The Register Citizen (Torrington, CT)
Stocks fall with retail sales concern
U.S. stocks fell for the third straight day after lackluster retail sales figures fanned concern that consumer spending is cooling, while traders awaited next week’s rate decision by the Federal Reserve. Tenyear Treasury yields tightened.
The drop in retail spending provided a second data point — after Tuesday’s tepid inflation figures — to suggest unsteady growth in the world’s largest economy. Trading in S&P 500 Index shares was more than 10 percent below the 30-day average, suggesting investors are taking a waitand-see attitude.
The Stoxx Europe 600 Index retreated from earlier gains, and benchmarks dropped across Asia after the sudden firing of U.S. Secretary of State Rex Tillerson. The euro declined after Mario Draghi’s comment that recent gains weren’t all warranted by economic fundamentals. News that factory output and investment growth in China had unexpectedly accelerated boosted most industrial metals, including copper.
Oil fluctuated after OPEC raised its expectation for supply growth from the U.S. and other producers for a fourth consecutive month. U.S. crude inventories rose more than anticipated last week. Bitcoin dropped to its lowest level in over a month.
Tillerson’s ouster raised concerns of a new guard in the White House that may take a harder line on trade, advancing President Donald Trump’s agenda of imposing tariffs. To replace Tillerson, Trump nominated CIA director Mike Pompeo, an ex-congressman who has endorsed “pushing back against the Chinese threat.” And on Wednesday, the president named economist and CNBC contributor Larry Kudlow to replace Gary Cohn as director of the White House National Economic Council.
These changes come as the administration considers tariffs on a broad range of Chinese imports, with Politico reporting one proposal is to take measures against more than $30 billion of goods a year.