US close: S&P 500 ends lower on weak CPI, fashion retailers drag
Weak readings on inflation and retail sales sent the S&P 500 to its first weekly loss in three with retailers again bearing the brunt of selling.
The Dow Jones Industrial Average fell by 0.11% to 20,896.61, alongside a dip of 0.15% for the S&P 500 while the Nasdaq Composite managed to eke out a higher close, rising 0.09% to finish at 6,121.23.
For the week, the S&P 500 lost 8.39 points after hitting a fresh record high on Wednesday, with the CBoE's VIX volatility gauge ending 1.89% lower on Friday at 10.40.
"We're ending another week with stocks at record highs and volatility at rock bottom. This week was notably good for the tech-heavy Nasdaq as Apple topped a market cap of $800bn for the first time. Things are very calm right now – and that’s typically what happens before the next panic," LCG's Jasper Lawler told clients in a note.
The worst performing industrial groups were: Heavy construction (-2.79%), Apparel retailers (-2.75%), Tires (-2.60%), Furnishing (-2.03%) and Retail REITs (-2.02%).
Weaker-than-expected US inflation data at the end of the week sent the yield on the benchmark 10-year US Treasury note diving by seven basis points to 2.33%.
The rate of gains in US consumer prices slipped from 2.4% year-on-year in March to 2.2% for April (consensus: 2.3%), according to the Bureau of Labor Statistics.
Core CPI also came in shy of forecasts at 1.9% on the year, following a rise of 2.0% in the prior month (consensus: 2.0%).
After Friday's lower-than-expected CPI print, analysts at Barclays reaffirmed their prediction that the US Federal Reserve would go ahead with a 25 basis point rate hike in June.
"Today’s data do not alter our view that the Federal reserve will tighten policy in June. Labor markets remain strong, and communications from FOMC members have been clear that they remain focused on a tightening policy path. We think softer-than-expected CPI prints for March and April are unlikely to deter the FOMC from action," said Barclays's Blerina Uruci.
Indeed, for now at least Fed funds futures were still pricing 78.5% odds a 25 basis point June interest rate hike by the Fed.
Nonetheless, speaking earlier during the same session the president of the Federal Reserve bank of Chicago, Charles Evans, reportedly indicated just one more interest rate hike in 2017 was a possible scenario.
In the corporate space, shares in JC Penney dived after the fashion retailer posted weaker than expected first quarter sales of $2.7bn. It was also the most heavily traded issue on the NYSE.
Department store operator Nordstroms lost 10.84% despite beating analysts forecasts for bottom line growth in the first quarter, albeit amid a 0.8% drop in like for likes over those three months.
Eli Lilly shares were lower even after it said a late-stage study of a migraine treatment met its primary goals.
International petroleum service company Tidewater tanked after it announced a bankruptcy plan.
Dow Jones - Risers
Apple Inc. (AAPL) $156.10 1.40%
McDonald's Corp. (MCD) $145.36 0.80%
Visa Inc. (V) $92.73 0.68%
Home Depot Inc. (HD) $156.92 0.46%
E.I. du Pont de Nemours and Co. (DD) $79.30 0.43%
Johnson & Johnson (JNJ) $123.64 0.36%
Walt Disney Co. (DIS) $109.69 0.10%
Travelers Company Inc. (TRV) $120.59 0.04%
Procter & Gamble Co. (PG) $86.19 0.02%
Exxon Mobil Corp. (XOM) $82.55 -0.07%
Dow Jones - Fallers
General Electric Co. (GE) $28.27 -2.08%
Merck & Co. Inc. (MRK) $63.57 -1.33%
Unitedhealth Group Inc. (UNH) $171.81 -0.87%
Goldman Sachs Group Inc. (GS) $222.82 -0.86%
American Express Co. (AXP) $77.49 -0.55%
Wal-Mart Stores Inc. (WMT) $75.71 -0.55%
Cisco Systems Inc. (CSCO) $33.45 -0.54%
Intel Corp. (INTC) $35.53 -0.45%
Verizon Communications Inc. (VZ) $45.84 -0.39%
Boeing Co. (BA) $183.25 -0.38%
S&P 500 - Risers
Wynn Resorts Ltd. (WYNN) $125.29 2.50%
Southwestern Energy Co. (SWN) $7.66 2.41%
Broadcom Limited (AVGO) $235.96 2.11%
Alcoa Corporation (AA) $31.79 2.02%
Exelon Corp. (EXC) $34.13 1.88%
Mallinckrodt Plc Ordinary Shares (MNK) $46.79 1.56%
Salesforce.Com Inc. (CRM) $89.04 1.52%
Amazon.Com Inc. (AMZN) $961.35 1.45%
Netflix Inc. (NFLX) $160.81 1.43%
Apple Inc. (AAPL) $156.10 1.40%
S&P 500 - Fallers
Nordstrom Inc. (JWN) $41.20 -10.84%
Urban Outfitters Inc. (URBN) $21.61 -6.08%
Diamond Offshore Drilling Inc. (DO) $14.29 -4.41%
Transocean Ltd. (RIG) $10.62 -4.15%
Hanesbrands Inc. (HBI) $21.44 -3.77%
Ralph Lauren Corp (RL) $76.40 -3.57%
Mosaic Company (MOS) $22.91 -3.33%
Quanta Services Inc. (PWR) $32.49 -3.33%
Jacobs Engineering Group Inc. (JEC) $52.75 -3.32%
Federal Realty Inv Trust (FRT) $125.43 -3.31%
Nasdaq 100 - Risers
Wynn Resorts Ltd. (WYNN) $125.29 2.50%
Vodafone Group Plc ADS (VOD) $27.58 2.38%
Ctrip.Com International Ltd. Ads (CTRP) $55.33 2.18%
Broadcom Limited (AVGO) $235.96 2.11%
JD.com, Inc. (JD) $40.56 2.01%
Check Point Software Technologies Ltd. (CHKP) $107.60 1.78%
Amazon.Com Inc. (AMZN) $961.35 1.45%
Netflix Inc. (NFLX) $160.81 1.43%
Apple Inc. (AAPL) $156.10 1.40%
Seagate Technology Plc (STX) $43.04 1.32%
Nasdaq 100 - Fallers
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $51.50 -2.74%
Ross Stores Inc. (ROST) $63.49 -2.67%
Hologic Inc. (HOLX) $42.63 -2.27%
Twenty-First Century Fox Inc Class A (FOXA) $27.94 -2.03%
NetEase Inc. Ads (NTES) $271.29 -1.98%
Express Scripts Holding Co (ESRX) $59.63 -1.70%
Dentsply International Inc. (XRAY) $61.65 -1.67%
PACCAR Inc. (PCAR) $63.37 -1.55%
American Airlines Group (AAL) $45.83 -1.53%
Twenty-First Century Fox Inc Class B (FOX) $27.90 -1.48%