Wall Street diverges on “double-edged sword” data: market mixed

(Bloomberg) — Wall Street traders sent stocks lower and bonds higher after the latest round of economic data signaled a slowdown in momentum.

Bloomberg’s Most Read

Just 24 hours before the release of the Federal Reserve’s preferred price gauge, a report showed that the US grew at a softer pace – as both spending and inflation were reduced. An economic slowdown could mean the central bank may have room to cut interest rates this year. But this could also be a concern for consumption and corporate profits.

“Current economic data is a double-edged sword,” said Chris Zaccarelli of the Independent Advisor Alliance. “The slowdown in personal consumption is a sign that economic expansion is slowing down, which could be a concern for companies. But on the other hand, the slowdown in consumption and economic growth may be just the news we need to see for the inflation rate to continue to decline and allow the Fed to cut interest rates after all.”

The S&P 500 fell below 5,250, led by losses in its most influential group. Technology stocks were hit as Salesforce Inc. fell after the software maker said sales growth in the current quarter will reach the slowest level in history. Kohl’s Corp. it also plunged after signaling that demand for clothing and household goods remained weak.

Two-year Treasury yields, which are more sensitive to the Fed’s impending measures, fell four basis points to 4.93%. The dollar retreated.

Corporate Highlights:

• Dollar General Inc.’s sales rose more than expected in the latest quarter, signaling progress in the discount retailer’s turnaround efforts.

• Best Buy Co. reported better-than-expected profitability in the first quarter, even as sales problems worsened and consumers remained on the sidelines in their electronics purchases.

• HP Inc. reported quarterly revenue that beat analysts’ estimates, including the first increase in PC sales in two years, an optimistic sign for a long-awaited recovery in the market.

Main events this week:

• Japan unemployment, Tokyo CPI, industrial production, retail sales, Friday

• China’s official manufacturing and non-manufacturing PMI for Friday

• Eurozone CPI, Friday

• US Consumer Income, Spending, PCE Deflator, Friday

• Fed’s Raphael Bostic speaks on Friday

Some of the main movements in the markets:

Actions

• The S&P 500 was down 0.3% at 10:23 a.m. New York time

• The Nasdaq 100 fell 0.4%

• The Dow Jones Industrial Average fell 1%

• The Stoxx Europe 600 rose 0.6%

• MSCI World Index little changed

The story continues

Coins

• The Bloomberg Dollar Spot Index fell 0.3%

• The euro rose 0.3% to $1.0836

• The British pound rose 0.2% to $1.2729

• The Japanese yen rose 0.6% to 156.74 per dollar

Cryptocurrencies

• Bitcoin rose 2% to $68,761.24

• Ether rose 1.1% to $3,791.22

Titles

• The 10-year Treasury yield fell five basis points to 4.56%

• Germany’s 10-year yield fell two basis points to 2.67%

• Britain’s 10-year yield fell four basis points to 4.36%

goods

• West Texas Intermediate crude fell 0.4% to $78.95 a barrel

• Spot gold rose 0.5% to $2,350.23 an ounce

This story was produced with help from Bloomberg Automation.

–With assistance from Sagarika Jaisinghani, Alex Nicholson, Chiranjivi Chakraborty, Winnie Hsu and Stephen Kirkland.

Bloomberg Businessweek Most Read

©2024 Bloomberg LP

Source