Wall Street closed lower as investors digested the economic data

(Reuters) – Wall Street closed lower on Friday as investors assessed economic data and awaited a possible 50 basis point rate hike by the US Federal Reserve at next week’s policy meeting, while apparel company Lululemon pulled back after a disappointing earnings forecast. .

Data showed US producer prices rose slightly more-than-expected in November amid a jump in service costs, but the trend moderated, with annual factory-gate inflation posting its smallest increase in 1-1/2 years.

“Today’s data shows that inflation is coming down, but it’s staying and it’s more steady than most people think,” said Anthony Saglimben, senior market analyst at Ameriprise Financial in Troy, Michigan. However, in December, consumer confidence improved, while inflation expectations fell to a 15-month low, a University of Michigan survey showed.

Futures trading indicates a 77% chance that the Fed will raise interest rates by 50 basis points next week, with a 23% chance of a 75 basis point hike, with those odds changing slightly after Friday’s economic data.

Consumer price data for November, due on Tuesday, will provide fresh clues to the central bank’s monetary tightening plans.

Lululemon Athletica Inc (LULU.O) It fell nearly 13% after the Canadian sportswear maker forecast lower-than-expected quarterly revenue and profit.

Netflix company (NFLX.O) It gained 3.1% after Wells Fargo upgraded the streaming video giant to “overweight” from “equal weight.”

The S&P 500 fell by 0.73%, ending the session at 3,934.38 points.

The Nasdaq index fell by 0.70%, to 11,004.62 points, while the Dow Jones Industrial Average fell by 0.90%, to 33,476.46 points.

Of the 11 S&P 500 sector indices, 10 energy-led indexes fell lower. (.SPNY)down 2.33%, followed by a 1.28% loss in healthcare (.SPXHC).

The energy index recorded its seventh consecutive session of losses, the longest losing streak since December 2018, as oil prices seemed poised for weekly losses amid recession fears.

Wall Street’s major indexes fell this week after posting consecutive weekly gains. Investors are weighed down by fears of a possible recession next year due to the extension of the central bank’s interest rate hike.

Over the course of the week, the S&P 500 fell 3.4%, the Dow lost 2.8% and the Nasdaq fell 4%.

US stocks ended their recent losing streak on Thursday after data showed that initial jobless claims rose modestly last week.

Broadcom Corporation (AVGO.O) It jumped 2.6% after the chipmaker forecast revenue for the current quarter was higher than Wall Street estimates.

Boeing rose 0.3 percent after Reuters reported that the planemaker plans to announce a deal with United Airlines. (UAL.O) Orders for the 787 Dreamliner next week.

Declines outnumber gainers within the S&P 500 (.AD.SPX) by 3.3 to one.

S&P 500 records 5 new highs and 1 new low; The Nasdaq index posted 54 new highs and 213 new lows.

Trading volume on US stock exchanges was relatively light, with 9.9 billion shares changed hands, compared to an average of 10.9 billion shares during the previous 20 sessions.

Additional reporting by Sruthi Shankar, Anika Biswas and Yohan M. Cherian in Bengaluru, and Noel Randwich in Oakland, California; Editing by Vinay Dwivedi, Sriraj Kaluvella, Shonak Dasgupta and Aurora Ellis

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