US stocks retreat for third straight day on inflation woes

Be the First to Comment Read

US stocks retreat for third straight day on inflation woes

 US stocks retreat for third straight day on inflation woes
Image source: Copyright © 2021 Kalkine Media Pty Ltd.

US stocks closed in a sea of red on Thursday, January 20, as investors paused their bullish bets amid mixed signals from the economy.

The S&P 500 fell 1.10% to 4,482.73. The Dow Jones declined 0.89% to 34,715.39. The NASDAQ Composite was down 1.30% to 14,154.02, and the small-cap Russell 2000 fell 1.81% to 2,025.30.

On Thursday, the Labor Department said the weekly jobless claims rose by 55,000 to a seasonally adjusted 286,000, the highest increase since mid-October for the week ended January 15, 2022.

In a separate report, an industry body said that the existing US home sales fell by 7.1% in December year-on-year due to high prices and low inventory. However, home sales in 2021 were up 8.5% YoY to 6.12 million units, the biggest rise since 2006, according to the National Association of Realtors. 

Barring utility, all other stock segments on the S&P 500 index stayed in the negative territory. The top losers were consumer discretionary, basic materials, and the industrial sectors.

Shares of Peloton Interactive, Inc (PTON) fell more than 22% in intraday trading after media reports claimed the company is pausing its fitness equipment production amid a drop in consumer demand.

The Travelers Companies, Inc. (TRV) stock rose 3.95% after reporting quarterly results. Its net income rose to US$1.33 billion in the fourth quarter of FY2021 from US$1.31 billion a year ago.

In the utility sector, NextEra Energy Inc. (NEE) stock gained 1.59%, Duke Energy Corporation (DUK) rose 0.51%, and Dominion Energy (D) climbed 0.72%. Exelon Corporation (EXC) and American Electric Power Company Inc. (AEP) increased by 1.795 and 0.04%, respectively.

In the consumer discretionary sector, (AMZN) stock fell 1.47%, Home Depot Inc. (HD) fell 1.62%, and Nike Inc. (NKE) declined 0.35%. Lowe’s Companies Inc. (LOW) and Ford MTR Co. Del (F) were down 3.50% and 2.43%, respectively.

In the basic material sector, Linde Plc (LIN) stock fell 0.06%, Sherwin Williams Company (SHW) decreased by 2.04%, and Freeport-McMoran Inc. (FCX) was down 2.04%. Ecolab Inc. (ECL) declined 0.62%, and Newmont Corporation (NEM) fell 1.73%.

The global cryptocurrency market was up 1.92% to US$2.02 trillion, according to Bitcoin (BTC) rose 2.33% to US$42,750.52 in the last 24 hours to Thursday evening. 

On Thursday, the US Securities and Exchange Commission rejected the filings by First Trust Advisors and SkyBridge for a spot bitcoin exchange-traded fund.

Also Read: Russia to ban mining and use of cryptocurrency

Utility stocks were the only segment on the S&P 500 index to close in the green on Thursday.

Also Read: Four Springs Capital Trust (FSPR) to debut on NYSE today - know details

Barring utility, all other stock segments on the S&P 500 index closed in the red.

Also Read: Pfizer covid vaccine for kids under five on the anvil

Futures & Commodities

Gold futures declined 0.29% to US$1,837.85 per ounce. Silver futures increased by 1.09% to US$24.495 per ounce, while copper rose 1.26% to US$4.5255.

Brent oil futures decreased by 1.22% to US$87.36 per barrel and WTI crude futures were down by 1.34% to US$84.65.

Bond Market

The 30-year Treasury bond yields decreased 0.42% to 2.130, while the 10-year bond yields fell 0.09% to 1.825.

US Dollar Futures Index surged 0.36% at US$95.845.


Speak your Mind

Featured Articles