Stocks fell on Monday during the start of a short Thanksgiving week as traders looked forward to letters from the Federal Reserve and earnings reports.
The Dow Jones Industrial Average lost 100 points, or 0.31%, but was slightly offset by Disney shares, which rose 8.7%. After it was announced that Bob Iger would replace Bob Chapek as CEO. The S&P 500 fell 0.62% and the Nasdaq Composite fell 1.07%.
Investors have been pondering the strength of the recent rally in the bear market, which kicked off earlier in the month with the October CPI reading and gained some steam with last week’s wholesale price reading.
Traders last week paused for messages from Fed officials, who were less impressed with the numbers, and reassessed their optimism about the possibility of a slowdown in inflation. The market will get more information about the central bank’s future course of digestion when Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard speak on Tuesday.
Retail sales increased in October, but companywide, Target reported slowing demand and Amazon announced it would lay off 10,000 employees — though Home Depot and Walmart delivered strong results.
“With 375 basis points of Fed rate hikes so far, an inverted yield curve, sharp rises in inflation, and commodity prices still part of the narrative, we can all conclude that we’re late in the economic cycle,” Liz Young, SoFi’s chief investment strategist, said in a statement. note this weekend.
This week, which is a short week due to the Thanksgiving holiday, investors will be busy with another batch of retail earnings. Best Buy, Nordstrom, Dick’s Sporting Goods, and Dollar Tree are among the companies on deck.
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