Wall Street retreats as retail sales growth slows
By Ambar Warrick and Medha Singh (Reuters) - The S&P 500 slipped further away from record levels on Friday as domestic retail sales growth slowed in July, adding to worries about a wobbly post-pandemic economic recovery in the absence of a new U.S. fiscal stimulus bill
By Ambar Warrick and Medha Singh
(Reuters) - The S&P 500 slipped further away from record levels on Friday as domestic retail sales growth slowed in July, adding to worries about a wobbly post-pandemic economic recovery in the absence of a new U.S. fiscal stimulus bill.
Technology <.SPLRCT> led declines among the 11 major S&P indexes, while the real estate sector <.SPLRCR> — commonly considered defensive — outperformed.
Aggressive stimulus measures have helped Wall Street's three main indexes bounce from a coronavirus-driven crash in March, and the S&P 500 briefly traded above its Feb. 19 record close for a second straight day on Thursday.
But the benchmark index has struggled to top its all-time high of 3,393.52, also hit on Feb. 19, as the domestic economy continues to struggle.
Data on Friday showed U.S. retail sales increased less than expected last month and could slow further due to spiraling COVID-19 cases and a reduction in unemployment benefit checks. The figures also came on the heels of data suggesting a slowdown in China's nascent rebound.
"The state of the consumer and the ability and the interest to spend is going to be key in self sustaining the economic recovery," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
A deadlock between top Democrats and the White House over more stimulus measures to support the economy has also been a major point of focus.
Uncertainty over the timing of an agreement has undercut sentiment in recent sessions, with the upcoming U.S. presidential elections expected to add another layer of caution.
At 10:00 a.m. ET, the Dow Jones Industrial Average <.DJI> was down 71.07 points, or 0.25%, at 27,825.65, the S&P 500 <.SPX> was down 0.90 points, or 0.03%, at 3,372.53, and the Nasdaq Composite <.IXIC> was down 3.31 points, or 0.03%, at 11,039.19.
Applied Materials Inc
The Philadelphia chip index <.SOX> rose 0.8%.
Electric car maker Tesla
Chinese search engine giant Baidu Inc
Shares of iQIYI dropped 10.2%.
Declining issues outnumbered advancers 1.54-to-1 on the NYSE and 1.69-to-1 on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low, while the Nasdaq recorded 25 new highs and five new lows.
(Reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Arun Koyyur and Uttaresh.V)
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