ticker

S&P 500 and Nasdaq Turn Lower After Retail Sales Report and Walmart Earnings

Barry Adams
15 May, 2025
New York City

Wall Street indexes struggled to rise above the flatline in early trading in New York, and investors reviewed the latest batch of earnings.

The S&P 500 index edged down 0.1%, and the Nasdaq Composite decreased 0.2%, and the tech-heavy index extended gains for the sixth session in a row as of the close of Wednesday.

On the economic front, investors reviewed the latest update on producer price inflation and retail sales.

Retail and Food Services Sales Advanced in April

Retail and food services sales adjusted for seasonal variations but not for price fluctuations increased 0.1% to $724.1 billion, the U.S. Census Bureau reported Thursday.

On an annual basis, retail sales advanced 5.2% from a year ago, reflecting higher prices at restaurants and bars.

However, sales excluding food services, auto dealers, building materials stores, and gasoline stations, which are used to calculate GDP, decreased 0.2%, lower than the upwardly revised 0.5% increase in March.

Producer Price Index In April Falls for First Time In 7 Months

The seasonally adjusted producer price index decreased 0.5% from the previous month in April, following a revised flat reading in March, the U.S. Bureau of Labor Statistics reported Thursday.

On an unadjusted basis, the measure of producer price inflation advanced 2.4%.

The monthly measure of inflation declined for the first time since October and fell at the fastest pace since April 2020, during the early outbreak of the Covid-19 pandemic.

The goods price index was unchanged, but the service price index fell 0.7%, the largest decline since record keeping began in December 2009.

The producer prices of less food, energy, and trade services edged down 0.1% in April, the first decline since falling 0.8% in April 2020.

For the 12 months ended April 2025, the index for final demand less foods, energy, and trade services advanced 2.9%.

U.S. Stock Movers

Cisco Systems advanced 3.2% to $62.76 after the networking gear company reported better-than-expected fiscal third quarter adjusted earnings of 96 cents per share and revenue of $14.2 billion.

Foot Locker jumped 83% to $23.56 after the specialty retailer was reportedly in merger talks with Dick's Sporting Goods for $2.3 billion, or about $24 per share.

Boot Barn Holdings jumped 12% to $150.12 after the apparel and accessories retailer reported strong sales and earnings growth.

Same-store sales in the quarter increased 6%, driven by an in-store sales rise of 5.5% and an e-commerce sales increase of 9.8%.

Walmart decreased 0.03% to $96.79 after the retailer reported a decline in earnings in the fiscal first quarter and the company reiterated its annual sales and earnings outlook.

I’m concerned that consumers are going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June,” Chief Financial Officer John David Rainey said in an interview with CNBC.

The company estimated fiscal second quarter sales to increase between 3.5% and 4.5% and did not provide any indication of earnings and earnings per share because of constantly changing U.S. tariff rates.

Revenue increased 2.5% to $161.51 billion, net income decreased to $4.49 billion from $5.1 billion, and diluted earnings per share fell to 56 cents from 63 cents a year ago.

Alibaba Group declined 4.4% to 128.25 after the China-based e-commerce company reported a 7% increase in revenue and earnings soared 279%, largely reflecting changes in equity valuations of its holdings.

UK GDP Growth Accelerated In First Quarter, Eurozone Employment Growth Extended to 16th Consecutive Quarter

Bridgette Randall
15 May, 2025
London

European markets declined, and investors shifted their focus to the fresh batch of earnings.

Benchmark indexes in Frankfurt, Paris, Milan, and London edged lower after enthusiasm about the U.S.-China deal faded.

UK Q1 GDP Growth Surpassed Expectations

On the economic front, the U.K.'s first quarter GDP growth accelerated to a 0.7% increase from the previous quarter, the Office for National Statistics reported Thursday.

The sustained expansion in the service sector supported the faster-than-expected increase in economic activities by 1.3% on an annual basis.

Meanwhile, manufacturing activities expanded 1.1%, and construction activities stayed unchanged.

Eurozone Employment Growth Accelerated in First Quarter

The number of employed people in the eurozone increased by 0.3% to 171.79 million in the first quarter, accelerating from 0.1% in the previous quarter, according to a report released by Eurostat on Thursday.

On an annual basis, the eurozone employment increased by 0.8%.

Employment increased in Spain by 0.8%, in Czechia by 0.5%, in Finland by 0.4%, in Sweden by 0.3%, and in Luxembourg by 0.1%, but fell in Estonia by 0.8%, in Poland by 0.6%, in France by 0.1%, in the Netherlands by 0.1%, and in Lithuania by 0.1%.

German Wholesale Inflation Rises at the Slowest Pace In 5 Months

Germany's wholesale price increased for the fifth consecutive month in April, but the rise was the slowest over the period, according to the latest data released by the Federal Statistical Office.

Wholesale prices increased 0.8% in April, weaker than the 1.3% rise in the previous month and the slowest pace since December.

On a monthly basis, wholesale prices declined 0.1%, following a fall of 0.2% in March.

Europe Indexes and Yields

The DAX index decreased by 0.4% to 23,424.04, the CAC-40 index edged lower 0.4% to 7,802.03, and the FTSE 100 index declined 0.4% to 8,547.55.

The yield on 10-year German bonds inched lower to 2.68%, French bonds decreased to 3.36%, the UK gilts moved down to 4.71%, and Italian bonds edged lower to 3.69%.

The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.78 Swiss cents.

Brent crude decreased $1.92 to $64.17 a barrel, and the Dutch TTF natural gas was higher by €0.45 to €35.21 per MWh.

Europe Movers

Allianz AG eased 3.2% to €340.50 after the German insurance and financial services company reported record operating profit in the first quarter but fell short of expectations.

ThyssenKrupp AG plunged 9.4% to €8.55 after the German industrial engineering and steel production company reported sharply lower than expected earnings in the first half ending in March.

Compass Group plc advanced 1.6% to 2,581 pence after the UK-based contract food services provider for airlines reported better-than-expected first-half results ending in March.

The catering company also reiterated its annual outlook but cited improvement in operating margin.

Iveco Group NV decreased 4.4% to €15.56 after the Italy-based vehicle maker and the defense company reported a 10% decline in revenue and retained its annual outlook on strong orders.

RTL Group SA traded up 0.5% to €32.30 after the Luxembourg-based and Germany- and France-focused TV and radio station operator and streaming services provider reported first-quarter 2025 results.

The company reported a decline in revenue in the latest quarter, an increase in paying subscribers to 7.1 million, and reiterated its annual outlook.

Revenue is expected to increase to around €6.45 billion, compared to €6.25 billion a year earlier, and the company intends to pay out dividends of at least 80% of its adjusted full-year net earnings.