consecutive losing day, with the NASDAQ Composite hit particularly hard, dropping 1.2%, on worries that additional tightening will disproportionately hit the debt-laden tech sector.

Fed minutes hint at future rate hikes

The minutes from the Fed’s July meeting, when the central bank officials decided unanimously to lift rates by 25 basis points, showed that most still saw "significant" upside risks to inflation, a sign that further rate hikes could be needed to slow the economy just as upbeat data forced the central bank to ditch its recession call.

The U.S. central bank is still widely seen standing still at its next policy meeting in September, but expectations are growing that there could be another hike in November as July's meeting came before a raft of U.S. data that underscored the resilient economy.

New jobless claims came in at 239,000, slightly lower than expected. The Philadelphia manufacturers index was 12, compared with the negative 10 expected.

Walmart in spotlight

It’s Walmart's (NYSE:WMT) turn to be in the spotlight Thursday as it raised its full-year guidance. Shares fell 1.3% after the report.

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The world’s biggest retailer improved its annual earnings guidance for the second time this year. Unlike peers, Target (NYSE:TGT) and Home Depot (NYSE:HD), Walmart has likely been a beneficiary of a recent pullback in consumer spending on nonessential items.

Cisco optimistic over AI opportunities

Cisco Systems (NASDAQ:CSCO) traded higher by nearly 4% after the networking equipment maker’s Chief Executive, Chuck Robbins, talked up market share wins and artificial intelligence opportunities, as he moved to allay fears over slowing growth after a disappointing annual revenue forecast.

Wolfspeed (NYSE:WOLF) stock slumped 19.2% after the chipmaker issued a disappointing fiscal fourth quarter earnings report after the close Wednesday.

Crude helped by U.S. stockpiles draw

Oil sentiment remains weak, given worries slowing growth in China and a continued hawkish stance from the Federal Reserve will weaken fuel demand in the world's two biggest economies.

Additionally, data from the Energy Information Administration showed that U.S. production hit a new three-year high last week, close to the record-high levels produced before the COVID-19 outbreak in 2020.

(Peter Nurse and Oliver Gray contributed to this item.)

Latest comments

Oversold. What a speculation. Fake drop
Powell is a stupid man.
He was 1st appointed Chair by a stupid man-child.
a month ago the market would have rallied 200 points on this news. it's clear the hedge funds are back stealing 401ks to cover their asses
One of the first thing all these companies are cutting now that their cash flow is dropping is DEI. They know that DEI is just a grift. Also many courts are ruling them unconstitutional. DEI initiatives are explicitly discriminatory and racist against white people. This is why "equal opportunities" makes people trust black people less. When we do not know if a minority person go their position because of their skin color, why would we trust them? Why would you trust a black doctor if they only got in because they are black when an asian or white person has to do twice as well to get to the same place?
It seems comments on Cisco AI are not allowed.
I'm confused as to how an AI platform will run inside a router? Any architecture diagrams I've seen show the AI platform software running in a server farm with other platforms accessing AI apis via web services.
I thought last week retail report was GREEEEEEAT???
Under “Bidenomics,” prices are up 16.6%, real wages are down 3%, interest rates are at their highest in 22 years, and the U.S. credit rating was just downgraded, 1 Aug which means cost for borrowing will increase.
Come on Man!  Capitalism is bad stuff!  Marxism & government control is the way of the future!  Just look at all the US Democrat/Socialist controlled cities (San Francisco, Baltimore, Chicago where crime & drug use is exploding, people & businesses are leaving, & corrupt officials rule...then Cuba, Iran, Venezuela, North Korea, CCP China - government watching your every move, CBDCs so they can know when you buy toothpaste & block access to your money when you want to buy diesel instead of an EV.  Be happy & be quiet!
 Thanks to democrats, yesterday Target reported that stores have seen a 120% increase in theft involving violence the first 5 months of 2023. Earlier this year, Target said they expect to lose $1.3 BILLION due to theft in 2023. This is up $500 million from theft losses in 2022.
Putting snipers in every store will drastically reduce theft
As usual the futures always tick higher.when investors are waiting or digesting upcoming reports.......even while digesting yesterday Fed minutes...
the market is finished. the government is broke
marki, you need to learn to read a balance sheet...the USA is far from being broke .....
print more money or steal Americans 401ks and destroy the middle class so the wealthy can keep their 5 beach houses
marki you need to learn how to read a balances sheet ....the USA is far from being broke...
CSCO is another dog, just like INTC. It still hasn't revisited its ATH from the early 2000s.
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