U.S. Stocks Slip After Retail Sales Unexpectedly Fall
16 Octubre 2019 - 9:23AM
Noticias Dow Jones
By Will Horner
U.S. stocks fell Wednesday as economic data suggested consumers
were holding back on spending in the face of trade tensions and a
global economic slowdown.
The Dow Jones Industrial Average fell 0.1% to 27007. The S&P
500 slipped 0.2%. The Nasdaq Composite lost 0.3%. Global stocks,
meanwhile, wavered as concerns lingered over Brexit talks and the
prospect of a U.S.-China trade deal.
Data from the Commerce Department Wednesday showed that U.S.
retail sales slipped 0.3% in September. Economists polled by The
Wall Street Journal had been anticipating the data to show a 0.2%
rise in sales.
Concerns about economic growth are continuing to bubble. The
International Monetary Fund this week cut its global GDP forecast
for 2019 to just 3%, its lowest level since the 2008 financial
crisis, citing trade tensions and geopolitics. It projected 3.4%
growth in 2020.
Even that might be too optimistic, Oxford Economics wrote. "We
think the worst effects of the industrial and trade sector weakness
is yet to pass, " the firm wrote in a note.
Despite those worries, major U.S. stock indexes remain near
all-time highs. Investors will look to corporate earnings season
for new drivers.
Bank of America shares rose 2.9% as the bank reported gains in
its consumer, wealth and commercial businesses.
PNC Financial Services Group reported a rise in revenue that
beat analysts' forecasts, pushing shares up 1.3%. Bank of New York
Mellon shares rose 1.1% on stronger-than-expected earnings.
Shares of McKesson, AmerisourceBergen and Cardinal Health
rallied after The Wall Street Journal reported they were in talks
to settle opioid crisis litigation. Shares in McKesson rose 4%,
AmerisourceBergen rose 2.1%, and Cardinal Health rose 2.6%.
IBM and Netflix will also report their third-quarter earnings
after markets close in the U.S.
The pan-continental Stoxx Europe 600 index edged 0.1% lower as
talks toward a draft plan for Britain to leave the European Union
continued. Investors had been anticipating positive news to emerge
overnight but were disappointed by a lack of progress Wednesday,
said Peter Dixon, a senior economist at Commerzbank.
"We were told there would be a deadline of midnight last night;
both sides sounded very positive. Then we woke up and it was still
a work in progress and I think that has changed investors'
perceptions of where we are," he said.
Even if a deal is reached, questions remained about whether the
British Parliament will back it, others cautioned.
"It does look like there is progress but there are hurdles to
get something agreed with the EU and then it will be difficult to
get it through Parliament," said Christopher Peel, chief investment
officer at Tavistock Investments.
The British pound, which had hit a four-month high against the
U.S. dollar a day earlier, was flat while the FTSE 100 gauge for
U.K. equities slipped 0.4%.
Chinese stocks edged lower on concerns that tensions with the
U.S. over the Hong Kong protests would make striking a trade deal
more complicated.
The Shanghai Composite Index fell 0.4% after the U.S. House of
Representatives passed a series of bills backing pro-democracy
protesters in Hong Kong, drawing a strong rebuke from China. A
Chinese Foreign Ministry spokesman warned the U.S. against meddling
in Chinese affairs and said the bill would damage relations between
the two nations.
The development may complicate efforts to reach a trade
agreement, analysts said.
"We got sideswiped by those headlines from China," said Stephen
Innes, a market strategist for currency broker AxiTrader in
Bangkok. "I'm not sure much is going to actually come from it, but
it's just another thing to deal with."
(END) Dow Jones Newswires
October 16, 2019 10:08 ET (14:08 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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