U.S. Stocks Slide Amid Lacklustre Sales, Jobs Data
Thursday, January 12, 2022 12:53 PM

U.S. stocks slipped in midday trading as weak economic data overshadowed reports of successful bond auctions in Italy and Spain.

S&P 500 Index lost 0.06 percent to trade at 1,291.65. The Dow Jones Industrial Average fell 0.19 percent to trade at 12,426.11. The Nasdaq Composite Index edged 0.20 percent higher.

On the economic front, the Labor Department reported that the number of Americans who continued to receive jobless benefits rose more than expected. Jobless claims rose 24,000 to 399,000 last week from a revised 375,000 in the previous period, while economists projected an advance to 375,000. The four-week moving average for claims increased 7,750 to 381,750 last week.

Meanwhile, sales at the U.S. retailers rose less-than-anticipated to 0.1 percent in December from a 0.2 percent advance in the previous month, also below economists' expectations of a 0.3 percent gain.

In corporate news, Chevron Corp. (NYSE: CVX) dropped 2.4 percent to $105.13 after the company warned that fourth quarter earnings will be "significantly below" the prior quarter levels. Third quarter earnings included foreign exchange gains of nearly $450 million, compared to a loss anticipated in the fourth quarter, it said.

Williams-Sonoma Inc. (NYSE:WSM) tumbled 12.9 percent to $34.04 after the retailer of home products cut its fourth quarter earnings view, citing more promotional pricing environment during the holiday season. The San Francisco, California-based company now expects earnings per share in the range of $1.10 to $1.15 from prior expectations of $1.15 to $1.20. Revenue is now projected to be between $1.235 billion and $1.255 billion from $1.24 billion to $1.265 billion estimated earlier.

Sears Holdings Corp. (NASDAQ:SHLD) fell 4.1 percent to $31.52 on media reports that New York-based CIT Group Inc. has decided to stop financing loans to suppliers for their shipments to the retailer.

Wynn Resorts Ltd. (NASDAQ: WYNN) dropped 4.3 percent to $107.11 after reports that the company's  Vice Chairman and largest shareholder Kazuo Okada is suing the company to get it disclose more about its finances. Okada says in the suit that “despite several written demands, Wynn Resorts insists on keeping its books and records hidden” from him, according to the Las Vegas Review-Journal.

Big 5 Sporting Goods Corp. (NASDAQ:BGFV) plunged 14.04 percent to $8.14 after the company revised down its quarterly earnings view, saying the holiday selling period was below expectations. It now expects earnings per share in the range of $0.02 to $0.05 for the fourth quarter, down from prior forecast of $0.12 to $0.24. For the fourth quarter, the company posted flat net sales of $226.7 million, while same store sales decreased 2.1 percent.

Dick's Sporting Goods Inc. (NYSE: DKS) jumped 10.7 percent to $40.30 after the company announced it will buyback shares worth for up to $200 million. It also revised its fourth quarter earnings forecast, in line with Wall Street projections. The company now expects fourth quarter earnings per share in the range of $0.87 to $0.88 from prior expectations of $0.87 to $0.89, while analysts expect $0.87 a share. It also expects same store sales to be slightly negative to slightly positive compared to its prior outlook of flat to an increase of 1 percent.

The euro gained 0.89 percent to 1.2820 against the dollar, while the greenback lost 0.14 percent against the yen.

Crude oil futures strengthened 1.23 percent to $102.11/barrel, while gold futures rose 0.83 percent.

The European markets ended on a mixed note on disappointing economic data from the U.S. The announcements that Spain sold 10 billion euros ($13 billion) of bonds and Italy sold 12 billion euros of bills failed to enthuse the investor sentiment. The European Central Bank left interest rates unchanged. U.K. FTSE 100 lost 0.21 percent, German DAX30 rose 0.43 percent and French CAC 40 declined 0.09 percent.