Wall Street mixed; Dow pressured by selloff in Salesforce shares

  • Salesforce drops co-CEO exit plan
  • Dollar General falls on the reduction of its annual profits
  • U.S. manufacturing declines for the first time in 2.5 years in November
  • Indices: S&P 500 -0.09%, Nasdaq +0.14%, Dow -0.59%

Dec 1 (Reuters) – Wall Street was mixed on Thursday as a selloff by Salesforce weighed on the Dow Jones, as traders digested U.S. data suggesting Federal Reserve interest rate hikes are working .

On Wednesday, the S&P 500 jumped more than 3% on optimism that the Fed could moderate its interest rate hike campaign.

U.S. manufacturing activity shrank for the first time in 2.5 years in November as higher borrowing costs weighed on demand for goods, the data showed, evidence that Fed rate hikes have cooled the economy. ‘economy.

Additionally, the Personal Consumption Expenditure (PCE) price index rose 0.3%, similar to September, and in the 12 months to October, the index rose 6.0% after having increased by 6.3% the previous month.

Excluding the volatile food and energy components, the PCE price index rose 0.2%, a tenth less than expected, after gaining 0.5% in September.

“On a normal day this morning’s data package would be quite risky, but after yesterday’s rally I think it’s not good enough to push another leg higher,” said analyst Ross Mayfield. investment strategy at Baird. Wednesday’s rally propelled the S&P 500 index (.SPX) above its 200-day moving average for the first time since April after Fed Chairman Jerome Powell said it was time to slow the pace of interest rate hikes.

Traders now see a 79% chance that the Fed will raise its key rate by 50 basis points in December and a 21% chance that it will raise rates by 75 basis points.

Salesforce Inc. (CRM.N) fell 9.4% after the software maker announced that Bret Taylor would step down as co-chief executive in January.

Dollar General Corp. (DG.N) fell 8.1% after the discount retailer cut its full-year profit forecast, while Costco Wholesale Corp (COST.O) fell 6.3% after the members-only retail chain reported slower sales growth in November.

In afternoon trading, the S&P 500 was down 0.09% at 4,076.38 points.

The Nasdaq gained 0.14% to 11,483.66 points, while the Dow Jones Industrial Average fell 0.59% to 34,384.99 points.

Of the 11 S&P 500 sector indices, nine fell, led by financials (.SPSY)down 0.91%, followed by a 0.75% loss in real estate (.SPLRCR).

A Labor Department report on Thursday showed initial claims for state unemployment benefits fell from a seasonally adjusted 16,000 to 225,000 for the week ended Nov. 26.

Investors are now awaiting nonfarm payrolls data on Friday for clues as to how the rate hikes have affected the labor market.

Declining stocks outnumber rising stocks in the S&P 500 (.AD.SPX) by a ratio of 1.1 to one.

The S&P 500 posted 30 new highs and no new lows; the Nasdaq recorded 90 new highs and 59 new lows.

Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru and Noel Randewich in Oakland, California; Editing by Shounak Dasgupta and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

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