Major US stock indexes finished trading without a single dynamic, as shares of consumer companies and banks fell after disappointing retail sales data raised concerns about retailers' future profits and increased the likelihood of lower interest rates. However, growth in technology stocks and optimism about trade negotiations between China and the United States supported the market.
The Commerce Department reported that retail sales fell 1.2% in December, after rising 0.1% in November. Economists had expected sales to grow by 0.2%, which corresponds to the growth reported in the previous month. An unexpected decline in retail sales occurred, despite a noticeable increase in sales of autos and parts, which grew by 1.0% in December, after rising by 0.7% in November. Excluding the increase in car sales, retail sales fell another -1.8% in December after a steady increase in November. Sales at gas stations contributed to the decline amid falling gasoline prices, which fell by 5.1% in December, after falling by 4.4% in November.
In addition, Fed spokesperson Lael Brainard told CNBC that the December drop in US retail sales caught my attention. “Downside risks to GDP growth have definitely increased,” Brainard said, adding that she should wait some time before making another decision regarding interest rates.
Meanwhile, trade negotiations between representatives of the United States and China continued in Beijing. According to the South China Morning Post, China and the United States said they are far apart in terms of monitoring China’s structural reform actions, but the United States can cancel 10 percent tariffs -
Most of the components of DOW finished trading in the red (17 out of 30). The Coca-Cola Co. shares turned out to be an outsider. (KO, -8.01%). The leader of growth were shares of Cisco Systems Inc. (CSCO; + 2.34%).
Most sectors of the S & P recorded an increase. The health sector grew the most (+ 0.6%). The largest decline was shown by the consumer goods sector (-0.5%).
At the time of closing:
Dow 25,438.58 -104.69 -0.41%
S & P 500 2,745.68 -7.35 -0.27%
Nasdaq 100 7,426.96 +6.58 +0.09%