The Dow Jones Industrial Average fell Friday, but notched a positive week, as investors assessed a weak retail sales report that dented enthusiasm around a stronger-than-expected start to corporate earnings.
The 30-stock Dow dropped 143.22 points, or about 0.42%, to 33,886.47. The S&P 500 fell 0.21% to 4,137.64. Meanwhile, the Nasdaq Composite slid 0.35% to 12,123.47.
The Dow, however, notched its fourth-straight positive week, rising 1.2%. The S&P 500 and the Nasdaq, meanwhile, nabbed their fourth positive week in five. The broad-market index added 0.79% for the week, while the Nasdaq ticked higher by 0.29%.
Advance retail sales in March showed consumer spending fell twice as much as expected. Retail sales declined by 1% last month, more than the 0.5% drop expected by economists polled by Dow Jones, in part because consumers paid less for fuel.
“Retail sales came in weaker than expected, but a lot of the miss had to do with lower gas prices, which all things being equal is a slight positive for spending,” wrote Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
“Inflation has been coming down as gas prices have been coming down, but that can reverse in an instant, which would drive the headline numbers higher. What is more concerning is that core (which excludes food and gas prices) has been stubbornly high – and where we believe the risks to higher-rates-for-longer lie,” Zaccarelli added.
The disappointing retail sales data offset excitement around strong corporate earnings. JPMorgan Chase reported record revenue that beat analysts’ expectations, with the stock rising more than 7%. Wells Fargo shares briefly rose as much as 2.1% after the bank reported growing profits, before closing about flat. These were the first bank earnings since the collapse of Silicon Valley Bank and Signature Bank last month.
Elsewhere, UnitedHealth, which has the biggest weighting in the Dow, fell 2.7% after what Mizuho described as a “modest beat and raise.” The…
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