Market Snapshot: Dow ekes out small gain as stocks end mostly lower, after strong U.S. retail sales data

by | Oct 17, 2023 | Stock Market

U.S. stocks ended flat to lower Tuesday as investors eyed strong consumer spending data for September and third quarter earnings results, offset by a rise in Treasury yields after healthy economic data suggested the Federal Reserve may keep interest rates higher for longer. How stocks traded
The Dow Jones Industrial Average
rose 13.11 points or less than 0.1%, to end at 33997.65

The S&P 500
fell 0.43 point, or less than 0.1%, to finish at 4373.20

The Nasdaq Composite
declined 34.24 points, or 0.3% to 13,533.75

On Monday, the Dow Jones Industrial Average rose 314 points, or 0.9%, to 33,985, the S&P 500 increased 46 points, or 1.1%, to 4,374, and the Nasdaq Composite gained 161 points, or 1.2%, to 13,568.

What drove markets About 10% of the S&P 500 index companies are due to report this week, and the majority of those who have already done so have beaten expectations on both earnings and revenues, according to Richard Hunter, head of markets at Interactive Investor. Results from JPMorgan Chase
and Wells Fargo
were mostly well-received by traders on Friday. On Tuesday it was the turn of their peers, including Goldman Sachs
and Bank of America
and BNY Mellon
to release numbers. All three produced results beating Wall Street consensus. Johnson & Johnson
and Lockheed Martin
also published results in the morning, while Omnicom
and Interactive Brokers
are releasing reports after the closing bell. In data reported Tuesday morning, U.S. September retail sales were stronger than expected, raising the possibility of the Federal Reserve at least keeping interest rates higher for longer in its quest to lower inflation. Retail spending in September jumped 0.7%, beating forecasts. Stripping out auto sales, retail sales still popped 0.6% last month. Economists polled by the Wall Street Journal expected a 0.2% increase. See: U.S. retail sales rise sharply due to strong car sales and higher gas prices “Consumer spending shows little sign of flagging,” said Robert Frick, corporate economist at Navy Federal Credit Union. There may be signs of sagging credit card use and a switch to cash with more debit card use. “As long as the jobs ma …

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