The Last Slice For Friday, January 14, 2022

(MarketWatch) — U.S. stock indexes were trading mixed late afternoon Friday, weighed down partly by the prospect of rising interest rates and weaker economic data that has cast some doubt on the strength of the recovery from the COVID pandemic.

  • The Dow dropped -201.81 or -0.56%
  • The S&P 500 was up +3.82 or +0.08%
  • The Nasdaq advanced +86.94 or +0.59%
  • For the week, the Nasdaq Composite was looking at a decline of 0.5%, the S&P 500 index was on pace for a 0.4% fall and the Dow was headed for a drop of around 1%.

Stocks were mixed Friday afternoon after sentiment on Wall Street appeared to be souring to end a tumultuous week of trade amid heightened anticipation for higher interest rates and concerns over the economic outlook.

Federal Reserve officials have been signaling plans to begin tightening monetary policy through rate hikes this year to help combat hot inflation.

Concerns about the near-term economic outlook and a bumpy rotation from high-flying stocks to cyclical appeared to be contributing to Friday’s volatility. 

The U.S. Department of Commerce released data Friday showing retail sales dropped 1.9% in December, exceeding the 0.1% decline forecast by economists polled by The Wall Street Journal.

Some of the sharp declines in retail sales in December may be the result of households getting an earlier jump on their holiday shopping in October due to concern over “goods shortages and shipping delays” in the pandemic, Barclays said in an economics research report Friday.

In his remarks Friday, New York Fed President Williams predicted inflation will ease from its current brisk pace. “With growth slowing and supply constraints gradually being resolved, I expect inflation to drop to around 2.5% this year,” he said. 

Federal Reserve Gov. Christopher Waller suggested in a Bloomberg TV interview earlier this week that as many as five interest-rate increases are possible in 2022, as the central bank aims to beat back rampant inflation. The policymaker said three rate hikes were a “good baseline” this year, though. 

Meanwhile, a closely followed gauge of U.S. consumer sentiment fell to 68.8 in January from 70.6 in the prior month, marking the second-lowest reading in a decade, with omicron concerns partly attributed to its drop-off.

Robert Frick, the corporate economist with Navy Federal Credit Union, said that the fall in consumer sentiment reflects the pain lower-income Americans are facing amid inflation.

In other economic data, U.S. industrial output fell 0.1% in December, after a revised 0.7% gain in the prior month, and industrial-capacity use edged down to 76.5% last month versus 76.6% in the prior month.

  • Banks including JPMorgan Chase & Co. JPM and Wells FargoWFC each reported stronger fourth-quarter earnings than forecast. Citigroup posted a decline in its quarterly profit. Citi’s shares were down 1.5%, those for Wells Fargo were up 3.2% and JPMorgan Chase’s stock was down 6.5%. 
  • Asset manager BlackRock reported that its assets under management reached $10 trillion. However, the firm’s stock was down 3.4%. 
  • Shares of paint-maker Sherwin-Williams were down 2.2% after it lowered its guidance, citing supply shortages. 
  • Tesla’s stock was in focus after its CEO, Elon Musk, said the electric-vehicle maker would accept meme asset dogecoin as payment for some merchandise. Shares of Tesla rose 0.6% while dogecoin changed hands at 18.9 cents, up about 11.2%. 
  • Shares of Google parent Alphabet were in focus after The Wall Street Journal reported that Google misled publishers and advertisers for years about the pricing and processes of its ad auctions. Alphabet’s Class A shares were up 0.6%.
  • Oil futures CL00 for West Texas Intermediate crude rose 2.1% to settle at $83.82 a barrel for a weekly gain of 6.2%.
  • Gold futures GC00 for February delivery fell 0.3% to settle at $1,816.50 an ounce. 
  • Bitcoin BTCUSD was up 1% at $43,079 and looking at a weekly gain of 3.9%, FactSet data show.

Full Loaf Hot LinkOriginal Article By: Christine Idzelis

*Click on the “Full Loaf” icon to read the full article! After you read the article come back and tell us your thoughts.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.