U.S. stocks fell on Thursday afternoon as new inflation data came in cooler than expected but regional banking concerns continued to weigh on markets.
The S&P 500 (^GSPC) was down 0.42% at 2pm ET., while the Dow Jones Industrial Average (^DJI) shed 305 points, or 0.91%. The technology-heavy Nasdaq Composite (^IXIC) was mostly flat.
Regional bank PacWest's stock slumped roughly 22% after the company disclosed in an SEC filing its deposits fell 9.5% in the first week of May.
Shares of Disney (DIS) sank more than 8% after reporting earnings that came in slightly weaker than analysts had hoped on Wednesday night. The media and entertainment conglomerate's price increases for Disney+ helped offset a lower-than-expected subscriber number. The report comes as Disney executes a broad restructuring plan amid an ongoing battle with Florida Gov. Ron DeSantis.
Elsewhere in earnings, shares of Robinhood (HOOD) rose 5% as the company reported better-than-expected revenue in the first quarter following the closing bell on Wednesday. The financial services platform also announced it will be launching 24-hour trading services for certain securities.
Several companies reported earnings prior to the opening bell on Thursday, including Sonos (SONO). The technology equipment maker that makes consumer products like bluetooth speakers cut its full-year guidance for revenue and adjusted EBITDA amid "softening consumer demand," according to Sonos CEO Patrick Spence. Shares tanked 23%, the largest fall in nine months.
Peloton (PTON) stock also dropped on Thursday as the fitness company recalled more than two million bikes. Shares were down more than 8% on the news.
Producer price increases for April came in cooler than economists had expected on Thursday morning. Prices rose 0.2% on a monthly basis and 2.3% on a yearly basis. Economists had expected producer prices to rise 0.3% in April on a monthly basis and 2.5% on a yearly basis, per Bloomberg consensus data. In March, producer prices slipped 0.5% on a monthly basis and rose 2.7% on a yearly basis.
The print came after Wednesday's Consumer Price Index report showed prices rose at their slowest annual pace in two years in April, according to the latest data from the Bureau of Labor Statistics. After pricing in a roughly 78% probability of a pause prior to the CPI release, markets are now pricing a 93% chance of a rate-hike pause in June, according to the CME Fed Watch tool.
"This report should keep the Fed comfortable with a hold in June," Bank of America's team of economists wrote in a note on Wednesday. "However, note that we have one more jobs report and one more inflation print before the June meeting.”
On the labor front, initial jobless claims for the week ending May 6 exceeded expectations with 246,000 claims. Expectations were for 245,000, according to Bloomberg consensus data.
Josh is a reporter for Yahoo Finance.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
"stock" - Google News
May 12, 2023 at 01:06AM
https://ift.tt/9I2tE8s
Stocks slip as investors weigh inflation data, regional bank turmoil: Stock market news today - Yahoo Finance
"stock" - Google News
https://ift.tt/NbwpzFo
https://ift.tt/IMGtviJ
Bagikan Berita Ini
0 Response to "Stocks slip as investors weigh inflation data, regional bank turmoil: Stock market news today - Yahoo Finance"
Post a Comment