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Stock Market Today: Dow ends lower as solid retail sales dent March Fed cut bets

Published 01/16/2024, 06:40 PM
Updated 01/17/2024, 04:18 PM
© Reuters.

Investing.com -- The Dow closed lower Wednesday for the third-straight session as Treasury yields continued to advance to put the squeeze on tech after stronger-than-expected economic data muddied investor expectations for a Federal Reserve March rate cut.   

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was down 94 points, or 0.3%, the S&P 500 fell 0.5%, and NASDAQ Composite fell 0.6%.

Treasury yields rise as consumer strength weighs on early-rate cut expectations 

U.S. Treasury yields continued to climb higher, with the yield on the 10-year Treasury note rose further above 4% to hit highest level this year after U.S. retail sales rose 0.6% in the month of December, topping expectations for 0.4%. Signs of a stronger consumer, which makes up about two-thirds of economic growth, suggesting the economy remains in good share dented expectations for a rate cut as soon as March.   

"A stronger-than-expected showing in retail spending reinforces the notion of an ongoing sound and resilient consumer, and more broadly, solid growth," Stifel said in a note.

The odds of a March rate cut fell to about 50% from 61% a year earlier, according to Investing.com's Fed Rate Monitor Tool.   

The data also added clout to remarks from Federal Reserve Governor Christopher Waller who indicated on Tuesday that while interest rate cuts were likely to happen this year, the central bank wasn't considering any in the near-term, citing continued resilience in the U.S. economy.

Charles Schwab falls after profit fall; Interactive jumps on earnings beat

The banking sector remained in the spotlight Wednesday, with Charles Schwab (NYSE:SCHW) stock fell 1% after the financial services group reported a 22% dip in net profit in 2023, saying it dealt with "challenges" posed by a tighter interest rate environment.

Interactive Brokers (NASDAQ:IBKR) rose 2% after fourth-quarter revenue topped analyst estimates, though earnings fell short of expectations as net interest income fell in Q4.

Ban on U.S. sales of Apple (NASDAQ:AAPL) Watch with blood oxygen to be reinstated 

The ban on the sale of Apple Watch models with the blood oxygen feature in the U.S. will be reinstated on Thursday after The U.S. Court of Appeals for the Federal Circuit today denied Apple's request to continue to allow imports of the watches amid a patent dispute with medical device maker Masimo (NASDAQ:MASI). 

Apple was banned from selling its watches that included the feature to monitor blood-oxygen levels in the U.S. on Dec. 26, but the ban was temporarily lifted a day later after Federal appeals court granted Apple's emergency request to pause to consider the company's request for a longer lift of the ban.   

Tesla falls on Model Y price cuts, Boeing (NYSE:BA) gets 737 Max 9 boost, Disney rejects activist proxy push

Tesla Inc (NASDAQ:TSLA) fell 2% after slashing the price of its Model Y prices in Europe, triggering fresh concerns about margin pressures following several price cuts last year.  

The latest slump in the EV maker comes a day after Elon Musk said he would prefer to "build products outside of Tesla" unless the board raises his stake in the company to 25% from his current stake of 13%.   

Boeing Co (NYSE:BA), meanwhile, rose 1% after the Federal Aviation Administration said it had completed preliminary inspections on 40 Boeing 737 Max 9 airplanes, raising hopes of an eventual ungrounding of the airplanes. Boeing 737 Max 9 airplanes have been grounded indefinitely for new safety checks after an Alaska Airlines MAX 9 jet was forced into an emergency landing following a cabin panel blowout mid-flight. 

Walt Disney (NYSE:DIS) stock fell 3% after the entertainment giant rejected nominees to its board of directors put forward by activist investors, saying its current leadership team has made "considerable" progress in executing a sweeping overhaul of the company.

Energy stocks continue slip as oil prices struggle on China data

Energy stocks ended nearly 1% lower as oil prices even as oil prices rebounded from session lows following disappointing growth data from China, the world's second-largest crude consumer, raised concerns about future demand increases.

