Stock Fluctuate on Data That Suggest a Slowing Economic Recovery

Stocks traded mixed Friday after U.S. retail sales in July rose less than forecasts and investors continued to monitor the stalemate between lawmakers on further fiscal stimulus.

Stock Fluctuate on Data That Suggest a Slowing Economic Recovery

© TheStreet
Stock Fluctuate on Data That Suggest a Slowing Economic Recovery

Weaker-than-expected economic data from China, which included a surprise decline in retail sales for July, added to the cautious trading.


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The Dow Jones Industrial Average rose 19 points, or 0.07%, to 27,915, the S&P 500 was up 0.07% and the Nasdaq was down 0.28%.

The S&P 500 finished Thursday at 3,373.43, down 0.2%, but at one point during the session rose above its all-time close of 3,386.15 set in mid-February. The Dow declined 80.12 points, or 0.3%, to 27,896.72, while the Nasdaq rose 0.3%.

Retail sales in July increased 1.2% after jumping a revised 8.4% in June. Economists had expected sales in July to advance 1.9%.

Excluding autos and gasoline, retail sales rose 1.5%, ahead of estimates.

Though the increase in retail sales was lower than the previous two months, the data show “there is a willingness and a desire to spend,” according to Michelle Meyer, chief U.S. economist at Bank of America.

“There is no doubt the recovery in consumer spending has been robust,” Meyer added.

Consumer sentiment for August edged higher to 72.8 from 72.5 but remained weak and near coronavirus pandemic lows seen in April.

House Speaker Nancy Pelosi said Thursday that Democratic lawmakers and the White House remain “miles apart” in their stimulus talks. Senate lawmakers, meanwhile, followed House Democrats in adjourning for the summer break.

DraftKings DKNG, the sports-betting operator, reported a wider-than-expected second-quarter loss but beat Wall Street’s revenue expectations. The stock fell 4.48%.

While several major sports leagues remained on hiatus at the beginning of the quarter because of the coronavirus pandemic, the company said it “worked creatively to engage fans with new fantasy sports and betting products for Nascar, golf, Ultimate Fighting Championship, and European soccer.”

This article was originally published by TheStreet.

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