NEW YORK: Wall Street stocks fell on Tuesday (May 16) following a downcast earnings report from Home Depot, as markets eyed pivotal negotiations on lifting the US debt ceiling.
Shares of Home Depot slid 2.2%, weighing on the Dow, after the home improvement retailer reported a drop in quarterly sales and cut its 2023 forecast.
The report added to concerns about the health of the US consumer.
“The housing market boomed and then crashed and what is happening with Home Depot could be a warning of what will come to the broader retail space,” said Oanda’s Edward Moya.
The Dow Jones Industrial Average fell 336.46 points, or 1.01%, to 33,012.14, the S&P 500 lost 26.38 points, or 0.64%, to 4,109.9 and the Nasdaq Composite dipped 22.16 points, or 0.18%, to 12,343.05.
“You can argue that people are tired of spending on the house, they want experiences, they want to go out they want to do other things, they don’t want to fix up the house according to Home Depot, because they had horrendous earnings,” said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
The Commerce Department reported retail sales rose 0.4% in April, short of the estimate for an increase of 0.8%. But core retail sales rebounded, a figure excluding automobiles, gasoline, building materials and food services.
Hard-hit sectors included energy and materials, but large technology companies such as Amazon and Google parent Alphabet advanced.
Markets were watching for talks between President Joe Biden and House Republican leaders to avert a US debt default. Biden has shortened an upcoming trip to Asia in light of the unresolved talks, according to two sources.
Among other companies, Horizon Therapeutics fell 14.2% after the Federal Trade Commission sued to block its proposed US$28 billion takeover by Amgen, which dropped 2.4%. – AFP, Reuters
Source: The Sun Daily
A word from our sponsor:
Need Help With Your Personal Finance / Money Issue or need a coach to help you structure or just want to learn the financial skill to self manage your financial matters and retirement. iLearnFromCloud.com
Need to solve a problem quickly, now you can solve it by learning the art of problem solving Art Of Problem Solving
Feeling hungry. Latest food news from Best Restaurant To Eat Malaysian Food and Travel Blog
Memory loss. Need to organize better. Solve problem fast with Free Mind Mapping Software Mind Mapping 101
Need A Customized System Development for your business or Going Paperless XPERT TECHNOLOGIES - Empowering The Paperless Economy
No comments:
Post a Comment