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Thu, May 15, 2025, 1:04 PM 2 min read
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US stocks fluctuated connected Thursday arsenic investors weighed Walmart's (WMT) tariff-clouded net and digested retail income and ostentation information for further clues to the wellness of the economy.
The S&P 500 (^GSPC) roseate 0.4%. The Dow Jones Industrial Average (^DJI) gained much than 0.6%, oregon astir 250 points. The Nasdaq Composite (^IXIC) fell 0.2%, breaking a six-day triumph streak for the tech-heavy index.
Markets are connected ticker for the adjacent catalyst present that US-China trade-truce euphoria has faded. On Thursday, successful the latest development, President Trump said India has offered to "literally complaint america nary tariffs" connected US goods to assistance clinch a commercialized deal.
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But firm statements and economical information continued coating a somewhat antithetic reality: In its quarterly results, Walmart said its prices volition rise arsenic it can't debar passing connected the precocious costs of tariffs to customers. Walmart shares fell little than 1% connected the day.
Read more: The latest connected Trump's tariffs
Meanwhile, retail income slowed sharply successful April, barely rising successful a crisp reversal from American consumers' pre-tariff spending burst successful March.
But wholesale ostentation unexpectedly slowed past month, adjacent arsenic galore of Trump's tariffs began coming into effect. The Producer Price Index fell 0.5% successful April and roseate astatine a 2.4% yearly clip. The Consumer Price Index (CPI) update this week showed ostentation pressures easing to four-year lows.
Federal Reserve policymakers person stressed that they are watching for incoming information to supply a clearer representation of the authorities of the economy. Fed Chair Jerome Powell connected Thursday again warned of wide economical "uncertainty," saying the US system whitethorn beryllium entering a period with much predominant "supply shocks" and volatile inflation.
Meanwhile, oil tumbled aft Trump said the US is "close to possibly doing a deal" with Iran implicit its atomic program.
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Defensive sectors pb the S&P 500 higher
For the archetypal clip successful respective sessions, tech stocks weren't among the large marketplace leaders connected Thursday.
Instead, a antiaircraft slant helped the S&P 500 (^GSPC) decorativeness successful the green. Utilities and Consumer Staples led the assemblage enactment wrong the benchmark index, some rising implicit 2%.
On a azygous banal basis, Dollar General (DG) popped much than 6%, portion Deere & Company (DE) banal roseate astir 4%.
Meta slides arsenic Wall Street Journal reports AI exemplary delay
Shares of Meta (META) fell much than 2% as The Wall Street Journal reported the tech elephantine volition beryllium delaying the rollout of a flagship AI model.
The Journal reported that "Company engineers are struggling to importantly amended the capabilities of its 'Behemoth' large-language model, starring to unit questions astir whether improvements implicit anterior versions are important capable to warrant nationalist release."
Amazon banal sinks aft latest occupation cuts, leads Mag 7 lower
Amazon (AMZN) banal sank arsenic overmuch arsenic 3.6% pursuing quality Wednesday that the tech elephantine chopped jobs successful its devices and services division.
Shares pared losses aboriginal successful the trading league and were down 2.4% Thursday afternoon.
Amazon chopped 100 jobs successful the division, which includes its Alexa dependable assistant, according to Reuters. The institution has laid disconnected 27,000 employees since the commencement of 2022, according to CNBC.
Shares of Amazon are down much than 6% successful 2025 arsenic Trump's back-and-forth commercialized policies and greater scrutiny of Big Tech's AI spending person enactment unit connected the "Magnificent Seven" stocks.
Amazon shares had led its tech peers higher Monday aft the US and China announced a impermanent commercialized truce. The banal surged different 1.3% connected Tuesday arsenic Amazon unveiled a $5 cardinal woody with Saudi Arabia's AI task Humain to grow Amazon Web Services (AWS) successful the country.
Other Magnificent Seven stocks besides fell Thursday aft gains earlier successful the week. Tesla (TSLA) banal fell 1.6% connected Thursday afternoon, portion Google (GOOG) and Meta (META) fell astir 1%. Nvidia (NVDA) and Apple (AAPL) dropped fractionally.
Most manufacturers accidental terms increases are coming
Thursday brought different cooler-than-expected speechmaking of inflation. Both the Producer Price Index (PPI) and Consumer Price Index (CPI) showed prices accrued little than expected successful April.
But portion the information isn't showing yet, surveys proceed to flash informing signs that terms hikes are coming.
In the Institute for Supply Management's latest forecast 87% of manufacturers said they program to walk astatine slightest immoderate of the terms increases they're expecting to buyers. This study came conscionable hours aft Walmart (WMT) CFO John David Rainey told our Brian Sozzi that the section volition beryllium expanding prices connected immoderate products by treble digits.
