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U.S. stocks move lower as Snap and retail shares plummet

Published 05/11/2017, 11:27 AM
Updated 05/11/2017, 11:37 AM
© Reuters.  Wall Street trades lower as Snap and retailers dampen optimism

Investing.com – Wall Street traded lower on Thursday as disappointing earnings from Snap and some retailers dampened enthusiasm for stocks despite upbeat economic data.

At 11:23AM ET (15:23GMT), the Dow Jones fell 91 points, or 0.44%, the S&P 500 lost 13 points, or 0.52%, while the Nasdaq Composite traded down 34 points, or 0.56%.

Shares in Snap Inc (NYSE:SNAP) plummeted more than 18% on Thursday after the Snapchat owner reported slowing user growth and revenue in its first earnings report as a public company, missing some Wall Street estimates.

Straight Path Communications (NYSE:STRP) sank by around 20% after the wireless spectrum holder agreed to accept Verizon’s (NYSE:VZ) takeover offer of $184 per share in stock, over an earlier lower offer from AT&T (NYSE:T).

Retailers were also under pressure with Macy’s (NYSE:M) falling nearly 14% after the department store chain reported a much bigger-than-expected drop in quarterly profit and sales.

Shares in Kohl’s (NYSE:KSS) were off more than 6% as its own sales missed consensus.

Nordstrom (NYSE:JWN) will add to retailers’ results when it releases quarterly numbers after the market close.

Not all earnings news was negative as Whole Foods Market (NASDAQ:WFM) traded up nearly 2% after same-store sales fell less than feared and the company named five new independent directors to its board.

On the economic front, weekly jobless claims unexpectedly fell in yet another sign of solid U.S. labor market conditions.

Producer price inflation also increased more than expected, giving the Federal Reserve (Fed) more ammunition to raise rates in June.

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Markets currently price the odds at around 81%, according to Investing.com's Fed Rate Monitor Tool.

The only U.S. policymaker to speak on Thursday, New York Fed president William Dudley steered clear of monetary policy but did warn that trade protectionism was a "dead end" that would ultimately hurt the economy.

Meanwhile, oil prices moved higher on Thursday, extending their biggest one-day jump since December after U.S. government data revealed the largest weekly decline in crude supplies so far this year.

U.S. crude futures gained 1.45% to $47.97by 11:26AM ET (15:26GMT), while Brent oil rose 1.43% to $50.94.

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