US Stock Market Overview – Stocks Close Mixed, Walmart Beats the Street; PPI is Hotter than Expected

US stocks fluctuated back and forth between positive and negative territory for most of the trading sentiment. While the robust positive sentiment seen last week has eased, stock prices are having a difficult time moving lower. Commentary from the Chinese shows that they are hesitant to peg a specific volume of ag products they are willing to purchase. Sectors were mixed, with Real-estate moving higher as US yields decline. Energy and consumer staples were the worst-performing sectors. Walmart reported better than expected financial results before the opening bell. US data was mixed. Wholesale inflation came in better than expected while jobless claims rebounded.

Walmart Reports Better than Expected Earnings

Walmart shares whipsawed initially surging but eased into the close. The company reported that sales rose in the most recent quarter, a sign of strong consumer spending ahead of the busy holiday shopping season. US sales comps, from stores and websites operating for at least 12 months, rose 3.2%, marking. E-commerce sales rose 41% in the U.S. bolstered by online grocery orders. Sales comps and earnings beat the street’s expectations. Net profit was $3.29 billion in the quarter compared with $1.71 billion a year ago. Total revenue was $128 billion, up from $124.9 billion a year ago.

Jobless Claims Rise to a 5-month High

US jobless claims increased 14,000 to 225,000 for the week ended November 9, which was the highest reading since June 22 according to the Labor Department. Expectations were for claims to rise by 4,000 to 215,000 in the latest week. The four-week moving average of initial claims, rose only 1,750 to 217,000 last week.

PPI Rise More than Expected but Remains Subdued

US Wholesale prices rose more than expected with the headline index ring 0.4% in October which was the biggest increase since April, after falling 0.3% in September. On a year over year basis in October, the PPI climbed 1.1%, the smallest increase since October 2016, after advancing 1.4% in the 12 months through September. Expectations were for the PPI to rise 0.3% in October and climb 0.9% on a year on year basis. PPI, excluding food and energy edged up 0.1% after being unchanged in September. Core PPI increased 1.5% year over year through October after gaining 1.7% in the 12 months through September.