US stocks wobble; Gap, Nordstrom sinks on weak results :: WRAL.com

By DAMIAN J. TROISE, AP Business Writer

Shares were mixed on Wall Street on Wednesday as the market continues a tumultuous trading spell ahead of the Thanksgiving holiday in the US

The S&P 500 rose 0.1% as of 1:10 p.m. Eastern. The Dow Jones Industrial Average fell 32 points, or 0.1%, to 35,780 and the Nasdaq rose 0.2%.

Technology stocks pulled out of an early slide and were mixed. That helped stabilize the broader market. Computer maker HP rose 10.7% after solid financial results. Autodesk plunged 17.5% after the design software company warned investors that the pace of the recovery is being impacted by supply chain problems and inflationary pressures.

A mix of retailers that rely on direct consumer spending also turned choppy. Etsy’s online craft marketplace was up 6.4%. Gap plunged 23% after the clothing retailer said supply chain issues weighed on revenue and earnings in the third quarter. Department store operator Nordstrom collapsed 29% after reporting weak third-quarter results.

Energy stocks gained as crude oil prices remained relatively stable and natural gas prices rose. Devon Energy was up 3.8%.

Bond yields fell. The 10-year Treasury yield fell from 1.67% to 1.65% on Tuesday. That put pressure on banks, which depend on higher yields to charge more lucrative interest on loans. JPMorgan Chase fell 0.8%.

Supply chain problems and the pressures of inflation have been major concerns for a wide range of industries. Many companies have warned that they are struggling to meet demand and are dealing with higher raw material costs. Those higher costs are passed on to consumers, who have paid more for everything from food and other basic commodities to a wide variety of retail items.

You have an environment where the persistence of supply chain problems starts to wear off on people, said Eric Freedman, chief investment officer at US Bank Wealth Management.

Consumers have absorbed higher costs so far, but analysts are keeping a close eye on any potential slump in spending, especially as the main holiday season kicks off.

The latest consumer spending update shows a recovery from October, rising 1.3%, the Commerce Department said. That is slightly more than double the profit in September.

It was an otherwise quiet and short week for investors. The markets are closed on Thursdays for the Thanksgiving holiday and will close early on Fridays.

Investors received several positive economic updates on Wednesday.

The Commerce Department reported that the US economy slowed to a modest annualized growth rate of 2.1% in the October-December quarter, slightly ahead of initial estimates. But economists predict a solid recovery in the current quarter as long as soaring inflation and a recent rise in COVID cases don’t derail activity.

The Labor Department reported that the number of Americans filing for unemployment benefits fell last week to its lowest level in more than half a century, another sign that the US job market is rapidly recovering from last year’s recession caused by the coronavirus.

The Federal Reserve will release minutes of its October policy meeting later in the day, potentially giving investors more details about central banks’ plan to begin curbing bond purchases that have helped keep the bond yield low. interest rates.