Nasdaq Index, Dow Jones, S&P 500 News: Mixed Retail Results, Fed Speculation Shake US Markets
Highlights
- U.S. stocks decline on retail earnings, Fed minutes anticipation.
- Mixed retail results: Lowe’s, Best Buy down; Abercrombie up.
- Fed’s upcoming minutes, tech sector influence market mood.
U.S. Stocks Dip Amid Retail Earnings and Federal Reserve Anticipation
U.S. stocks are experiencing a downturn as traders react to disappointing retail results and await the Federal Reserve meeting minutes. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all opened lower, breaking a string of recent gains, particularly driven by tech shares.
Retail Sector Performance
Major retailers like Lowe’s and Best Buy saw their stocks fall after revising full-year sales outlooks downwards and reporting revenue misses.
Lowe’s reported a nearly 13% drop in sales year over year, while Best Buy’s revenue fell short of expectations, leading to a reduction in its fiscal year revenue and earnings per share projections.
American Eagle shares plummeted after a less-than-impressive holiday forecast, despite expecting sales growth ahead of analysts’ expectations.
Conversely, Abercrombie & Fitch exceeded estimates with a 20% jump in sales, raising its outlook in defiance of the broader apparel industry slowdown.
Dick’s Sporting Goods also raised its full-year guidance, citing strong back-to-school sales, with its shares opening higher after the announcement.
Federal Reserve and Tech Sector Influence
Investors are keenly awaiting the release of the Federal Reserve’s meeting minutes for insights into future rate decisions. The central bank’s previous meeting concluded with rates unchanged, and traders are speculating about the Fed’s next moves.
Meanwhile, tech stocks like Nvidia and HP are under close watch, with Nvidia’s shares experiencing a slight decline after reaching an all-time high.
Market Outlook and Expectations
The market’s focus is on the Fed’s meeting minutes and earnings reports from key tech companies, which are expected to provide direction for future trading. The current sentiment is cautious, with the Federal Open Market Committee anticipated to maintain rates at their December meeting.
Technical Analysis
The E-mini S&P 500 Index, currently at 4548.00, is trading above both its 200-day moving average (4293.83) and 50-day moving average (4370.13), indicating a bullish trend. This positioning above the key moving averages suggests sustained upward momentum.
The index is also nearing the minor resistance level at 4562.50, highlighting the potential for further gains if this resistance is breached. However, it’s relatively close to the minor support level at 4494.00, which could act as a critical juncture in preventing any significant downside.
Overall, the market sentiment for the E-mini S&P 500 appears bullish, supported by its stance above major moving averages and proximity to minor resistance, but cautious watch is needed due to the nearby support level.
