S&P, Nasdaq, Dow Jones futures bounce around ahead of retail sales – Seeking Alpha
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The stock market has struggled for direction on Thursday as it has changed back and forth from negative to positive territory.
The Nasdaq Composite (COMP.IND) is -0.4%, the S&P 500 (SP500) is -0.1%, and the Dow (DJI) is +0.3%.
Seven of 11 S&P sectors are lower. Info Tech is among the weakest as selling in Adobe intensifies. Healthcare and Financials are the market’s brightest spots.
The 10-year Treasury yield (US10Y) is up 5 basis points to 3.46%. The 2-year yield (US2Y) is up 8 basis points to 3.86%.
Auto sales drove August retail sales up 0.3%, compared with expectations for a 0.1% drop, Ex-autos, sales were down 0.3%.
“Retail Sales is notoriously noisy, but I’ll say this. I’d rather see CPI come in hot but consumer spending figures come in slow than the opposite. Inflation won’t subside until spending slows, so a weaker CPI w/o slower spending would almost certainly be spurious,” Tom Graff of Facet Wealth tweeted.
The Philly Fed’s measure of manufacturing activity plunged to -9.9, well below the forecast of 2.8. That takes a little pressure off the Fed. But at the same time jobless claims tumbled to 213K, reinforcing the need for the FOMC to cool the labor market.
“If the Fed views labor market softening as a way to achieve their inflation objectives, they cannot be happy with what they saw today,” Renaissance Macro said. “Initial claims have declined to their lowest levels since May. The insured unemployment rate has been flat since April. Labor markets are tight.”
Industrial production for August fell 0.2% vs. expectations for a 0.1% rise.
Looking at active issues, casino stocks are among the best performers in the S&P after Wynn caught an upgrade from Credit Suisse.