S&P ends slightly lower as higher Treasury yields offsets robust retail data

  • Retail sales rise unexpectedly in August
  • Crude prices retreat, putting pressure on energy stocks
  • Ford announces increase in production of electric pickups
  • Indices: Dow down 0.18%, S&P down 0.16%, Nasdaq up 0.13%

NEW YORK, Sept. 16 (Reuters) – The S&P 500 (.SPX) ended slightly lower on Thursday, crushing late trading losses after surprisingly strong retail sales data underscored the strength of the US economic recovery.

All three major indices spent much of the day in negative territory as rising US Treasury yields put pressure on market-leading tech stocks and the rising dollar weighed on exporters. Read more

Amazon.com Inc (AMZN.O), supported by strong online sales in the Commerce Department report, helped push the Nasdaq into positive territory.

“Looking at today we have clearly had positive news from retail sales and it looks like the massive downturn in the economy is not materializing as many people expected,” said Ryan Detrick, Senior Strategist markets at LPL Financial in Charlotte, North Carolina. .

“It’s a good reminder that the economy always takes two steps forward for every step back, even amid COVID concerns,” Detrick added.

Economically sensitive transport (.DJT) and electronic chips (.SOX) were among the most successful.

Data released before the opening bell showed an unexpected increase in retail sales as shoppers weathered Hurricane Ida and the COVID Delta variant, evidence of consumer resilience, which contributes around 70% to American economic growth. Read more

“Once again, this shows that the American consumer continues to spend and continues to help this economy grow,” said Detrick.

A sign indicating Wall Street is visible in front of the New York Stock Exchange (NYSE) in New York, New York, United States, July 19, 2021. REUTERS / Andrew Kelly / File Photo

The Dow Jones Industrial Average (.DJI) lost 63.07 points, or 0.18%, to 34,751.32; the S&P 500 (.SPX) lost 6.95 points, or 0.16%, to 4,473.75; and the Nasdaq Composite (.IXIC) added 20.40 points, or 0.13%, to 15,181.92.

Eight of the S&P 500’s top 11 sectors ended lower, with materials (.SPLRCM) suffering the largest percentage decline.

The consumer discretionary spending (.SPLRCD) sector posted the biggest gain, with Amazon.com doing the heavy lifting.

Apparel company Gap Inc (GPS.N) gained 1.6%. Online marketplace Etsy Inc (ETSY.O) and luxury accessories company Tapestry Inc (TPR.N) rose 3.1% and 1.9% respectively.

Ford Motor Co (FN) rose 1.4% after announcing plans to increase production of its F-150 electric pickup model. Read more

Falling issues outnumbered advancing ones on the NYSE by a ratio of 1.27 to 1; on the Nasdaq, a ratio of 1.06 to 1 favored advances.

The S&P 500 posted nine new 52-week highs and a new low; the Nasdaq Composite recorded 82 new highs and 94 new lows.

The volume on the US stock exchanges was 9.37 billion shares, compared to 9.44 billion on average over the last 20 trading days.

Reporting by Stephen Culp; Additional reporting by Ambar Warrick in Bengaluru; Editing by Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

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