Market Snapshot: U.S. stocks turn lower ahead of Jackson Hole meeting
U.S. stocks fell on Thursday, erasing an early advance and extending the previous session’s decline as traders awaited the highly anticipated gathering of central bankers in Jackson Hole, Wyo., before making big bets on market direction.
The Dow Jones Industrial Average DJIA, +0.01% fell 19 points to 21,792, a decline of 0.1%. The S&P 500 SPX, +0.01% slid 3 points, or 0.1%, to 2,441. The Nasdaq Composite Index COMP, -0.04% lost 8 points, or 0.1%, to 6,270.
The day’s losses were broad-based, with nine of the 11 primary S&P 500 sectors down on the day. Consumer staples were the biggest losers, off 0.5%, with energy down 0.3%.
Market participants also digested the latest economic data, which showed that jobless claims rose by 2,000 in the latest week, a smaller increase than expected. Separately, a read on new-home sales came in at 571,000, below the 608,000 that had been expected, while mortgage rates fell to their lowest level of the year.
The meeting of central bankers is likely to be the primary driver of trading, even though such key speakers as Federal Reserve Chairwoman Janet Yellen won’t appear until Friday.
“You can’t underestimate the importance of Jackson Hole, and this year is especially interesting,” said Brian Battle, director of trading at Performance Trust Capital Partners. “Yellen’s commentary will be closely watched, because investors want to know both if the Fed will be raising rates, and also the timing and the magnitude of the Fed unwinding its portfolio.”
For the week, the Dow is on pace to gain 0.5%, the S&P 500 is set to add 0.6%, while the Nasdaq Composite is on track to rise 0.8%, a move that would end a four-week string of declines for the technology-heavy index.
Equities’ recent struggle has in part been put down to President Donald Trump’s threat late Tuesday to shut down the government if he didn’t get funding for a border wall with Mexico.
“The headlines out of D.C. are looming over the stock market,” Battle said. “Is there going to be a shutdown? A fight over the debt ceiling? We’ve heard these threats before, but they seem pretty contentious this time. Plus there is the question about tax reform. If that doesn’t get done, that’ll take some of the air out of the market.”
Words from Wyoming: The program for the Kansas City Federal Reserve Bank’s symposium, titled “Fostering a Dynamic Global Economy,” is set for release at 8 p.m. Eastern Time. The meeting runs through Saturday.
European Central Bank President Mario Draghi will be on the lineup with Yellen on Friday, and investors will watch for any hints on the path for monetary policy from both central bank chiefs.
See: Here’s what investors will be watching when Draghi, Yellen speak at Jackson Hole
Stock movers: Tiffany & Co. TIF, +0.60% posted second-quarter earnings of 92 cents a share, beating expectations. Stock in the luxury jewelry company rose 1.2%.
Signet shares SIG, +22.97% jumped 21% after the jewelry retailer’s quarterly earnings and sales beat expectations.
Burlington Stores BURL, +4.90% climbed 5.1% after the discount store chain posted better-than-expected second-quarter results and raised its outlook for the full year.
Sears SHLD, +7.35% posted a narrower quarterly loss of $ 2.34 a share and said it would close 28 Kmart stores this year. Shares spiked 7.8%.
J.M. Smucker Co. shares SJM, -7.56% fell 7.7% as the foods producer lowered its full-year outlook and its first-quarter earnings missed estimates. Hormel Foods Corp.’s HRL, -6.16% stock dropped 7.1% after the Spam maker cut its full-year earnings forecast.
The food companies were the two biggest percentage decliners among S&P 500 components, and they pressured the consumer staples space.
U.S.-listed shares of CRH PLC CRH, +4.05% were up 3.6% after the Irish building materials company agreed to sell its Americas distribution business to Beacon Roofing Supply BECN, +13.60% Beacon shares climbed 14%.
A consortium that includes Western Digital Corp. WDC, +1.05% will offer 1.9 trillion yen ($ 17 billion) to purchase Toshiba Corp.’s 6502, +0.95% memory chip business, sources told Reuters on Thursday.
Invesco Ltd. IVZ, -0.61% is reportedly closing in on a $ 1 billion deal for Guggenheim Partners’s ETF business. Shares of Invesco fell 1%.
Other markets: In Asian equities, Hong Kong shares HSI, +0.43% finished higher while Japan’s Nikkei NIK, -0.42% lost ground. European equities SXXP, +0.40% traded modestly higher.
The ICE Dollar Index DXY, +0.06% was up 0.1% at 93.1940. A single bitcoin BTCUSD, +2.89% was up 2% to $ 4,224.05 after an upgrade to increase transaction sizes was implemented.
Oil prices CLV7, -1.28% fell 0.9%, while gold prices GCZ7, -0.05% slipped 0.2% to $ 1,285.90 an ounce.