Stocks ended lower Friday, as investors pared bets on Federal Reserve interest rate cuts and repriced stock and bond markets for the upcoming administration of President-elect Donald Trump.
The Dow Jones Industrial Average fell 305.87 points, or 0.70%, to end the session at 43,444.99, while the S&P 500 lost 1.32% to close at 5,870.62 and the tech-heavy Nasdaq Composite dropped 2.24% to finish the day at 18,680.12.
The major indexes finished down for the week.
The S&P 500 posted a weekly loss of 2.1%, while the Nasdaq Composite slid about 3.2%, according to CNBC, and the Dow fell 1.2% in the period.
Updated at 12:15 AM EST
Trump un-trade
Stocks are extending gains into the mid-day session, with the S&P 500 down 83 points, or 1.38% and the rate-sensitive Nasdaq slumping 440 points, or 2.3%, as Treasury yields grind higher following the stronger-than-expected retail sales data.
Benchmark 10-year note yields were last trading at 4.455% and 2-year notes marked at 4.318%
$SPY near the 38.2% retrace of the low from just before the election to the peak this past Monday morning pic.twitter.com/LpvzwJ3zj4
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) November 15, 2024
Updated at 10:07 AM EST
Pfizer jabbed
Pfizer (PFE) shares slumped to the lowest levels in twelve years in early Friday trading as investors dumped vaccine-focused stocks following President-elect Donald Trump's plans to appoint Robert F Kennedy Jr. as Secretary of Health and Human Services.
Kennedy, who said on a podcast in 2023 that 'there’s no vaccine that is safe and effective" and has promoted debunked theories that vaccines are linked to autism, has vowed to overhaul the Food & Drug Administration, which he accused of waging a "war on public health" via a post on his verified X account last month.
Pfizer shares were last marked 4.3% lower at $24.96 each, while the S&P Biotech ETF slumped 2.9% $94.08, the lowest since early August.
Pfizer $PFE 👀 an overreaction to RFK and BIG Pharma? pic.twitter.com/hfuLgNSNNf
— Dividend Diplomats (@DvdndDiplomats) November 15, 2024
Updated at 9:39 AM EST
Soft open
The S&P 500 was marked 45 points, or 0.75% lower in the opening minutes of trading, with the Nasdaq down 247 points, or 1.29%
The Dow was last marked 145 points lower while the mid-cap Russell 2000 fell 2 points, or 0.1% following the October retail sales data.
"The reacceleration of retail sales is not strong enough to cause concern for the Fed and indicates that the consumer remains healthy prior to any major policy shifts such as tariffs that may come next year," said Scott Helfstein, head of investment strategy at Global X. "This is a good start to the fourth quarter."
S&P 500 Opening Bell Heatmap (Nov. 15, 2024)$SPY -0.61%🟥$QQQ -1.13%🟥$DJI -0.39%🟥$IWM -0.09%🟥 pic.twitter.com/K9GRkd0FHR
— Wall St Engine (@wallstengine) November 15, 2024
Updated at 8:58 AM EST
Still shopping
U.S. retail sales rose firmly again last month, rising 0.4% to a collective total of $718.9 billion, suggesting consumer spending and sentiment remains healthy into the final stretch of 2024 and should support broader growth prospects heading into next year.
The closely tracked control-group number, which excludes autos, building materials, office supplies, gas-station sales and tobacco, and feeds into the government's GDP calculations, slipped 0.1%, but the September reading was revised to a gain of 1.2%
Futures contracts tied to the S&P 500 suggest a 30 point opening bell decline while those linked to the Dow Jones Industrial Average are called 140 points lower. The tech-focused Nasdaq is priced for a 180 point pullback.
Benchmark 10-year Treasury note yields were little-changed at 4.449% following the data release, while 2-year notes were up 2 basis points to 4.343%.
Oct retail sales were +0.4% m/m, above the +0.3% est, while control group (the "core" measure that goes into GDP) sales were actually -0.1% vs +0.3% est. Complicating this further is that last month saw significant upward revisions. pic.twitter.com/QVyrDBfoby
— Liz Young Thomas (@LizThomasStrat) November 15, 2024
Stock Market Today
Stocks finished lower on Thursday, with another afternoon selloff tied to a jump in Treasury bond yields, this time linked to hawkish comments from Fed Chairman Jerome Powell.
Speaking as part of an investment forum in Dallas, Powell said the Fed could afford to be patient on future rate cuts, given the strength of the economy and the stubborn nature of inflation, setting up a potential conflict with the incoming Trump administration.
The [economy is not sending any signals that we need to be in a hurry to lower rates," Powell said in prepared remarks to a business forum. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully."
"Inflation is running close to our 2% goal, but it's not there yet, and we are determined to finish the job," he added.
Traders sharply pared bets on a December rate cut, with CME Group now pegging the odds at around 62%, down from as high as 85% late last month.
The prospect of higher-for-longer rates is also lifting Treasury yields, with rate-sensitive 2-year notes pegged at 4.321% in overnight trading and 10-year paper trading at 4.431%, having touched a July high of 4.46% in overnight trading.
Related: CPI inflation sparks Fed interest rate cut bets
Stocks are also trading with caution heading into the close of the week as Trump continues to form the base of his cabinet, opting for Robert F. Kennedy Jr., a longtime vaccine skeptic and thorn in the side of the pharmaceutical industry, as secretary of health and human services.
The selection of Florida Rep. Matt Gaetz as attorney general has also raised eyebrows and added to concern that the administration could spend a significant amount of political capital in a long fight to have the president-elect's nominations confirmed by the Senate.
That's all weighing on stocks, and other risk assets, heading into the start of trading Friday. Futures contracts tied to the S&P 500 are priced for a 28-point opening-bell decline and the Dow Jones Industrial Average is called 155 points lower
The tech-focused Nasdaq, meanwhile, is called 145 points lower with chip stocks in the red following a mixed set of fourth-quarter earnings from Applied Materials (AMAT) .
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In overseas markets, European stocks were marked 0.35% lower in early Frankfurt trading, with the FTSE 100 edging 0.12% higher in London.
Overnight in Asia, the regional MSCI ex-Japan benchmark slipped 0.23% while the Nikkei 225 snapped a three-day losing streak with a 0.28% gain in Tokyo.
Related: Veteran fund manager sees world of pain coming for stocks
