Stocks fluctuate as retail earnings loom

US stocks fluctuated on Monday but ended the day lower as Wall Street awaited another round of earnings and key data from the retail sector.

The S&P 500 (^ GSPC) was down 0.9% on the day, while the Dow Jones Industrial Average (^ DJI) was down 0.6%, or more than 200 points. The high-tech Nasdaq Composite (^ IXIC) fell 1.1%.

Equities ended last week with the biggest gains in months, with lighter inflation data sparking hope among investors that a monetary policy shift is near. The S&P 500 was up nearly 6%, while the Nasdaq gained around 8% for the week.

Treasury yields rose Monday and the dollar held tight after weekend comments from Federal Reserve Governor Christopher Waller, who said the central bank still has “a way to go” with interest rate hikes.

“This isn’t going to end in the next bout or two,” he said.

The comments echoed this month’s hawkish remarks from Fed Chairman Jerome Powell and reinforcement from other colleagues who also reaffirmed that rate hikes are far from over.

Some Trending Individual Stocks on Yahoo Finance Monday:

  • Tyson Foods (TSN): The beef and poultry producer reported disappointing-than-expected quarterly earnings, while sales rose above expectations as the high inflationary environment weighs on margins.

  • AB Group Oats (OTLY): The Swedish producer of oat-based dairy products reported higher-than-expected, lower-than-expected third-quarter loss and revenue.

  • AMC Entertainment Holdings, Inc. (AMC): AMC CEO Adam Aron told Yahoo Finance Live Thursday that the company will still accept cryptocurrencies, despite the collapse of FTX. The stock has dropped more than 72% this year.

  • SNDL Inc. (SNDL): The The liquor and cannabis retailer posted a loss in the third quarter, compared to the quarter’s profit a year ago.

  • Amazon (AMZN): Amazon plans to lay off around 10,000 employees in what would be the largest reduction in the company’s history, according to reports. Mass layoffs could begin as early as this week and will focus on Amazon’s device organization, retail division, and human resources department. The move also follows Facebook’s parent company Meta (META), Twitter and other tech companies that fired thousands of employees this month. Amazon shares fell more than 2% on Monday.

  • Hasbro (HAS): Shares of Hasbro fell after Bank of America analysts downgraded the stock from buy to underperformance. Concern claimed that the company was “destroying the long-term value” of its “Magic: The Gathering” card game.

Walmart (WMT), Target (TGT), and The Home Depot (HD) are among the top companies to unveil third-quarter financials this week.

Data from FactSet Research shows that 91% of companies in the S&P 500 reported third-quarter earnings as of Friday, with 69% reporting above average earnings per share, below the five-year average of 77%. who beat.

Another round of economic data is also on the Wall Street plate, including the monthly retail sales report released Wednesday. Economists polled by Bloomberg predicted a 1% increase for October after spending was unexpectedly flat in September as consumers pulled out of high-priced items due to high inflation and rising interest rates.

Wall Street strategists have also begun publishing their outlook for 2023, with Mike Wilson, Morgan Stanley’s chief US equity strategist, seeing more tough times.

“Although its base price target for year-end 2023 of 3,900 is roughly in line with where the market is currently trading, it will not be a smooth ride,” Wilson-led strategists wrote in. ” 2023 US Equities Outlook: The Road Not Taken “Note. “After what remains of this ongoing tactical rally, [Wilson] sees the S&P 500 discount the ’23 earnings risk in Q123 via a price low of ~ 3,000-3,300 “.

Elsewhere, President Joe Biden met with Chinese leader Xi Jinping on Monday as the United States attempts a stronger alliance with nations that can help discourage China from taking military action against Taiwan.

Meanwhile, the cryptocurrency world has continued to see a rapidly changing sequence of events. The collapse of FTX International threatened losses for both large and small investors, with FTX filing for bankruptcy on Friday in a staggering fall for a crypto empire. Relapses continued over the weekend. FTX probed a potential hack and asked customers to stay off the website, while cryptocurrency exchange Crypto.com sent $ 405 million to the wrong recipient. Bitcoin was down 0.7% to $ 16,246.64 by the end of US trading on Monday due to growing FTX problems.

Dani Romero is a Yahoo Finance journalist. Follow her on Twitter @daniromerotv

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