It's unclear erstwhile each of this could filter into higher nationalist ostentation readings. But Rainey told Yahoo Finance that those Walmart terms hikes volition beryllium hitting user wallets aboriginal this month.
Dick's Sporting Goods takes connected large hazard with $2.4 cardinal stake connected Foot Locker
Yahoo Finance's Brooke DiPalma reports:
Coinbase banal drops aft cyber criminals swipe lawsuit information and marque $20 cardinal ransom demand
Yahoo Finance's David Hollerith reports:
UnitedHealth banal craters, hitting 5-year debased aft caller study reveals imaginable Medicare fraud probe
Yahoo Finance's Myles Udland reports:
Despite deals, US tariffs inactive 'significantly higher' than astatine commencement of year, Wall Street warns
Investors cheered President Trump's tariff reductions and deals with trading partners China and the UK, but Wall Street points retired that the tariff rates are inactive comparatively high.
"The US effectual tariff complaint remains importantly higher than it was astatine the commencement of the year," Solita Marcelli, main concern serviceman Americas for UBS Global Wealth Management, wrote successful a lawsuit enactment connected Thursday.
Marcelli pointed retired the US effectual tariff complaint — astatine astir 15% — is present six times higher than the 2.5% complaint that prevailed successful January earlier President Trump returned to the White House.
That assumes that the rolled-back tariffs during the 90-day intermission announced past period tin beryllium maintained beyond the deadline.
"As the Trump medication has indicated that the 10% baseline tariff is improbable to beryllium negotiated lower, these higher tariffs could dilatory the US system and propulsion up prices," Marcelli warned.
This morning's commentary from retail elephantine Walmart (WMT) CEO Doug McMillon highlights this risk.
"We volition bash our champion to support our prices arsenic debased arsenic possible, but fixed the magnitude of the tariffs, adjacent astatine the reduced levels announced this week, we aren't capable to sorb each the unit fixed the world of constrictive retail margins," McMillon said successful the company's net release. He added connected the net telephone that tariffs person already led to terms increases successful April and May.
The tariff interaction could seep backmost into the banal market.
"While we proceed to expect a scope of commercialized agreements to beryllium reached to prolong the tariff complaint astatine astir the level during the intermission period, ongoing uncertainty could trigger further bouts of marketplace volatility," Marcelli said.
Deere banal hits all-time precocious aft better-than-expected profit
Shares of Deere & Company (DE) jumped 5% connected Thursday, hitting all-time highs aft the tractor and tract mower shaper topped net expectations, contempt a nett diminution of 22% compared to the aforesaid play past year.
Investors breathed a suspiration of alleviation arsenic the results came successful amended than feared. Wall Street has been pointing to signs that the agriculture assemblage has bottomed aft trending little implicit the past 2 years.
Deere chopped its nett income outlook for the year, citing a "dynamic environment" and "heightened uncertainty."
As of Thursday, the banal was up astir 23% twelvemonth to date.
JPMorgan's Dimon connected anticipation of recession: 'I wouldn't instrumentality it disconnected the table'
Yahoo Finance's David Hollerith reports:
Read more here.
Trending tickers: UnitedHealth, Foot Locker, Walmart, Alibaba
These stocks are grabbing attraction for large headlines soon aft the opening doorbell connected Thursday. Check retired our trending tickers page for much movers.
UnitedHealth (UNH): Shares cratered arsenic overmuch arsenic 17% to hit their lowest level successful 5 years arsenic yet different antagonistic header hit. The Wall Street Journal reported that the wellness insurer is facing a DOJ transgression probe implicit imaginable Medicare fraud — a study that UnitedHealth called "deeply irresponsible".
Foot Locker (FL): The footwear chain's banal rocketed up implicit 80% connected quality of a $2.4 cardinal buyout by Dick's Sporting Goods (DKS). Shares successful Dick's sank 15% arsenic worries astir tariff risks to retailers inactive successful play.
Walmart (WMT): Shares successful America's biggest retailer reversed a premarket summation to commercialized 3% little aboriginal connected Thursday arsenic investors digested its archetypal 4th results. A bushed connected income was overshadowed by Walmart's informing that it volition person to pass the precocious costs of tariffs connected to customers successful the signifier of terms rises.
Alibaba (BABA): In different motion of retail assemblage pressure, Alibaba's US-listed banal dropped implicit 8% aft its quarterly gross missed estimates. The Chinese e-commerce person faces a terms warfare astatine location adjacent arsenic it grapples with tariff uncertainty.
Oil tumbles arsenic Trump hints US-Iran atomic woody is close
Oil prices slid arsenic overmuch arsenic 3% connected Thursday aft President Trump indicated the US was getting adjacent to reaching a atomic woody with Iran, a determination which would boost lipid supply.
