U.S. Averages Turn Mixed After Wholesale Inflation Accelerates

Barry Adams
14 Mar, 2024
New York City

Stocks on Wall Street advanced, and tech stocks led the gainers as the market rally broadened to the energy and materials sectors. 

The S&P 500 index and the Nasdaq Composite advanced more than 0.4%, and Treasury yields edged slightly higher after investors reviewed the latest retail sales and wholesale price data. 

 

Weaker U.S. Retail Sales Bounce In February  

Seasonally adjusted retail and food services sales, but not adjusted for prices, increased 0.6% from the previous month and rose 1.5% from a year ago in February. 

Despite elevated inflation and rising interest rates, consumer spending is holding up, but consumers are sticking to basic necessities and avoiding discretionary items. 

Nonstore retail sales increased 6.4%, and food services and drinking place sales advanced 6.3% from a year ago. 

Retail sales in February rose by 0.6% on a monthly basis, and January's monthly sales decline was lowered to 1.1% from the previous estimate of a 0.8% fall. 

Total retail sales over the three-month period to February 2024, which covers the critical holiday period, rose 2.1% from the same period a year ago. 

 

Producer Price Inflation Accelerates In February 

The producer price index for the final demand increased by 0.6% from the previous month in February, the U.S. Bureau of Labor Statistics reported Thursday. 

The annual measure of wholesale inflation accelerated to 1.6% in the month from 0.9% in January after high energy prices drove goods prices to increase at the fastest pace in six months. 

Goods prices increased 1.2%, and the cost of services edged up 0.3%. 

However, the core rate of inflation, which excludes volatile energy and food prices, rose at a slower pace of 0.3% after rising 0.5% in the previous month. 

 

U.S. Indexes and Yields

The S&P 500 index increased 0.1% to 5,173.03, and the Nasdaq Composite fell 0.4% to 16,196.39. 

The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched up to 4.19%, and 30-year Treasury bonds edged down to 4.35%.

WTI crude oil increased $0.77 to $80.49 a barrel, and natural gas prices increased 1 cent to $1.65 a thermal unit.

Gold decreased by $7.34 to $2,167.14 an ounce, and silver rose 6 cents to $24.91. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.84.

 

U.S. Stock Movers

Robinhood Markets soared 12.4% to $19.30 after the online brokerage firm reported monthly operating statistics for February 2024 and said assets under custody increased 16% from the previous month. 

SentinelOne dropped 8.4% to $25.39 despite the cybersecurity firm reporting better-than-expected fourth quarter revenue and earnings. 

Dollar General rose 5.7% to $167.21 after the deep discount retailer reported better-than-expected holiday quarter sales and issued an annual earnings outlook ahead of expectations. 

The retailer estimated 2024 earnings per share to fall between $6.80 and $7.55, on the back of sales growth between 6.0% and 6.7%. 

DICK's Sporting Goods rose 4.9% to $197.0 after the athletic goods retailer posted record quarterly sales in the fiscal fourth quarter. 

Net sales in the holiday quarter ending on February 3rd increased 7.85 to $3.9 billion from $3.6 billion, net income advanced 26% to $296 million from $236 million, and diluted earnings per share rose to $3.57 from $2.60 a year ago. 

The company estimated fiscal 2024 earnings per share to range between $12.85 and $13.25 and estimated same-store sales to rise between 1% and 2%.