Stocks are slipping a bit lower from their all-time highs on Wall Street. The S&P 500 was down 0.3% early Wednesday, continuing a quiet run since it set a record last week. The Dow was off 217 points, or 0.5%. The Nasdaq composite was 0.5% lower. Treasury yields edged a bit lower in the bond market after a report said the U.S. economy likely grew a touch slower at the end of 2023 than earlier estimated. Boston Beer, which makes Samuel Adams, slid after reporting a larger loss than expected. It was hurt by declines for its hard seltzer, Truly.
Quick Read
- Wall Street experienced a slight decline, with the S&P 500 down 0.3%, the Dow falling by 217 points (0.5%), and the Nasdaq dropping 0.5%.
- Treasury yields decreased slightly following a report suggesting the U.S. economy grew more slowly than initially estimated at the end of 2023.
- Boston Beer’s shares fell after reporting a larger-than-expected loss, primarily due to declines in its hard seltzer brand, Truly.
- Ahead of new economic growth data for the final quarter of 2023, futures for the S&P 500 and the Dow Jones Industrial Average saw decreases.
- Despite recent gains, there is a consensus that the Federal Reserve may not cut interest rates until late spring or summer.
- The U.S. government is set to release its second estimate of economic growth for Q4 2023, with initial estimates showing a 3.3% expansion.
- Boston Beer’s stock plummeted in premarket trading after posting significant fourth-quarter losses, while eBay’s shares rose following better-than-expected financial results.
- European markets showed mixed results, with slight movements in major indexes.
- Asian markets, including Hong Kong and Shanghai, experienced declines, partly due to challenges in the property sector, highlighted by Country Garden’s liquidation petition.
- Australia’s inflation rate remained steady, leading to speculation about potential interest rate cuts by the Reserve Bank.
- Oil prices dropped in electronic trading, with U.S. benchmark crude oil and Brent crude both seeing decreases.
- The U.S. dollar strengthened against the Japanese yen, while the euro experienced a slight decline.
The Associated Press has the story:
Wall Street opens lower, pulling further below its recent record high
Newslooks- NEW YORK (AP) —
Stocks are slipping a bit lower from their all-time highs on Wall Street. The S&P 500 was down 0.3% early Wednesday, continuing a quiet run since it set a record last week. The Dow was off 217 points, or 0.5%. The Nasdaq composite was 0.5% lower. Treasury yields edged a bit lower in the bond market after a report said the U.S. economy likely grew a touch slower at the end of 2023 than earlier estimated. Boston Beer, which makes Samuel Adams, slid after reporting a larger loss than expected. It was hurt by declines for its hard seltzer, Truly.
Wall Street dipped before the opening bell Wednesday ahead of a second look at economic growth during the final three months of 2023 and more corporate financial results.
Futures for the S&P 500 lost 0.4% before markets opened and futures for the Dow Jones Industrial Average fell about 0.3%.
Markets have been mixed this week but are still on track to end February with gains despite a growing consensus that the Federal Reserve is unlikely to cut benchmark interest rates until late spring or summer.
The government will issue its second estimate shortly on how the economy fared in the final quarter of 2023. Economic growth was much hotter than expected in the first estimate for gross domestic product, with the economy expanding a brisk 3.3% in the quarter as Americans continued to spend freely.
In premarket trading, Boston Beer shares tumbled more than 11% after the owner of Sam Adams and Truly posted a much wider fourth-quarter loss than analysts anticipated.
On the winning side was eBay, which jumped 5.3% after beating Wall Street’s fourth-quarter sales and profit targets.
In Europe at midday, France’s CAC 40 edged up 0.1%, Germany’s DAX ticked down 0.1% and Britain’s FTSE 100 tumbled 0.7%.
In Asian trading, Japan’s benchmark Nikkei 225 edged 0.1% lower to 39,208.03.
Shares in Hong Kong and Shanghai sank even after the territory’s financial chief announced a budget aimed at boosting tourism and the property industry. The Hang Seng in Hong Kong slipped 1.5% to 16,536.85, while the Shanghai Composite sank 1.9% to 2,957.85.
China’s largest private property developer, Country Garden, said Wednesday that it is facing a liquidation petition after failing to repay a term loan facility worth 1.6 billion Hong Kong dollars ($204.5 million). The first hearing in the case is scheduled for May 17.
The move comes after China Evergrande, the world’s most heavily indebted real estate developer, was ordered to undergo liquidation following a failed effort to restructure $300 billion in late January.
Australia’s S&P/ASX 200 was little changed at 7,660.40 after the Australian Bureau of Statistics said Wednesday the country’s inflation rate held at a two-year low in January, triggering hopes that the Reserve Bank may cut its benchmark interest rate.
South Korea’s Kospi gained 1% to 2,652.29, while Thailand’s SET was down 0.8%.
In other trading, U.S. benchmark crude oil lost 79 cents to $78.08 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, shed 77 cents to $81.89 per barrel.
The U.S. dollar rose to 150.70 Japanese yen from 150.51 Japanese yen. The euro fell to $1.0810 from $1.0843.
On Tuesday, the S&P 500 added 0.2% was just off its all-time high set last week. The Dow Jones Industrial Average dipped 0.2% and the Nasdaq composite rose 0.4%.
