Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average tumbled on Wednesday, the fourth straight day of triple-digit losses for the blue-chip index. Apple Inc. (AAPL) and Goldman Sachs Group Inc. (GS) were the Dow's leading laggards.
- Macy's Inc. (M) fell 7% even after the retailer posted stronger-than-expected third-quarter earnings and raised its full-year profit guidance.
- Canopy Growth Corp. (CGC) fell 12% after it reported a fiscal second-quarter loss wider than a year earlier, and revenue missed estimates.
Wall Street Overview
Stocks lost momentum on Wednesday, Nov. 14, after rising earlier following data that showed U.S. consumer prices on a monthly and yearly basis matched economists' expectations.
The Dow Jones Industrial Average fell 206 points, or 0.8%, to 25,081, the S&P 500 tumbled 0.8%, and the Nasdaq slid 0.9%. Leading the Dow lower were Apple Inc. (AAPL) , which slid into bear market territory, and Goldman Sachs Group Inc. (GS) , which fell 1%. Travelers, the insurance company with significant exposure to liabilities stemming from the California wildfires, fell 3.4%, at one point the leading decliner among Dow stocks.
The Consumer Price Index for October rose 0.3%, matching economists' estimates. Core CPI rose 0.2%. Consumer prices rose 2.5% year over year in October, also meeting forecasts. Core CPI on an annual basis fell to 2.1% from 2.2%.
Inflation at the consumer level is closely monitored by the Federal Reserve, which is widely expected to lift interest rates for a fourth time in 2018 when it meets in December.
"With inflation generally stable at around 2% on a core basis, there are no particular policy implications from (Wednesday's) number, and I would not expect a strong market reaction,' said Eric Winograd, AB's senior economist. "The Fed is still highly likely to raise rates next month and to continue doing so at quarterly intervals next year."
Oil prices rebounded sharply Wednesday but were coming off a record 12-day decline. Crude slumped the most in three years on Tuesday following a bigger-than-expected buildup in U.S. oil stockpiles and data from the Energy Information Administration that suggested shale oil production could rise to as high as 8 million barrels a day next month. Crude oil prices on Tuesday plunged more than 7% to $55 a barrel, the lowest since December 2017.
West Texas Intermediate crude rose 0.7% on Wednesday to $56.10 a barrel.
Macy's Inc. (M) earned an adjusted 27 cents a share in the third quarter on revenue of $5.404 billion. Analysts surveyed by FactSet expected Macy's to post earnings of 15 cents a share on revenue of $5.401 billion. Macy's also raised its full-year profit guidance, as same-store sales growth continued to point to a robust holiday shopping season for the retailer.
The stock turned lower on Wednesday, falling 7%.
Cisco Systems Inc. (CSCO) is expected to report earnings after the closing bell on Wednesday.
Boeing Co. (BA) slipped 1.4% after the Federal Aviation Administration said it launched a review of the safety analyses the aerospace giant has performed over the years - and what information it distributed to airlines - regarding potential hazards associated with a new automated flight-control system introduced on the latest versions of the 737 Max aircraft, The Wall Street Journal reported.
The review follows a report in the Journal on Tuesday that said the aerospace giant withheld information about potential hazards connected with the new flight-control feature that is suspected of playing a role in last month's fatal Lion Air jet crash in Indonesia. The Lion Air jet crashed into the Java Sea after taking off from Jakarta, killing all 189 on board.
The FAA denied it launched a new probe of Boeing's safety analyses, Reuters reported.
"The FAA is not doing a safety probe separate from the ongoing Lion Air accident investigation of which we, the NTSB (National Transportation Safety Board) and Indonesian officials are a part," the agency said in an emailed statement to Reuters.
Tilray Inc. (TLRY) fell 8% on Wednesday after the Canadian cannabis company's third-quarter revenue came in slightly below analysts' expectations.
Canopy Growth Corp. (CGC) , another cannabis company based in Canada, declined 11% after it reported a wider fiscal second-quarter loss from a year earlier and a 33% jump in revenue that, however, came in below forecasts.
Snap Inc. (SNAP) fell 3.4% to $6.48 after the social media app said it has been subpoenaed by the U.S. Justice Department and Securities and Exchange Commission for information about its initial public offering in March 2017.
Snap said in a statement to Reuters it has responded to the government subpoenas and other requests for information.
Snap's IPO price was $17 a share.