UNITED STATES NEWS

Stock market today: Markets bounce back modestly with focus still on retail sector, consumers

May 17, 2023, 12:05 AM

Wall Street bounced back modestly early Wednesday with more big retailers reporting sales and profit pointing to an American consumer that’s reigning in spending under the weight of ongoing inflation and anxiety about a possible recession.

Futures for the Dow Jones Industrial Average rose 0.4% and the S&P 500 ticked up 0.3%.

Target shares bounced around early after the Minneapolis retail giant reported another quarterly profit decline and issued a cautious sales and profit outlook. Target said it is dealing with higher costs, including rising theft, and consumers who have become more cautious about spending.

Home Depot on Tuesday projected its first decline in annual revenue since 2009, dragging broader markets into negative territory for the day. The nation’s largest home improvement retailer cut its profit and sales expectations for the entire year.

Walmart, another bellwether for the retail sector and indicator of broader consumer health, reports its results before the bell Thursday.

Although the government on Tuesday reported that retail sales rose in April after declines the previous two months, data showed that higher prices have consumers trading down to cheaper brands and pulling back on purchases of non-essential goods, reversing pandemic trends.

Thanks largely to a strong job market, Americans have remained resilient in their spending even with signs of weakness elsewhere in the economy. However, most economists forecast the job market to weaken in the second half of the year, following 10 straight interest rate increases by the Federal Reserve meant to stifle inflation.

In Europe at midday, Germany’s DAX added 0.4%, while Britain’s FTSE 100 inched down 0.1% and France’s CAC 40 was unchanged.

Japan’s benchmark Nikkei 225 gained 0.8% to finish at 30,093.59. Australia’s S&P/ASX 200 dipped 0.5% to 7,199.20 after a better-than-expected wage increase report. The wage price index rose 3.7% year on year. But that could mean an interest rate hike in coming months, according to some analysts.

South Korea’s Kospi gained 0.6% to 2,494.66. Hong Kong’s Hang Seng lost 2.1% to 19,560.57, while the Shanghai Composite slipped 0.2% to 3,284.23.

Japan’s encouraging GDP data released earlier in the day showed consumption was rebounding after COVID-19-related restrictions were eased and borders opened to tourists.

Japan’s economy, the world’s third largest, grew at an annual pace of 1.6% in the quarter through March, according to the Cabinet Office. That was the strongest GDP growth pace since April-June 2022 marked a 1.1% growth. The main negative came from declining exports due to sluggish global demand.

“Sluggish external demand remains a concern over the near term,” said Harumi Taguchi, principal economist at S&P Global Market Intelligence, adding that the growth may taper off.

“As real compensation of employees declined at a faster pace, weaker purchasing power will continue to make consumers selective,” she said.

In energy trading, benchmark U.S. crude added 18 cents to $71.04 a barrel. Brent crude, the international standard, also rose 18 cents to $75.09 a barrel.

In currency trading, the U.S. dollar edged up to 137 Japanese yen from 136.36 yen. The euro cost $1.0826, down from $1.0868.

On Tuesday, the S&P 500 lost 0.6%, with more than four out of five stocks in the index closing lower. The Dow fell 1% and the Nasdaq slipped.

___

Kageyama reported from Tokyo, Ott reported from Silver Spring, Md.

United States News

Associated Press

YouTuber who staged California plane crash gets 6 months in prison for obstructing investigation

LOS ANGELES (AP) — An influencer who staged a California plane crash to make a YouTube video of himself parachuting to safety was sentenced Monday to six months in federal prison for obstructing the investigation by destroying the wreckage, the U.S. Justice Department said Monday. Trevor Daniel Jacob, 30, an experienced pilot and skydiver, pleaded […]

25 minutes ago

Associated Press

Virginia police investigate explosion at house where officers were trying to serve a search warrant

ARLINGTON, Va. (AP) — Police in a Virginia suburb of the nation’s capital are investigating an explosion at a residence where officers were trying to serve a search warrant Monday. The Arlington County Police Department said in a statement that the suspect fired several shots inside the home and that an explosion happened. Firefighters were […]

1 hour ago

FILE - A hiring sign is displayed at a grocery store, Oct. 5, 2023, in Deerfield, Ill. Most busines...

Associated Press

Economists predict US inflation will keep cooling and the economy can avoid a recession

Most business economists think the U.S. economy could avoid a recession next year, even if the job market ends up weakening under the weight of high interest rates, according to a survey released Monday.

2 hours ago

Associated Press

Photographs capture humpback whale’s Seattle visit, breaching in waters in front of Space Needle

Seattle (AP) — Pictures released by a conservation group show a young humpback whale breaching in front of the Space Needle as it visited the waters off Seattle last week, capturing a rare display of wildlife next to a major city. The photos were also used to gauge the general health of the whale and […]

2 hours ago

FILE - President Joe Biden's son, Hunter Biden, leaves after a court appearance, July 26, 2023, in ...

Associated Press

Prosecutors push back against Hunter Biden’s move to subpoena Trump documents in gun case

WASHINGTON (AP) — Prosecutors pushed back Monday against Hunter Biden’s move to subpoena documents from Donald Trump and former Justice Department officials in the firearms case filed against the president’s son. They argued that Hunter Biden doesn’t have enough evidence to support his claims of potential political interference in the criminal investigation against him and […]

2 hours ago

(Maricopa County Sheriff's Office Photo)...

Associated Press

Treasury creates new strike force as US and China pursue crackdown on illicit fentanyl trafficking

The Treasury Department on Monday announced a new strike force to help combat illicit fentanyl trafficking as the U.S. and China step up stop efforts.

3 hours ago

Sponsored Articles

Follow @KTAR923...

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.

...

Dierdre Woodruff

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Importance of AC maintenance after Arizona’s excruciating heat wave

An air conditioning unit in Phoenix is vital to living a comfortable life inside, away from triple-digit heat.

Stock market today: Markets bounce back modestly with focus still on retail sector, consumers