Stocks start trading solidly despite decline in retail sales

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U.S. stock futures were little changed on Thursday, pushing for another rebound as investors digest disappointing retail sales, raising further questions about a “soft landing” scenario for the U.S. economy.

The S&P 500 (^GSPC) rose 0.2%, marking a solid recovery as the benchmark once again crossed the 5,000 mark. The Dow Jones Industrial Average (^DJI) rose 0.5%, while the tech-heavy Nasdaq 100 (^NDX) fell 0.2%.

Stocks recouped some of the steep losses recorded on Tuesday as high inflation dampened hopes for a rate cut. Comments from Fed policymakers downplaying the data helped calm nerves.

But investors are still wondering whether the selloff was temporary, driven by seasonal weakness, or the beginning of a larger pullback. Many Wall Street strategists said there were signs of resilience even as stocks fell.

read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards

Investors on Thursday focused on January retail sales, which fell 0.8% from the previous month, raising questions about consumer resilience and the possibility of a “no-landing” scenario for the United States.

Wall Street will also hear from Fed officials Christopher Waller and Rafael Bostic later in the day, with the latter speaking after the bell.

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Thursday, February 15, 2024 8:54 PM GMT+5:30

JP Morgan and Disney hit 52-week highs

The Dow Jones Industrial Average (^DJI) rose 0.5% as constituent stocks JPMorgan (JPM) and Disney (DIS) both hit 52-week highs.

Disney stock is up about 13% since the entertainment giant posted a quarterly profit last week.

JPMorgan has risen about 6% in the past month, as financial stocks as a whole rose.

On Thursday, the S&P 500 (^GSPC) rose 0.2% following a solid rally in the front that saw the benchmark once again surpass the 5,000 mark.

The tech-heavy Nasdaq 100 (^NDX) fell about 0.2% during the session.

Retail sales fell 0.8% in January From the previous month. Economists had expected spending to fall 0.2%. The worse-than-expected results raise questions about whether America’s resilient consumers are losing momentum.
Thursday, February 15, 2024 8:04 PM GMT+5:30

Stock price remains almost unchanged even after retail sales decline

The S&P 500 (^GSPC) flatlined on Thursday with a solid recovery as the benchmark once again crossed the 5,000 mark.

The Dow Jones Industrial Average (^DJI) and the Nasdaq 100 (^NDX), which are dominated by high-tech stocks, also showed little change.

Investors focused on new economic data to be released on Thursday.Retail sales decreased by 0.8% in Spending was expected to fall 0.2% in January from the previous month, according to Bloomberg data. The findings raise questions about whether America’s resilient consumers are losing momentum.
Thursday, February 15, 2024 6:40pm (GMT+5:30)

Cisco said everything you don’t want to hear from a tech company right now

Cisco (CSCO) stock is currently one of the top trending tickers on Yahoo Finance and is down about 4% in pre-market trading.

Moving down makes all kinds of sense.

The company said everything investors don’t want to hear from a tech giant on earnings day: inventory adjustments, declining demand, an uncertain outlook and worse-than-expected guidance. I could go on, but why?

Wall Street got Cisco executives to admit it this morning after another guide went down. The most vocal of the group is Jefferies analyst George Notter.

“Their comments that a softer macro environment is also impacting the business are not well received, and there remain concerns regarding market share,” Notter said in a client note. The memo’s heading is Confession of inventory correction second journey.

ah.

Relief for Cisco bulls: Executives said on an earnings call last night that the company’s $28 billion acquisition of Splunk is likely to close early, by the end of the second quarter. If the business were to become part of Cisco, the company’s CFO would probably adjust its guidance upwards to factor in Splunk’s profitability.