US stocks retreated from historic highs on Friday after disappointing retail sales data wobbled its confidence.
The S&P 500 closed 0.1% lower at 2,184 - and little changed over the week, despite a record high mustered alongside the Dow Jones Industrial Average and the Nasdaq Composite in a rare trio on Thursday. The last time they managed that feat was in 1999.
The Dow Jones Industrial Average slid 0.2% but was up 0.2% for the week. Meanwhile, the Nasdaq Composite eked out a modest gain on the day and was up 0.2% for the week.
Although oil prices had their best week since April, and the US oil benchmark West Texas Intermediate closed 2.8% higher on Friday at $44.69, it was not enough to counter-balance the effect of glum US retail sales data.
The July tally saw retail sales unchanged. Economists had expected a rise.
The S&P Midcap 400 closed down 0.2% at 1,557 and the S&P Smallcap 600 was off 0.1% at 744.
Midsession
US stocks were soft at midsession on Friday, unable to come up for air let alone build on record highs the previous day, after markets were roiled by a surprise flat reading for retail sales.
Analysts had penned in growth but July US retail sales came in flat. That took the shine off the market and put paid to chances of another record highs session for the S&P500, Dow Jones and Nasdaq achieved on Thursday.
Meanwhile, US producer prices, an early indicator of inflationary pressures in the economy, fell the most in 10 months in July on the back of a decline in costs of food, petrol and clothing. The data are seen as shelving a rate hike until 2017. Read more
Even higher oil prices were unable to get the S&P 500, the market bellwether, over the line for more than a short spell – 15 minutes to be specific – at midmorning in New York.
The S&P 500 was down 0.3% at 2,180. Top decliner was Transocean Ltd (NYSE:RIG) down 4.1% to $9.95. The company has had a rocky week after British authorities launched a probe midweek into how a Transocean oil rig ran aground in Scotland on Monday, with 280 metric tons of diesel aboard, after rough weather caused the rig to disconnect from a tugboat.
Meanwhile, the S&P Midcap 400 was down 0.3% to 1,554 led by United States Steel Corp (NYSE:X) down 6.75% to $21.15 but without fresh news.
The S&P Smallcap 600 was down 0.5% to $741 ans led by First Nbc Bank Holdings (NASDAQ:FNBC) after one investor, HoldCo Asset Management sent a letter to FNBC demanding answers relating to deferred tax assets and a possible need for a significant capital raise for the firm.
Pre-Open
Worse-than-expected economic stats have spoiled Wall Street’s celebrations following Thursday’s record-breaking close.
Equity futures pointed lower ahead of Friday’s opening bell after news that US retail sales for July came in flat, against expectations for growth.
The Dow Jones was seen nearly 20 points lower at around 9:00am in New York, while the S&P 500 and Nasdaq were also indicating early declines.
On Thursday all three marked new highs, setting a new record.
The Dow Jones closed 117 points, 0.64%, higher at 18,613 while the S&P 500 and Nasdaq added just over 0.45% to end the day at 2,185 and 5,228 respectively.
A rally in oil prices was among the catalyst in Wall Street’s record close, and early on Friday crude futures stayed steady.
WTI crude futures edged slightly higher in early deals, changing hands at around US$43.50 per barrel.