Stocks Fade by Noon on Heightened Recession Fears
August 22,2019 12:12 PM EST
Stocks were lower on Thursday, giving up earlier gains as fears of an economic recession built up ahead of a key speech from Federal Reserve Chairman Jerome Powell.
The Dow Jones Industrial Average had faded to Wednesday''s closing figure of 26,202.28,
The S&P 500 gave back 3.64 points to 2,920.79
The NASDAQ faded 40.89 points to 7,979.32
Weak U.S. manufacturing data added to worries of a recession. IHS Markit said manufacturing activity in the U.S. contracted this month for the first time in nearly 10 years.
Nordstrom shares jumped more than 10% after the retailer reported quarterly earnings and revenue that topped analyst expectations. The company cited "inventory and expense discipline" for the strong results.
Dick''s Sporting Goods traded more than 4% higher on better-than-expected results for the previous quarter. Comparable-store sales, a key metric for retailers, topped analyst expectations. The company also raised its full-year forecast.
The results from Nordstrom and Dick''s add to a strong batch of retail earnings. On Wednesday, Target and Lowe''s surged after releasing corporate earnings results that topped estimates. Those results lifted sentiment across the market and sent the Dow up more than 200 points.
Philadelphia Fed President Patrick Harker and Dallas Fed President Robert Kaplan are both set to comment on the world''s largest economy later in the day at an annual central banking symposium in Jackson Hole, Wyoming.
But the summit''s main event is set for Friday, when Fed Chairman Jerome Powell is scheduled to deliver a speech that traders will parse through for clues on future monetary policy.
The Fed cut interest rates by 25 basis points in July. Experts opine market expectations for another rate cut in September are at 93.5%
Prices for the benchmark 10-year U.S. Treasury fell back, raising yields to 1.60% from Wednesday''s 1.58%. Treasury prices and yields move in opposite directions
Oil prices slumped 80 cents to $54.38 U.S. a barrel.
Gold prices slid $5.50 to $1,510.20 U.S. an ounce.
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