Stock Market Update

[BRIEFING.COM] It's been a lackluster day for stocks after surging yesterday. The Dow Jones Industrial Average and S&P 500, which briefly moved above its 50-day moving average (5,962), have traded above and below the unchanged mark while the Nasdaq Composite underperforms, trading 0.3% lower.

There's been a big batch of earnings and economic news to parse through, along with commentary from Fed Governor Waller and Treasury Secretary nominee Scott Bessent. On the whole, today's news flow has been supportive for equities, but losses in some influential stocks have pressured the major indices. 

Retail sales and weekly jobless claims reflected ongoing strength in the economy and labor market, Treasury Secretary nominee Scott Bessent reiterated at his confirmation hearing that the U.S. must get its fiscal house in order while also pursuing pro-growth policies, and Fed Governor Waller (FOMC voter) said he believes that there could possibly be 3-4 rate cuts this year, depending on the data. 

Treasury yields are also lower, responding to Mr. Waller's remarks. The 10-yr yield, at 4.68% earlier, sits at 4.61% now. The 2-yr yield, which is most sensitive to changes in the fed funds rate, sits at 4.23% after reaching 4.30% earlier.

Bank of America (BAC 46.04, -1.05, -2.3%) and Morgan Stanley (MS 134.01, +3.49, +2.7%) reported more strong quarterly results from the financial sector, but have garnered mixed responses. UnitedHealth (UNH 517.62, -25.79, -4.8%) also reported earnings, receiving a negative response. 

Apple (AAPL 230.49, -7.39, -3.1%), NVIDIA (NVDA 135.06, -1.15, -0.8%), and Tesla (TSLA 414.39, -13.73, -3.2%) have been influential losers in today's trade.

Reviewing today's economic data:

• December Retail Sales 0.4% (Briefing.com consensus 0.5%); Prior was revised to 0.8% from 0.7%, December Retail Sales ex-auto 0.4% (Briefing.com consensus 0.5%); Prior 0.2%
  • The key takeaway from the report is that retail sales, which are not adjusted for price changes, were more subdued than expected in December, suggesting consumers spent in a more considerate manner. Importantly, though, they remained inclined to spend.
• Weekly Initial Claims 217K (Briefing.com consensus 212K); Prior was revised to 203K from 201K, Weekly Continuing Claims 1.859 mln; Prior was revised to 1.877 mln from 1.867 mln
  • The key takeaway from the report is that there was nothing disruptive about it in terms of the market's understanding that the labor market, overall, continues to be in pretty good shape.
• January Philadelphia Fed Index 44.3 (Briefing.com consensus -6.0); Prior was revised to -10.9 from -16.4
• December Export Prices 0.3%; Prior 0.0%
• December Export Prices ex-ag. 0.3%; Prior was revised to 0.0% from 0.1%
• December Import Prices 0.1%; Prior 0.1%
• December Import Prices ex-oil 0.1%; Prior was revised to 0.1% from 0.0%
• November Business Inventories 0.1% (Briefing.com consensus 0.1%); Prior was revised to 0.0% from 0.1%
• January NAHB Housing Market Index 47 (Briefing.com consensus 45); Prior 46