Stocks falter as retail earnings emerge

US stocks faltered Monday but ended the day lower as Wall Street waited another round of earnings and key data from retail.

The S&P 500 (^GSPC) was down 0.9% on the day, while the Dow Jones Industrial Average (^DJI) fell by 0.6% or more than 200 points. The tech-heavy Nasdaq Composite (^IXIC) fell by 1.1%.

Stocks had ended theirs last week biggest profits for months, as lighter inflation data is raising investor hopes of an imminent monetary policy shift. The S&P 500 is up nearly 6%, while the Nasdaq is up about 8% this week.

Treasury yields rose on Monday and the dollar remained firm after comments over the weekend from Federal Reserve Governor Christopher Waller, who said the central bank had “a long way to go” with rate hikes.

“It doesn’t end in the next one or two meetings,” he said.

The comments echoed Fed Chair Jerome Powell’s aggressive comments earlier this month and reinforcement from other colleagues who also reiterated that the rate hikes are far from over.

A few individual stocks that were trending at Yahoo Finance on Monday:

  • Tyson Foods (TSN): The beef and poultry producer reported quarterly earnings that fell short of expectations, while sales rose above forecasts as the hyper-inflationary environment weighed on margins.

  • Oatly Group AB (TRAIN): The Swedish maker of oat-based dairy products posted a bigger-than-expected loss in the third quarter and sales that fell short of estimates.

  • AMC Entertainment Holdings, Inc. (AMC): That said AMC managing director Adam Aron on Thursday Yahoo Finance Live that the company will continue to accept cryptocurrencies despite the collapse of FTX. The stock is down over 72% this year.

  • SNDL Inc. (SNDL): That Liquor and cannabis retailer has a third quarter loss, compared to earnings in the same quarter last year.

  • Amazon (AMZN): Amazon plans to lay off around 10,000 employees in what would be the largest layoff in the company’s history. according to reports. The mass layoffs could begin as early as this week and will focus on Amazon’s device organization, retail division and human resources division. The move also follows Facebook parent Meta (META), Twitter and other tech companies that Thousands of employees laid off this month. Amazon shares fell more than 2% on Monday.

  • Hasbro (HAS): Hasbro shares fell after Bank of America analysts downgraded the stock to underperform from buy. The company said it was destroying “the long-term value” of its Magic: The Gathering card game.

Walmart (WMT), Target (TGT) and The Home Depot (HD) are among the big companies set to release their third-quarter financial results this week.

Data from FactSet Research shows that as of Friday, 91% of companies in the S&P 500 reported third-quarter earnings, with 69% reporting actual earnings per share above the median estimate — below the five-year average of 77%, which beat it.

Also on Wall Street’s plate is another round of economic data, including the monthly Retail Sales report, which is due out on Wednesday. Economists polled by Bloomberg are forecasting a 1% rise after spending in October unexpectedly flat in September as consumers retreated from high-end items amid high inflation and rising interest rates.

Wall Street strategists have also started releasing their forecasts for 2023, along with Morgan Stanley chief US equity strategist Mike Wilson see more rough spots ahead.

“Although its base 2023 year-end target price of 3,900 is about where the market is currently trading, it will not be a smooth ride,” strategists led by Wilson wrote in 2023 US Equities Outlook: The Note Road Not Taken “. “From what remains of this current tactical rally, [Wilson] sees the S&P 500 pricing in earnings risk of 23 above a low of ~3k to 3300 sometime in the 123rd quarter.”

Elsewhere, President Joe Biden met with Chinese leader Xi Jinping Monday as the US seeks to forge a stronger alliance with nations that can help deter China from taking military action against Taiwan.

Meanwhile, the cryptocurrency world continued to witness a fast-moving sequence of events. The collapse of FTX International has threatened losses for both large and small investors FTX files for bankruptcy in a stunning fall for a crypto empire on Friday. The episodes continued over the weekend. FTX investigated a potential hack and asked customers to stay away from the site while crypto exchanges Crypto.com sent to $405 million to the wrong recipient. Bitcoin fell 0.7% to $16,246.64 by the end of U.S. trade on Monday amid FTX’s deepening troubles.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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