Wall Street ends lower as investors digest economic data

  • US prices rose in November
  • Consumer sentiment improved in December
  • Lululemon falls after weak forecast
  • Nearby indices: S&P 500 -0.73%, Nasdaq -0.70%, Dow -0.90%

Dec 9 (Reuters) – Wall Street ended lower on Friday as investors weighed economic data and awaited the possibility of a 50-basis interest rate cut by the US Federal Reserve at its policy meeting next week, while clothing company Lululemon fell following a disappointing profit report. .

US producer prices rose slightly more than expected in November amid a jump in labor costs, but trends are easing, with annual factory-gate prices showing the smallest increase in 1-1/2 years, the report showed.

“Today’s data shows that inflation is slowing, but it’s slower and harder than many think,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. However, in December, consumer sentiment grew, when the expectation of inflation was reduced to 15 months, a study by the University of Michigan showed.

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Futures trade shows a 77% chance the Fed will raise interest rates by 50 basis points next week, and a 23% chance of a 75 basis point hike, while the odds changed slightly after Friday’s economic report.

Consumer price data for November, due Tuesday, will provide new clues on the central bank’s monetary policy.

Lululemon Athletica Inc ( LULU.O ) fell nearly 13% after the Canadian apparel maker forecast lower-than-expected holiday quarter earnings and profits.

Netflix Inc (NFLX.O) gained 3.1% after Wells Fargo upgraded the video to “overweight” from “equal weight”.

The S&P 500 declined 0.73% to end the session at 3,934.38 points.

The Nasdaq fell 0.70% to 11,004.62 points, while the Dow Jones Industrial Average fell 0.90% to 33,476.46 points.

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Of the 11 S & P 500 indexes, 10 declined, led by energy (.SPNY), down 2.33%, followed by a 1.28% loss of health care (.SPXHC).

The energy index posted its seventh straight session of losses, its longest loss since December 2018, as oil prices look set for weekly losses in the recession.

Wall Street’s major indexes fell this week after posting two consecutive weekly gains. A major concern for investors is the fear that the economy could collapse next year due to the central bank’s increased monetary policy.

For the week, the S&P 500 fell 3.4%, the Dow lost 2.8% and the Nasdaq lost 4%.

US stocks pared recent losses on Thursday after reports showed jobless claims rose slightly last week.

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Broadcom Inc ( AVGO.O ) jumped 2.6% after the chipmaker reported its latest quarterly earnings that beat Wall Street estimates.

Boeing Co rose 0.3% after Reuters reported the plane maker plans to announce a deal with United Airlines ( UAL.O ) to order 787 Dreamliners next week.

Declining stocks outpaced rising ones within the S&P 500 (.AD.SPX) by a 3.3-to-one ratio.

S&P 500 sets 5 new highs and 1 new low; The Nasdaq recorded 54 new highs and 213 new lows.

Volume on the US exchange was light, and 9.9 billion shares were traded, compared to about 10.9 billion shares in the previous 20 quarters.

Reporting by Sruthi Shankar, Ankika Biswas and Johann M Cherian in Bengaluru, and Noel Randewich in Oakland, Calif.; Editing by Vinay Dwivedi, Sriraj Kalluvila, Shounak Dasgupta and Aurora Ellis

Our Standards: Thomson Reuters Trust Principles.

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