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Traders work on the floor of the New York Stock Exchange during afternoon trading on January 17, 2024 in New York City.
Michael M. Santiago | Getty Images News | Getty Images
This report is from today’s CNBC Daily Open, our new international markets newsletter. The CNBC Daily Open provides investors with everything they need to know, no matter where they are. Like what you see?You can subscribe here.
Dow falls for 3 days
On Wednesday, the blue-chip Dow Jones Industrial Average fell for the third day in a row. Wall Street’s other major indexes also fell as better-than-expected retail sales data helped push U.S. Treasury yields higher. European stocks also fell after British inflation unexpectedly rose 4% year-on-year in December, with British shares leading the regional decline.
strong retail sales
In a sign that the holiday season is picking up steam, U.S. retail sales in the final month of 2023 exceeded expectations. Retail sales rose 0.6% in December, compared to the Dow Jones forecast for a 0.4% increase. The rise was driven by clothing, accessories and online shopping.
Daimon of Davos
JPMorgan Chase CEO Jamie Dimon was one of the most anticipated guests at the World Economic Forum in Davos, Switzerland. Mr. Dimon discussed a variety of topics ranging from financial risk to geopolitical risk. He was also seen praising former President Donald Trump’s stance on the U.S. economy, immigration and taxes.
Apple Watch sales will be banned again in the US
The U.S. Court of Appeals for the Federal Circuit has reinstated a ban on the sale of Apple watches equipped with blood oxygen sensors. The ban goes into effect Thursday and affects both Apple Watch Series 9 and Ultra 2 models. The injunction stems from an intellectual property dispute with medical device manufacturer Masimo.
[PRO] cheap energy stocks
Experts say parts of the energy market are poised to soar after last year’s slump. The energy sector was the second biggest decliner in the S&P 500 last year. The CNBC Pro Screener Tool says companies in this sector still have the potential to perform well, as their stocks are cheap and are expected to rise more than 10% above their average price targets.
We’re only three weeks into the new year, but the market is slowly entering a cycle where good data is taken as bad news, at least from a stock perspective.
However, U.S. Treasury yields rose this week, boosted by comments from Federal Reserve Chairman Christopher Waller on Tuesday. The yield on the benchmark 10-year Treasury note continued to rise on Wednesday, passing the 4% milestone after December’s better-than-expected U.S. retail sales.
The data shows that U.S. consumers loosened their wallet strings some in the final months of 2023. But for Wall Street, that was little reason to celebrate, given how aggressively markets had priced in rate cuts by the Federal Reserve.
Waller’s comments Tuesday at Davos about the U.S. central bank taking its time cutting interest rates this year came as markets had expected the Fed’s first rate cut of 2024 to come as early as March. was a contrast.
“The Fed has already sent a message that there is no rush to cut rates, and today’s better-than-expected retail sales figures are no reason to change course,” said Chris Larkin, managing director of trading and investments. said. Morgan Stanley for his E-Trade.
About 55% of traders tracked by CME Group’s FedWatch tool expect a 25 basis point rate cut in March, down from 63% a day earlier.
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