Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average ended slightly lower on Thursday a day after posting its biggest gains since March a day before, fueled by dovish comments on interest rates from Federal Reserve Chairman Jerome Powell.
- Deutsche Bank AG (DB) shares fell after prosecutors in Germany raided the lender's headquarters in Frankfurt as part of an ongoing probe into money laundering that has implicated several European banks over the past year.
- Abercrombie & Fitch Co. (ANF) jumped 21% after the teen retailer posted third-quarter adjusted earnings of 33 cents a share, beating estimates of 20 cents.
Wall Street Overview
Stocks ended modestly lower on Thursday, Nov. 29, following the prior session's Federal Reserve-fueled rally as investors awaited developments from this weekend's summit between Donald Trump and Chinese President Xi Jinping.
The Dow Jones Industrial Average fell 27 points, or 0.1%, to 25,339, the S&P 500 declined 0.22%, and the Nasdaq was down 0.25%.
On Wednesday, Nov. 28, the Dow gained 617 points, or 2.5%, for the index's best day since March 26, after Fed Chairman Jerome Powell appeared to reverse an earlier assessment on monetary policy, telling the Economic Club of New York that the fed funds rate was "just below" a neutral rate that would neither accelerate nor slow growth in the world's largest economy. Powell spooked markets last month by suggesting that rate was a "long way" from neutral, a view that triggered a near 10% correction in U.S. stocks and accelerated bets on faster rate hikes in 2019.
"We know that things often turn out to be quite different from even the most careful forecasts," Powell said. "Our gradual pace of raising interest rates has been an exercise in balancing risks." He added that rates, while "still low by historical standards" remain "just below the broad range of estimates of the level that would be neutral for the economy."
Wall Street also traded cautiously ahead of the planned meeting between on Saturday, Dec. 1, between Trump and Xi on the sidelines of the G-20 summit in Argentina.
Consumer spending in October rose 0.6%, the fastest pace in seven months, while incomes rose 0.5%, the largest amount in nine months, the Commerce Department said Thursday. Meanwhile, the core Personal Consumption Expenditures price index, the Fed's preferred gauge of inflation, rose 0.1% on a month-to-month basis and 1.8% annually in October
Deutsche Bank shares fell 5% on Thursday.
The Frankfurt raid is the latest turmoil for Germany's largest lender, which has lost more than half its market value since asking investors for an $8.5 billion capital increase in March 2017 following a multi-billion settlement with U.S. legal authorities linked to the mis-selling of mortgage bonds in the run-up to the global financial crisis.
No deal is imminent, the people said, but should there be one it would be big, according to the Journal. Closely held Juul was valued at $16 billion in a funding round this summer. Altria shares rose 1.8%.
Express Inc. (EXPR) fell 5% after the apparel retailer posted third-quarter earnings that beat analysts' expectations but issued a fourth-quarter profit forecast below Wall Street estimates.
Abercrombie & Fitch Co. (ANF) jumped 21% after it posted third-quarter adjusted earnings of 33 cents a share, beating estimates of 20 cents. Same-store sales in the period rose 3%; analysts were calling for same-store sales to rise 1.6%.
Dollar Tree Inc.'s (DLTR) third-quarter earnings topped estimates and the discount retailer cut its 2018 earnings and sales outlook. The stock, however, rose 6%.