US STOCKS-S&P 500 edges down, investors and consumers wary of inflation

KOSS

13/05/2024 19:48

* 
      GameStop rallies, sparks gains in other meme stocks 
    

        * 
      Alphabet slips as OpenAI to launch search competitor
    

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      Indexes: S&P 500 off 0.04%, Nasdaq adds 0.27%, Dow off
0.15% 
    

  
 (Updated prices at 02:20 p.m ET/ 1820 GMT)
    By Sinéad Carew and Sruthi Shankar
       May 13 (Reuters) - U.S. stock indexes were a mixed bag
on Monday, with the S&P 500 staying shy of its March record high
as investors waited for key inflation readings and earnings
reports due this week while a survey showed consumers concerned
about inflation. 
     A Federal Reserve Bank of New York survey, released on
Monday, found that Americans see inflation at 3.3% a year from
now from March’s 3% while they expect inflation three years from
now at 2.8%. On Friday, a University of Michigan report showed
U.S. consumer sentiment sagged to a six-month low in May as
households worried about the cost of living.
         The Nasdaq composite was advancing while the S&P 500
slipped. Both just finished three weeks of gains, boosted by
strong earnings reports, and signs of a cooling labor market
that fueled bets of one or two Federal Reserve rate cuts this
year.
    Investors on Monday were cautiously awaiting producer price
index data, consumer inflation data, retail sales data, weekly
jobless claims and earnings reports from big retailers including
Home Depot  HD.N  and Walmart  WMT.N  all due this week. 
        "Stocks are just kind of stuck in this really tight
trading range until we get some more information on inflation
trends," said Anthony Saglimbene, Ameriprise Chief Market
Strategist.
  
        With the New York Fed report and Friday's report showing
"a marked deterioration in consumer sentiment and rising
expectations around inflation" Saglimbene said this would put
even more weight on the inflation reports. 
  
        Core consumer prices are expected to have risen 0.3% on
a month-over-month basis in April and 3.6% on an annual basis
according to economist forecasts in a Reuters poll ahead of
Wednesday's release. 
        Federal Reserve Vice Chair Phillip Jefferson said he
supports keeping interest rates steady until it is clear that
price pressures are moderating. 
    At 02:20 p.m. the Dow Jones Industrial Average  .DJI  fell
60.35 points, or 0.15%, to 39,452.34, the S&P 500  .SPX  lost
1.90 points, or 0.04%, to 5,220.75 and the Nasdaq Composite
 .IXIC  gained 43.51 points, or 0.27%, to 16,384.38. 
    Of the 459 S&P 500 companies that reported through Friday,
77.3% beat analysts' profit estimates, according to LSEG data.
The long-term average is 66.7%. 
    Meanwhile, shares of videogame retailer GameStop  GME.N 
jumped 78% after "Roaring Kitty", a former marketer at an
insurance firm credited with sparking the 2021 meme stock rally,
returned to X.com after a three-year hiatus.
    Other highly shorted names also rallied with AMC  AMC.N  up
60% and Koss Corp  KOSS.O  adding 32%.   
    Alphabet  GOOGL.O  fell 0.4% as Microsoft-backed OpenAI
looked set to announce its artificial intelligence (AI)-powered
search product. Meta Platform  META.O  was down 2%. 
    Apple  AAPL.O  added 2% after a report said it had closed in
on an agreement with ChatGPT-maker OpenAI to use the startup's
technology on the iPhone.
    Advancing issues outnumbered decliners by a 1.31-to-1 ratio
on the NYSE where there were 280 new highs and 36 new lows. On
the Nasdaq, 2,380 stocks rose and 1,754 fell as advancing issues
outnumbered decliners by a 1.35-to-1 ratio. 

 (Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru;
Editing by Devika Syamnath and Shinjini Ganguli)
 ((sinead.carew@thomsonreuters.com; +13322191897;))