Market Moves: Stocks Mixed Amid Economic Data and Tariff Remarks
Mixed Market Performance
The S&P 500 Index ($SPX) (SPY) today is up +0.25%, while the Dow Jones Industrials Index ($DOWI) (DIA) has decreased by -0.59%. The Nasdaq 100 Index ($IUXX) (QQQ) has shown resilience, increasing by +0.45%.
Corporate Gains Lift Market
Stock movements are mixed today, highlighting some positive corporate results. JM Smucker’s shares surged over +6% after it published stronger-than-expected Q2 adjusted EPS and raised its full-year adjusted EPS outlook. Similarly, Eli Lilly’s stock gained more than +5% following a proposed rule from the Biden administration aimed at including weight-loss drugs in Medicare and Medicaid.
Tariffs Spark Market Concerns
Despite positive news, stock market gains faced headwinds when former President Trump shared plans for new tariffs via his Truth Social platform. He mentioned imposing an additional 10% tariff on Chinese goods and 25% tariffs on imports from Mexico and Canada, pledging to sign an executive order on his first day if elected. Democrats scoffed at the idea, referring to the tariffs as a new sales tax likely to harm consumers. Additionally, Amgen’s stock plummeted over -11%, contributing to the Dow’s modest performance.
Economic Indicators Mixed as Confidence Rises
Today’s U.S. economic news offered a mixed picture for stocks and Federal Reserve policy. Consumer confidence in November climbed to a 16-month peak, while October’s new home sales fell drastically, reaching nearly a two-year low. The September S&P CoreLogic composite-20 home price index saw a year-over-year increase slow to 4.57%, down from 5.21% in August. New home sales for October decreased by -17.2% month-over-month, totaling 610,000, which was below the expected 725,000.
Consistent Consumer Confidence
The Conference Board U.S. November consumer confidence index rose +2.1 to 111.7, near the anticipated 111.8. Meanwhile, the Richmond Fed’s manufacturing outlook remained unchanged at -14, which disappointed expectations of an increase to -11.
Federal Reserve’s Hawkish Stance
Comments from San Francisco Fed President Mary Daly added to the negative sentiment among stocks. She emphasized, “Inflation is still printing above our 2% target, so we need to continue to work to bring that down.” This week’s economic news has been compressed as markets prepare for the Thanksgiving holiday. The minutes from the November FOMC meeting will be released later today, with the anticipated Q3 GDP revision expected to hold steady at 2.8% quarter-over-quarter annualized.
Backlash from T-notes and Global Markets
Over in the Treasury bond market, December 10-year T-notes (ZNZ24) have decreased by -10 ticks, with the yield rising +3.5 basis points to 4.308%. Pressure in this market stemmed from tariff announcements that could drive up consumer prices and fuel inflation concerns. Additionally, supply pressures linger as the Treasury plans to auction $70 billion of reopened 5-year T-notes later today.
International Markets Edge Lower
European stock markets showed declines today, with the Euro Stoxx 50 falling -0.59%. Similarly, China’s Shanghai Composite Index dropped -0.12%, while Japan’s Nikkei Stock 225 decreased by -0.87%.
Highlighting U.S. Stock Movers
In notable stock movements, NRG Energy (NRG) led gainers in the S&P 500, rising over +7% after Jeffries upgraded its rating to buy with a target price of $113. JM Smucker (SJM) also climbed over +6% following their positive earnings announcement. Eli Lilly (LLY) benefited from the government’s proposed drug coverage rules, increasing over +5%.
On the other hand, Amgen (AMGN) fell over -11% after recent disappointing trial results related to an obesity treatment. Likewise, Best Buy (BBY) reported weaker-than-expected Q3 sales, leading to a decline of over -7%, while Kohl’s (KSS) dropped more than -19% after a disappointing profit forecast.
Earnings Reports and Future Outlook
Several companies are due to report earnings, including Analog Devices Inc (ADI) and Autodesk Inc (ADSK), among others.
On the date of publication, Rich Asplund did not hold positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
