U.S. stocks started and ended the day little changed but closed out the week in the green as investors powered through hot inflation reports, the postponement of reciprocal tariffs and weak retail sales.
The broad S&P 500 index dipped 0.0072%, or 0.44 points, to 6,114.63, just shy of its record high hit three weeks ago; the blue-chip Dow fell 0.37%, or 165.35 points, to 44,546.08; and the tech-heavy Nasdaq gained 0.41%, or 81.13 points, to 20,026.77. The benchmark 10-year yield dipped to 4.478%.
Data this morning showed consumers sharply curtailed their spending in January, indicating a potential weakening economy, according to the Commerce Department. Retail sales slipped 0.9% in January from an upwardly revised 0.7% gain in December, and below the Dow Jones estimate for a 0.2% decline.
However, economists say don’t be alarmed. The economy is still chugging along and the decline is more a reflection of wildfires and winter storms keeping people home as well as consumers taking a break after spending strongly during year-end holidays.
“Don’t freak out, folks, monthly economic indicators are often volatile during natural disasters and bad winter weather,” said Bill Adams, Comerica’s chief economist. “Retail categories where consumers can put off purchases for a few weeks took a hit in January. Retail sales will likely recover in coming months as Californians pick up the pieces and as winter weather affects the Midwest and East Coast less.”
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