The major stock market indexes closed down to end the trading day, as investors may be concerned about the mixed November wholesale inflation numbers. The Dow Jones Industrial Average showed its worst week since September.
Indexes dropped since midday highs and closed at the lows of the day. The S&P 500 and Nasdaq slipped 0.7%. The Dow Jones dropped 0.9%. The Russell 2000 small-cap index underperformed the other major indexes, down 1.2%.
All major indexes were down for the week, with the S&P 500 down 3.2%, the Nasdaq shedding 3.7% and the Dow losing 2.7%. The Russell 2000 small-cap showed the greatest losses, down 5%.
The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF (QQQ) lost 0.6%. Volume on the NYSE and Nasdaq was lower vs. the same time on Thursday.
Crude oil was unchanged at $71.51 per barrel. The Energy Select Sector SPDR ETF (XLE) dropped 2.4%.
Natural gas popped 6%. It is trading above $6 per million British thermal units.
After the inflation data, the 10-year Treasury note yield added 9 basis points to 3.58%.
European markets were up, with the German DAX up 0.7% and the Paris CAC 40 gaining 0.5%. The London FTSE 100 added 0.1% to close out the trading week.
Odds for a 50-basis-point hike at the mid-December Fed meeting stand at 77%, while 23% are looking for a 75-basis-point hike, according to the CME FedWatch Tool.
PPI Up But Not Alarming
The November producer price index rose 0.3% vs. the 0.2% consensus estimate, to an annual 7.4% rate vs. 7.2% expected. But that was down from the revised 8.1% rise in October. The latest data may not be dramatic enough to influence the Fed’s policymaking decisions.
Investors will be looking to Tuesday’s consumer price index as the last piece of inflation data the Fed will get before its final 2022 meeting Wednesday.
The December preliminary University of Michigan Consumer sentiment number came in at a bullish 59.1 vs. the 56.8 consensus estimate. The preliminary metric measures results from 420 U.S. households on their current economic attitudes and spending, and expectations for the future.
Medical Stock Gives Back Thursday’s Gains; Streaming Stock Jumps
DocuSign (DOCU), the electronic signature company, popped 12.4% after reporting better-than expected Q3 EPS and sales numbers, and robust fourth-quarter guidance. However, the stock remains depressed.
Chipmaker Broadcom (AVGO) gapped up 2.6% after reporting better-than-expected fiscal Q4 EPS and sales numbers. It also gave Q1 sales guidance slightly higher than analysts’ expectations.
Broadcom CFO Kirsten Spears said the company will resume its share repurchase program for the remaining $13 billion, and will be increasing the quarterly dividend 12% to $4.60 per share for fiscal 2023.
Netflix (NFLX) jumped 3.1% after Wells Fargo upgraded the stock to overweight from equal weight and raised its price target to 400 from 300.
Online pet supplies company Chewy (CHWY) popped 4% after reporting a beat on Q3 top and bottom lines. It also raised its fiscal 2022 sales guidance. Gross margin rose 200 basis points over the same quarter the prior year. The stock is nearing the 45.83 buy point of a cup-with-handle base.
Dexcom (DXCM) gave back 5.1% after yesterday’s breakout, on news that the U.S. Food and Drug Administration cleared its G7 continuous glucose monitor for diabetics. Dexcom is one of the S&P 500’s big losers today after being a top gainer yesterday.
Stock Market Today: Lululemon Dropped Double Digits
The Innovator IBD 50 ETF (FFTY) trimmed 2%, faring worse than the major stock market indexes.
Singapore-based manufacturing solutions company Flex (FLEX) was up 0.9% and is extended from the 19.73 buy point of a cup base.
Arista Networks (ANET) reversed course, down 0.2% but met resistance at its 21-day exponential moving average.
Athletic apparel retailer Lululemon (LULU) dropped 12.9% in heavy volume after reporting mixed Q3 results, and increasing inventories, late Thursday.
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