FYI: U.S. stocks swung between small gains and losses Thursday as upbeat data on Americans’ spending habits helped to ease investors’ fears about a possible recession.
The latest retail-sales data showed consumer spending, which accounts for more than two-thirds of U.S. economic activity, remains a pillar of domestic growth, even as other parts of the economy falter and the outlook overseas darkens.
The Dow Jones Industrial Average added 99 points, or 0.39%, after earlier rising as much as 133 points. The S&P 500 edged up 0.25%, and the Nasdaq Composite fell 0.09%. The moves come a day after all three major indexes dropped about 3% and the Dow industrials suffered their biggest decline of the year.
Strong results from retail giant Walmart added to the upbeat sentiment ahead of the crucial holiday shopping season. Walmart shares jumped 4.7%.
Several other retailers, including Target , Home Depot and Lowe’s , are scheduled to report earnings next week, providing a clearer picture of the broader health of the sector.
Despite the positive signals from the retail space, investors continue to grapple with signs of a diverging U.S. economy. Industrial output fell in July, as the manufacturing sector continued to struggle with trade-related headwinds, the Federal Reserve said Thursday.
Meanwhile, disappointing data out of Germany and China on Wednesday sparked growth fears, and the bond market sent an ominous signal when 10-year and two-year Treasury yields inverted for the first time since 2007—often a precursor to a recession.
The yield on the benchmark 10-year Treasury note extended its decline, touching 1.497% after hitting 1.574% Wednesday. Yields fall as prices rise.
On the trade front, China said earlier Thursday that it plans to push back against proposed U.S. tariffs. The U.S. decision to levy new tariffs “severely violated” the consensus reached previously between President Trump and President Xi Jinping, China’s Customs Tariff Commission of the State Council said in an online post, citing an unnamed official.
Among individual stock movers, networking-equipment giant Cisco Systems fell 9% on a disappointing forecast for the current quarter, and General Electric dropped 13% after a research report alleged the struggling conglomerate has masked the depths of its problems, resulting in inaccurate and fraudulent financial filings with regulators.
Elsewhere, Stoxx Europe 600 slipped 0.3%. Stocks in China had rebounded from early declines. The Shanghai Composite rose 0.3%, while Hong Kong’s Hang Seng gained 0.4%. Japan’s Nikkei 225 shed 1.3%.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-08-15/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/stock-futures-erase-gains-after-china-vows-retaliation-for-us-tariffs-2019-08-15/printWSJ:
https://www.wsj.com/articles/global-stocks-fall-on-recession-fears-11565843140Bloomberg:
https://www.bloomberg.com/news/articles/2019-08-14/stock-rout-to-spread-to-asia-amid-economic-worries-markets-wrap?srnd=premiumIBD:
https://www.bloomberg.com/news/articles/2019-08-14/stock-rout-to-spread-to-asia-amid-economic-worries-markets-wrap?srnd=premiumCNBC:
https://www.cnbc.com/2019/08/14/dow-futures-fall-50-points-at-open-as-sell-off-triggered-by-bond-recession-signal-drags-on.htmlReuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-higher-on-strong-retail-sales-data-idUSKCN1V519ZU.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-plunges-to-six-month-low-on-chinas-trade-threat-idUKKCN1V50MEEurope:
https://www.reuters.com/article/us-europe-stocks/trade-worries-plague-european-shares-ftse-underperforms-idUSKCN1V50MMAsia:
https://www.cnbc.com/2019/08/15/asia-stocks-august-15-bonds-us-china-trade-currencies-in-focus.htmlBonds:
https://www.cnbc.com/2019/08/15/us-bonds-30-year-treasury-yield-falls-below-2percent-for-first-time-ever.htmlCurrencies:
https://www.cnbc.com/2019/08/15/forex-markets-us-treasury-yield-curve-in-focus.htmlOil:
https://www.cnbc.com/2019/08/15/oil-markets-global-economy-crude-inventories-in-focus.htmlGold:
https://www.cnbc.com/2019/08/15/gold-markets-us-bond-markets-global-economy-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
