From Nasdaq: 2024-11-15 12:20:11

The S&P 500, Dow Jones, and Nasdaq 100 are all down today, extending losses from Thursday. Hawkish Fed comments have pushed bond yields up to 4-1/2 month highs, reducing chances of a rate cut next month. US economic data showed stronger retail sales and manufacturing, adding to pressure on stocks.

US retail sales rose 0.4% in Oct, beating expectations. Sep sales were also revised higher. The Nov Empire manufacturing survey reached a 2-3/4 year high. Oct import prices ex-petroleum rose 0.2%. Oct manufacturing production fell 0.5%. 85% of S&P 500 companies exceeded Q3 earnings estimates.

Markets now see a 55% chance of a 25 bp rate cut at the December FOMC meeting. Overseas markets are mixed, with the Euro Stoxx 50 and China’s Shanghai Composite falling. US 10-year T-notes are down, with yields rising to a 4-1/2 month high. European bond yields are also higher.

Swaps predict a 100% chance of a 25 bp ECB rate cut in December. Applied Materials leads S&P 500 and Nasdaq 100 losers, dragging chip makers down. Vaccine makers are falling after a skeptic was appointed to lead the Department of Health. Pfizer, Halozyme Therapeutics, Ulta Beauty, and Advanced Auto Parts are also down.

Palantir leads S&P 500 gainers, while Walt Disney, Domino’s Pizza, and Pool Corp also see gains. Alcoa jumps after aluminum prices rise. Earnings reports for 11/15 include Actinium Pharmaceuticals, Compass Minerals International, and Spectrum Brands Holdings.



Read more at Nasdaq: Stocks Retreat as Bond Yields Climb on a Hawkish Fed