Stocks finished lower after a super-saturated day of data.
Earlier this week, stocks hit all-time highs again on Thursday.
Let’s head to the scoreboard:
- Dow: 18,517.27 (+0.06%)
- S&P 500: 2,161.47 (-0.10%)
- Nasdaq: 5,029.59 (-0.09%)
- WTI crude oil: $45.97 (+0.6%)
- 10-year Treasury yield: 1.587 (+3.7%)
1. Consumer prices rose less than expected. CPI rose 0.2% month-over-month and 1% year-over-year, below economists’ forecasts of a 0.3% increase month-over-month, and a 1.1% increase year-over-year, according to Bloomberg. Compared to the prior year, core CPI rose 2.3%, and 0.2% month-on-month. Notably, that rate compared to a year ago is above the Federal Reserve’s target of 2%, although it prefers to use personal consumption expenditures as a gauge of inflation.
2. Retail sales came in better than expected. Retail sales rose by 0.6% in June, above expectations of a 0.1% increase. Sales rose at most of the kinds of businesses tracked by the department, with a 1.1% increase in receipts at online merchants and a 0.7% increase at health and personal care outlets. Notably, Bloomberg News’ Matt Boesler pointed out on Twitter that US non-store retail sales grew at the fastest pace in the 12 months through June since 2006.
3. Industrial production rose less than expected. According to the Federal Reserve, industrial production rose 0.6% in June, above expectations of a 0.3% rebound. Capacity utilization increased to 75.4% from 74.9%, while robust auto production lifted the consumer durables category, as the output of consumer energy products also jumped.
4. The oil rig count rose for the 3rd straight week. The oil rig count rose by 6 to 357, according to oilfields services giant Baker Huges. Meanwhile, the gas rig count rose by 1 to 89, bringing the total up 7 to 447. The count has fluctuated in the last few weeks. It rose by the most in six months two weeks ago as crude oil prices above $50 per barrel encouraged some producers to bring rigs online.
5. Herbalife escaped being called a pyramid scheme, and its shared spiked. The Federal Trade Commission reached an agreement with Herbalife, that kept it from being labelled a pyramid scheme. The FTC opened a probe into the company after hedge fund manager Bill Ackman alleged that it operated like a pyramid scheme — which would be illegal. The shares jumped over 17% following the news Friday, rising to their highest level since early 2014.
6. Empire State Manufacturing slumped. Manufacturing activity in New York slumped unexpectedly. The general business conditions index for July came in at 0.55, below economists’ expectations of 5.00. The July number “indicates that business activity flattened out for New York manufacturers,” the report noted.
7. Citi beat on Q2 earnings. The firm reported adjusted earnings per share of $1.24 on revenue of $17.55 billion. Analysts were expecting adjusted earnings per share of $1.10 on revenue of $17.56 billion, according to Bloomberg.
8. Wells Fargo came in-line with expectations. The bank reported earnings per share of $1.01 on revenue of $22.2 billion. Analysts were expecting earnings per share of $1.01 on revenue of $22.21 billion, according to Bloomberg. Notably, during the bank’s conference call after the earnings release, CEO John Stumpf said that while there had been a significant increase in lending for certain types of CRE, the boom in apartment and condo building over the past few years may be tapped out.