EOG Resources Inc (NYSE:EOG), Marathon Oil Corporation (NYSE:MRO), and Valero Energy Corporation (NYSE:VLO) were down more than 1%.

(Peter Nurse, Oliver Gray contributed to this article.)

Latest comments

bitcoin is signaling a major top and It collapse by at least 50% from its top. extreme danger for inexperienced traders..
good morning 🌞
A fitting end of another day in the BIGGEST INVESTMENT JOKE IN THE WORLD.
loser Mitch is at it again.....
Mitch is in the self loathing stage of his sever financial loss. he's missed a fantastic market rally and his friends are laughing at him....I wonder what his wife is thinking....
Short term the Fed will cut rates so banks can refi their bad debt that is due. Then the Fed will increase rates after that.
How does it benefit the banks if we refinance  our mortgage (or other) loans to a lower rate now and then rates go up longer term?
The 2PM "investor" club shows up as usual during every loss, and predictably "snaps up beaten down shares" to save the day.  Where's the 2PM "investor" club that shows up to sell during every "rally"?  Fraudulent, criminally manipulated JOKE.
So why aren't you making your trades at 2PM since it is so predictable?
Beige book report came out at 2 pm
Mitch you've become irrelevant......
Rate cut ? Rate cuts ! Why is it all these articles routinely imply that the only upside in the market lies in rate cuts ? The whiners want their free money back, obviously spoiled by Zero rate policy which has done lasting damage to the US economy in ways most Americans even in the financial class can't understand.
I think they imply it because that is exactly how investors are behaving. We want our free money now! WAAAAAHHHH!
Round one of the magical "late trade" intervention is in the books.  What's the next move for the flagrantly manipulated, biggest investment JOKE in the world?
rate CUT?! CUT?! LMAOOO. we are going to be lucky if we do not get more hikes.
Inflation was up 0.1% in November and 0.3% in December, so not only is it up but it is accelerating. The valuations of stocks and P/Es are already massively inflated. Retail sales are not "strong" they are typical holiday bump in a hyper-inflationary environment. Nobody cares about earnings, they care how much fake money the Fed is going to print.
2 Yr yield skyrocketing today. End game coming soon
interest rates high? Not really. I remember 12%. Adults acting like little kids now. The trickle down of The Immediate Gratification Generation.
Don't compare the rates with precious times. Workers buying power is much lower now than then. A 5% rate can mean easily 12% today's time.
ZS Beck, fair enough. point well taken. I let frustration get infont of my thinking sometimes.
Next moves soon to be down 5 %. Then gaslighting. Then the biggggggggg shoooooooort.
Short AFTER "down 5 %"?  Smh.
Market will go down at least 6 months
Team Biden's Boeing plane breaks down attempting to return from WEF Davos. Fitting.
Is it time to buy puts?
if you have to ask, then no
Don't buy at the top! Unless it's inverse etfs.
Spread between 2YR vs 10YR widening significantly today. Interest rate hike expected???
Inflation was up 0.1% in November and 0.3% in December, so not only is it up but it is accelerating. The valuations of stocks and P/Es are already massively inflated. Retail sales are not "strong" they are typical holiday bump in a hyper-inflationary environment.
What would a day in the laughingstock of the financial world be without a miraculous, intraday "recovery?"  Losses incessantly "recovered," while "gains" are uninhibited.  BIGGEST INVESTMENT JOKE IN HISTORY.
SP500 after falling 50% is 2300-2400. That is the time to fill up the boat.
A whole load of nothing. Marginal overshooting vs consensus and the market runs scared. I am filling the boat today. Amazing.
 Buying more of everything.
thanks
Play of the day. SPY 474 Calls.
away af? nice article
Hello
Central banks allowed a market bubble where 93% of stocks are owned by 10% of people. They’ve created a situation they can’t fix.
it's been like that for about last 5000 years. not central banks - it's rather because 90% make poor economic decisions, buying liabilities instead of assets
You mean like food?
The Fed controls the level of money in the Financial system primary with the interest rate. Just how did they allow the top 10% to own 93% of stocks and how is this a bubble just because 10% own this much proportionally?
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