This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Slip on Smaller-Than-Expected Rise in Consumer Spending; GoPro Surges

NEW YORK (TheStreet) -- Benchmark U.S. stock indices were lower Thursday after a smaller-than-expected rise in consumer spending and an increase in a key inflation gauge.

The Dow Jones Industrial Average was down 0.4% to 16,798.38. The S&P 500 fell 0.4% to 1,951.50. The Nasdaq declined 0.4% to 4,362.22.

As expected, personal income increased by 0.4% in May. Personal spending ticked up a less-than-expected 0.2% vs. the average economist's estimate of 0.4%. The reading, however, rose from April's flat reading.

The core PCE price index rose by an in-line 0.2% month over month, pushing the year-over-year index to 1.5%. These increases arrive after the recent acceleration in the Consumer Price Index.


WATCH: More market update videos on TheStreet TV | More videos from Debra Borchardt

As inflation concerns pick up, Peter Cardillo, chief market economist at Rockwell Global Capital, acknowledged that inflationary pressure at the producer level has been, in some cases, passed on to the consumer. However, wage inflation remains dormant.

"We reiterate that until higher labor costs become a problem, the chances of the Fed's inflation target being met are still slim," Cardillo said in a note.

Jobless claims dipped by 2,000 in the week of June 21 to 312,000, vs. the consensus estimate of 310,000.

Individual companies in the spotlight Thursday include Barclays (BCS), GoPro (GPRO), Allergan (AGN), Bed Bath & Beyond (BBBY), Nike (NKE), General Motors (GM) and Alcoa (AA - Get Report).

Alcoa rose 1.9% to $14.82 after it signed an agreement to buy aerospace jet engine components company Firth Rixson from Oak Hill Capital Partners for $2.85 billion in cash and stock. Barclays committed fraud in the sale and marketing of a "dark pool," an alternative trading platform used for large stock sales, according to charges brought by New York Attorney General Eric Schneiderman. Shares were diving 6.5% to $14.69. Hedge fund Paulson & Co. has amassed a large stake in Allergan of more than 6 million shares and supports a deal between the Botox maker and Valeant Pharmaceuticals (VRX), people familiar with the matter told Reuters. Allergan shares rose 0.2%. General Motors told dealers in the U.S. and Canada to stop selling 2013 and 2014 Chevrolet Cruze sedans because of a potential defect in air bags made by air bag supplier Takata. Shares were down 1.7% to $36.47.

Bed Bath & Beyond reported fiscal first-quarter earnings that were short of analysts' expectations. Shares were tumbling 9.2% to $55.52.

Shares of GoPro, the maker of wearable sports cameras, rose 30.3% to $31.27 after it opened for trading Thursday. Late Wednesday, GoPro sold 17.8 million shares at $24 each in its IPO.

Wall Street expects sneaker and athletic apparel maker Nike to post fourth-quarter earnings on Thursday of 75 cents a share on revenue of $7.34 billion.

Benchmark U.S. stock indices gained ground on Wednesday, taking soft domestic economic data in stride.

Cardillo wrote that while the outlook remains positive for stocks, the chances of a summer dull trading range is likely to supersede positive second-quarter earnings in a few weeks.

-- By Andrea Tse in New York

June 26 Premarket Briefing: 10 Things You Should Know

European Stocks Mixed, Asian Stocks Rise Ahead of U.S. Spending Data

Markets Resilient Against Geopolitical Conflict, Soft Domestic Data

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AA $11.03 0.00%
GPRO $50.94 0.00%
AAPL $126.00 0.00%
FB $87.55 0.00%
GOOG $522.86 0.00%

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs