|
The Dow slid 154.10 points or 0.4% to 44,247.83, the Nasdaq fell 49.45 points or 0.3% to 19,687.24 and the S&P 500 slipped 17.94 points or 0.3% to 6,034.91. Wall Street weakened as traders took profits ahead of the Labor Department's inflation report, expected to show a 0.2% rise in consumer prices for November, marking the fifth consecutive month of increase. The annual inflation rate is forecasted to tick up to 2.7%, while core consumer prices, excluding food and energy, are projected to rise by 0.3% and maintain an annual growth rate of 3.3%. The Federal Reserve is expected to cut rates by 25 basis points next week, with an 86.1% chance of this occurring while there's a 69.1% likelihood of rates remaining unchanged in late January. The upcoming data could influence the outlook for future rate cuts by the central bank. Computer hardware stocks moved sharply lower with the NYSE Arca Computer Hardware Index plunging by 3.8%. Semiconductor stocks were significantly weak reflected by the 2.5% slump by the Philadelphia Semiconductor Index. Housing stocks too were considerably weak dragging down the Philadelphia Housing Sector Index down by 2.1%. Homebuilder Toll Brothers (TOL) led the sector lower after reporting fiscal fourth quarter earnings and revenues but weaker than expected unadjusted homebuilding gross margin whereas airline stocks moved upwards, driving the NYSE Arca Airline Index up by 1.7%. Alaska Air Group (ALK) soared by 13.2% after raising its fourth quarter profit forecast. Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index rose by 0.5%, Hong Kong's Hang Seng Index fell by 0.5%. European stocks moved mostly lower. The French CAC 40 Index slumped by 1.1%, the U.K.'s FTSE 100 Index slid by 0.9% and the German DAX Index edged down by 0.1%. In the bond market, treasuries extended the pullback seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.2 bps to 4.22%. Powered by Capital Market - Live News
|