Snowflake Stock – U.S. Stocks Climb After Retail Sales Fall Short
U.S. stocks rallied on Friday, extending a rebound from a selloff early this week, after April retail sales and consumer-confidence data came in below forecasts.
However, all three benchmarks were down for the week. The Dow was down 1.1% for the week, the S&P 500 was off 1.4% and the Nasdaq was 2.3% lower—its fourth-straight weekly loss.
The Census Bureau on Friday reported that retail sales were flat in April compared to those in March. March’s blowout numbers, driven in part by government stimulus, were revised higher to a 10.7% rise. Excluding volatile auto and fuel costs, retail sales were down 0.8% in April from the month before. The latest reading on consumer confidence from the University of Michigan also came in lower than expected, with a reading of 82.8 compared with forecasts of 90.
In Asia, Tokyo’s Nikkei 225 climbed 2.3% while Hong Kong’s Hang Seng rose 1.1%. The Shanghai Composite advanced 1.8%, and in Singapore the FTSE STI fell 2.2%. The Stoxx Europe 600 climbed 1.2%, while the CAC 40 in Paris was 1.5% higher and Frankfurt’s DAX gained 1.4%.
Wall Street continued to rebound from a selloff earlier this week that was caused in part by inflation fears. The
declined nearly 4% from Monday through Wednesday as investors fretted over inflation, after the Consumer price Index for April rose 0.8% to match the biggest monthly increase since 2009.
But there was a turnaround in U.S. equities on Thursday, as the market shrugged off concerns, with Asian and European stocks following suit on Friday. Singaporean stocks fell after the city-state imposed strict new rules to contain the spread of Covid-19 cases.
The gains extended into Friday, when retail sales figures helped relieve some fears that stimulus would have a lasting effect on spending and inflation. Treasury yields ticked lower after the report as well, and the 10-year yield was down three basis points, or hundredths of a percentage point, to 1.64%.
“We’re operating in a through-the-looking-glass world where seemingly bad news is taken positively by the markets on the basis it means central banks won’t pull back on the stimulus front or put up rates,” said Russ Mould, an analyst at AJ Bell. At the same time, however, the University of Michigan’s survey indicated that consumers expected higher inflation and were concerned about the prices of homes, vehicles and durable goods.
On Thursday, Federal Reserve officials reassured markets that the central bank wouldn’t raise rates soon. “Expectations for future rate hikes moved down marginally from where they were the previous day,” noted Jim Reid, a strategist at Deutsche Bank.
(ticker: DIS) stock fell 2.6% despite reporting a profit of 79 cents a share, beating forecasts for 27 cents a share, on sales of $15.61 billion, below expectations for $15.8 billion. Disney+ disappointed.
(ABNB) stock climbed 4% after reporting a loss of $1.95 a share, missing forecasts for a loss of $1.05, on sales of $887 million, above expectations for $717 million.
(DASH) stock rose 22.2% after reporting adjusted earnings before interest, tax, depreciation and amortization of $43 million, beating Wall Street’s forecasts for $23 million, on sales of $1 billion, above expectations for $993 million.
(SNOW) stock gained 11.6% after getting upgraded to Buy from Neutral at Goldman Sachs.
(SAVE) stock gained 6% after getting upgraded to Peer Perform from Underperform at Wolfe Research.
Write to Alexandra Scaggs at [email protected]