West Texas Intermediate (CL=F) futures dropped to hover conscionable supra $61 per barrel. Brent crude (BZ=F), the planetary benchmark, besides tumbled to commercialized adjacent $64.
“We’ll spot what happens,” Trump said successful Doha, Qatar, during his Middle East sojourn connected Thursday. “But we’re successful precise superior negotiations with Iran for semipermanent peace. And if we bash that, it’ll beryllium fantastic.”
Iran, a cardinal subordinate of the Organization of Petroleum Exporting Countries (OPEC), produces much than 3 cardinal barrels of lipid per day.
S&P 500 connected gait to drawback 3-day rally
Stocks fell connected Thursday arsenic investors assessed retail income information and commentary from consumer-facing elephantine Walmart (WMT).
The S&P 500 (^GSPC) dropped astir 0.4%, connected gait to drawback a three-day triumph streak. The Dow Jones Industrial Average (^DJI) slid 0.5%.
The Nasdaq Composite (^IXIC) dropped astir 0.6%.
Energy-related stocks were the biggest decliners aft President Trump hinted that a atomic woody with lipid shaper Iran was near, which would apt boost the proviso of crude.
Retailer Walmart reported mixed net and said it would hike prices to navigate President Trump's tariffs.
Meanwhile, retail income slowed successful April arsenic Trump's tariffs weighed connected US consumers.
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Fed's Powell says US whitethorn beryllium entering play of much predominant and persistent 'supply shocks'
Yahoo Finance's Jennifer Schonberger reports:
Read more here.
Retail income dilatory sharply successful April arsenic pre-tariff spending burst reverses
Retail income slowed successful April arsenic Trump's tariffs weighed connected US consumers who pulled guardant spending connected immoderate cardinal categories into March up of these levies.
Headline retail income roseate 0.1% successful April, somewhat supra economists expectations for income to beryllium level month-on-month, and good beneath the 1.7% summation seen successful March, according to Census Bureau data.
The power radical successful Thursday's release, which excludes respective volatile categories and factors into the gross home merchandise (GDP) speechmaking for the quarter, fell 0.2%; power radical income had risen 0.5% successful March. Economists expected a 0.3% increase.
March income excluding car and state roseate 0.2%, beneath statement estimates for a 0.3% summation and a determination little from the 1.1% summation seen the period prior.
Walmart says it volition hike prices owed to tariffs
Walmart (WMT) shares roseate astir 2% premarket aft the institution reported mixed net and said it would hike prices to navigate President Trump's tariffs.
America's largest retailer has been seen arsenic well-positioned to upwind tariffs, arsenic astir 60% of its income are successful groceries, Yahoo Finance's Brooke DiPalma reported. Its size besides means it has leverage to negociate with suppliers to support prices low.
However, Walmart announced it would rise immoderate of its prices owed to tariffs.
"We volition bash our champion to support our prices arsenic debased arsenic possible," Walmart CEO Doug McMillon said successful the release. "But fixed the magnitude of the tariffs, adjacent astatine the reduced levels announced this week, we aren’t capable to sorb each the unit fixed the world of constrictive retail margins."
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Walmart's US same-store income bushed expectations with a 4.5% summation successful the archetypal quarter, led by spot successful wellness and wellness and groceries. Here's what the bellwether for retail reported connected the apical and bottommost lines:
Walmart reiterated its blimpish fiscal guidance for the year. It projected nett income to summation betwixt 3% and 4%.
Alibaba banal falls aft quarterly gross miss
Alibaba (BABA) banal dropped 5% earlier the doorbell connected Thursday aft missing quarterly gross estimates arsenic it adjusts strategies amid economical and commercialized challenges.
Reuters reports:
CoreWeave slides arsenic investors measurement $23 cardinal spending spree
Shares successful CoreWeave sank arsenic overmuch arsenic 8% aft the AI information halfway provider's plans for superior expenditure outstripped Wall Street forecasts.
Yahoo Finance's Laura Bratton reports:
Good morning. Here's what's happening today.
Foot Locker banal rockets 80% successful aftermath of Dick's $2.4B deal
Dick's Sporting Goods (DKS) has agreed to bargain Foot Locker (FL) for astir $2.4 billion, the companies said connected Thursday, confirming an earlier report of the woody by The Wall Street Journal.
Shares successful Foot Locker surged implicit 80% successful premarket, taking different limb higher from after-hours gains connected the confirmation of The Wall Street Journal's earlier report of the deal.
Big container retailer Dick's is offering $24 apiece for shares of its smaller footwear rival, a premium of 86% connected the stock's closing terms connected Wednesday, per Reuters.
Dick's banal dropped astir 9% earlier the doorbell arsenic investors assessed the move, which comes arsenic President Trump's tariffs airs proviso risks and uncertainty for retailers.
The Associated Press reported:
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