Stocks ticked higher Thursday as investors digested post-tariff earnings from Walmart
Wholesale Prices unexpectedly fell in April, the Bureau of Labor Statistics reported Thursday, as services prices declined by 0.7% -- the steepest rate in the survey's history since December 2009. The headline producer price index (PPI) declined 0.5% last month after being unchanged in March. Excluding food and energy prices, core PPI also fell 0.4%.
The S&P 500 Index added over 0.4%, while the Dow Jones Industrial Average climbed more than 270 points. The tech-heavy Nasdaq Composite was an outlier on Thursday, falling about 0.2%.
Investors are looking for more positive trade developments now that the S&P 500 has erased its tariff-induced losses from early April following the start of negotiations between Washington and Beijing announced over the weekend. China on Wednesday paused a ban of dual-use goods exports for 28 American companies for 90-days, and removed 17 companies from its "unreliable entity list." However, Beijing is still blocking exports of seven rare earth metals -- samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium -- that are used by the U.S. defense, energy and auto industries.
President Donald Trump said India has offered to "literally charge [the United States] no tariff" during a meeting with business leaders in Qatar on Thursday. However, Trump also raised more tariff jitters after he expressed that he does not want Apple
Here's how the market settled on Thursday:
S&P 500 Index
"I said, 'Tim look, we treated you really good, we put up with all the plants that you build in China for years," Trump said. "We're not interested in you building in India, India can take care of themselves."
Federal Reserve Chair Jerome Powell remained cautious towards the long-term health of the U.S. economy in his first remarks since the initial easing of U.S.-China trade relations, stating that interest rates are likely to remain high to support the economy as continues to shift in response to policy changes.
Dow Jones Industrial Average
In prepared remarks for the Thomas Laubach Research Conference in Washington, D.C. on Thursday, Powell said that near-zero interest rates are unlikely as higher inflation rates "reflect the possibility that inflation could be more volatile going forward" compared to the period following the 2008 financial crisis in the 2010's.
Nasdaq Composite Index
"We may be entering a period of more frequent, and potentially more persistent, supply shocks -- a difficult challenges for the economy and for central banks," Powell warned.
Walmart was in the spotlight on Thursday after the retail giant warned that tariffs are still impacting operations despite the recent agreement between U.S. and China to lower import duties to 30% for 90 days. The discounter reiterated its cautious full-year outlook following its fiscal first-quarter results, expecting sales to grow 3% to 4% and adjusted earnings to range between $2.50 to $2.60.
"We will do our best to keep our prices as low as possible," CEO Doug McMillon said in a statement. "But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins."
JPMorgan Chase CEO Jamie Dimon said Thursday that there is still a lot of "uncertainty" when it comes to tariff policy, and he is not ruling out the possibility of a near-term recession even as U.S.-China trade improves.
"Even at this new level, you see people holding back on investment and thinking through what they want to do," Dimon said during an interview with Bloomberg Television, adding that import taxes still remain sharply higher than they were a year.
Walmart is a lead retail sector bellwether, and its cautious tone towards the macroeconomic environment sets the stage for more earnings reports from key retailers Target
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U.S. Retail Sales data also impacted Wall Street's recent momentum on Thursday, as sales slowed in April as consumers began to cut some spending ahead of potential tariff-induced price increases. The month's advanced estimate showed a rise of 0.1%, the Commerce Department reported Thursday, coming in-line with economist estimates but marking a sharp slowdown from March's 1.7% gain. Excluding autos, sales also rose 0.1% for the month. Annual headline sales increased by a seasonally adjusted 5.2%.
Foot Locker
Wholesale Prices unexpectedly fell in April, the Bureau of Labor Statistics reported Thursday, as services prices declined by 0.7% -- the steepest rate in the survey's history since December 2009. The headline producer price index (PPI) declined 0.5% last month after being unchanged in March. Excluding food and energy prices, core PPI also fell 0.4%.
"By joining forces with DICK'S, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry," Foot Locker CEO Mary Dillon said in a statement.
Investors are looking for more positive trade developments now that the S&P 500 has erased its tariff-induced losses from early April following the start of negotiations between Washington and Beijing announced over the weekend. China on Wednesday paused a ban of dual-use goods exports for 28 American companies for 90-days, and removed 17 companies from its "unreliable entity list." However, Beijing is still blocking exports of seven rare earth metals -- samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium -- that are used by the U.S. defense, energy and auto industries.
UnitedHealth Group
President Donald Trump said India has offered to "literally charge [the United States] no tariff" during a meeting with business leaders in Qatar on Thursday. However, Trump also raised more tariff jitters after he expressed that he does not want Apple
"I said, 'Tim look, we treated you really good, we put up with all the plants that you build in China for years," Trump said. "We're not interested in you building in India, India can take care of themselves."
The session's losses bring the stock down more than 50% since mid-April, as UnitedHealth pulled its full-year guidance due to unexpected costs related to its Medicare Advantage and Optum Health insurance plans and announced the sudden exit of CEO Andrew Witty.
Federal Reserve Chair Jerome Powell remained cautious towards the long-term health of the U.S. economy in his first remarks since the initial easing of U.S.-China trade relations, stating that interest rates are likely to remain high to support the economy as continues to shift in response to policy changes.
In prepared remarks for the Thomas Laubach Research Conference in Washington, D.C. on Thursday, Powell said that near-zero interest rates are unlikely as higher inflation rates "reflect the possibility that inflation could be more volatile going forward" compared to the period following the 2008 financial crisis in the 2010's.
"We may be entering a period of more frequent, and potentially more persistent, supply shocks -- a difficult challenges for the economy and for central banks," Powell warned.
JPMorgan Chase CEO Jamie Dimon said Thursday that there is still a lot of "uncertainty" when it comes to tariff policy, and he is not ruling out the possibility of a near-term recession even as U.S.-China trade improves.
"Even at this new level, you see people holding back on investment and thinking through what they want to do," Dimon said during an interview with Bloomberg Television, adding that import taxes still remain sharply higher than they were a year.
In the News:
Foot Locker
"By joining forces with DICK'S, Foot Locker will be even better positioned to expand sneaker culture, elevate the omnichannel experience for our customers and brand partners, and enhance our position in the industry," Foot Locker CEO Mary Dillon said in a statement.
UnitedHealth Group
The session's losses bring the stock down more than 50% since mid-April, as UnitedHealth pulled its full-year guidance due to unexpected costs related to its Medicare Advantage and Optum Health insurance plans and announced the sudden exit of CEO Andrew Witty.
