Wall Street stocks firmly lower at lunch on Friday as consumer data hits sentiment

12pm: US stocks seeing red

US stocks were seeing red at lunch on Friday as the mood turned sour on confidence in the economy.

The Dow Jones Industrial Average plunged over 98 points at 34,892; the S&P 500 shed around ten at 4,349. The tech-heavy Nasdaq fell over 34 points at 14,508.

Data from the University of Michigan’s index of consumer sentiment fell to 80.8 in July, while economists had expected a reading of 86.3. Reportedly, consumers are preparing for a 4.8% increase in the cost of living this year, which is the highest level since 2008.

“Hopes of a new in-session record high for the Dow have been dashed, with the index moving almost straight down from the opening print,” said Chris Beauchamp, chief market analyst at online trading group IG.

“Indices generally are in retreat, after a morning in which European markets had tried to hold relatively steady.

“But as the day has gone on the trickle of selling has turned into a flood, and points towards a tough end to the week. Bullish momentum in US markets has finally run out, having already dissipated earlier in the week for European stocks, as the usual weaker second-half of July takes over from the often-bullish first half.”

9.50am: Proactive North America headlines:

Alpine 4 Holdings Inc (OTCQB:ALPP) subsidiary Vayu Aerospace conducts successfully airframes demonstration for energy and mining customers

Marble Financial Inc (CSE:MRBL) (OTCMKTS:MRBLF) (FRA:2V0) joins the Financial Data and Technology Association for open banking advocacy

Nomad Royalty Company Ltd (TSE:NSR) (OTCQX:NSRXF) reveals preliminary 2Q revenue of US$4.6M on 2,577 gold equivalent ounces sold

The Parent Company (NEO:GRAM.U) (OTCQX:GRAMF) launching new cannabis delivery hub in San Diego utilizing Caliva’s platform

Byrna Technologies Inc (NASDAQ:BYRN) (CSE:BYRN) prices its $52.5M upsized equity offering

Fobi AI Inc (CVE:FOBI) (OTCQB:FOBIF) executes several pilot tests and has 10.42M in funding as it plans to uplist to major exchange

PyroGenesis Canada Inc (TSE:PYR) (NASDAQ:PYR) (FRA:8PY) boss to sell small portion of company shares via automatic securities disposition plan

Elys Game Technology Corp (NASDAQ:ELYS) (NEO:ELYS) to debut its new US retail sports betting platform at National Indian Gaming Association Trade Show in Las Vegas

9.40am: Wall Street starts positively

The main indices on Wall Street opened in positive territory on Friday after US retail sales unexpectedly rose in June.

Shortly after the opening bell, the Dow Jones Industrial Average was up 0.14% at 35,035 while the S&P 500 climbed 0.3% to 4,373 and the Nasdaq rose 0.5% to 14,615.

The positive open followed data that showed US retail sales increased 0.6% in June in contrast to the 0.4% decline predicted by analysts, although data for May was revised to show a 1.7% decline as opposed to the previous 1.3% decrease.

The increase is likely to boost optimism for a US economic recovery and that consumer activity picked up in the second quarter.

8:10am: Wall Street to start slightly higher

Wall Street is expected to start slightly higher on Friday morning as investors await the latest batch of US retail sales data.

Futures markets are pointing towards a 0.1% rise for the Dow Jones Industrial Average and S&P 500, with the Nasdaq seen edging up 0.2%.

“Looking ahead, US stocks are pointing to a mildly stronger start after a mixed close in the previous session. In fact, trading across the week has been a mixed picture as investors weigh up the Fed’s assurance of loose monetary policy against high and rising inflation,” said market analyst Sophie Griffiths at Oanda.

“Attention will be firmly on US retail sales data and Michigan consumer confidence for further clues over the health of the US economy. Expectations are for another contraction in retail sales after a disappointment last month, which could weigh on sentiment.”

Shares in Intel Corp (NASDAQ:INTC) are expected to see a step up as the WSJ reports that the chip designer and maker is in talks to buy semiconductor manufacturer GlobalFoundries Inc for about US$30bn.

Also making the news stateside is a survey from Reuters indicating that President Biden will reappoint current Fed boss Jerome Powell for another term, from February next year.

Four things to watch for on Friday:

• Companies in the earnings diary at the end of the week include banking group State Street Corp (NYSE:STT), transport firm Kansas City Southern (NYSE:KSU) and housebuilder NVR Inc (NYSE:NVR)
• Shares in vaccine maker Moderna Inc (NASDAQ:MRNA) could also be in focus as the company prepares to join the S&P 500
• Memestocks AMC Entertainment Inc (NYSE:AMC) and GameStop Corp (NYSE:GME) could also see a revival of fortunes at the end of a bruising week for the Reddit favourites
• On the macro front, aside from US retails sales there will also be new consumer sentiment and inflation expectations data

Story by ProactiveInvestors