US stocks tumbled on Monday but ended the day lower as Wall Street awaited another round of earnings and key data from the retail sector.
The S&P 500 (^GSPC) fell 0.9% on the day, while the Dow Jones Industrial Average (^DJI) fell 0.6%, or more than 200 points. The tech-heavy Nasdaq Composite (^IXIC) fell 1.1%.
Stocks had finished last week with their biggest gains in months, with softer inflation data raising hopes among investors that a change in monetary policy is near. The S&P 500 rose nearly 6%, while the Nasdaq gained about 8% on the week.
Treasury yields rose on Monday and the dollar held firm after comments over the weekend from Federal Reserve Governor Christopher Waller, who said the central bank still had “some way to go” with interest rate hikes. ‘interest.
“It’s not going to end in the next meeting or two,” he said.
The comments echoed hawkish remarks this month from Fed Chairman Jerome Powell and reinforcement from other colleagues who also reiterated that rate hikes were far from over.
A few individual stocks that were trending on Yahoo Finance on Monday:
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Tyson Foods (TSN): The beef and poultry producer reported quarterly profits below expectations, while sales beat forecasts as the sharply inflationary environment weighed on margins.
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Oatly AB Group (FORM): The Swedish oat-based dairy maker posted a bigger-than-expected loss and revenue in the third quarter, below estimates.
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AMC Entertainment Holdings, Inc. (CMA): AMC chief executive Adam Aron told Yahoo Finance Live on Thursday that the company will still accept cryptocurrencies, despite the collapse of FTX. The stock has fallen more than 72% this year.
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SNDL Inc. (SNDL): The The alcohol and cannabis retailer posted a loss in the third quarter, compared to profit in the year-ago quarter.
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Amazon (AMZN): Amazon plans to lay off around 10,000 employees in what would be the biggest cut in the company’s history, according to reports. The massive layoffs could begin as early as this week and will focus on Amazon’s device organization, retail division and human resources department. The move also follows Facebook’s parent company Meta (META), Twitter and other tech companies laying off thousands of employees this month. Amazon stock fell more than 2% on Monday.
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Hasbro (HAS): Shares of Hasbro fell after analysts at Bank of America downgraded the stock from a buy to an underperformer. The concern cited that the company 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 financials this week.
Data from FactSet Research shows that on Friday, 91% of S&P 500 companies reported third quarter earnings, with 69% reporting actual earnings per share above the average estimate – below the five-year average of 77% which has beaten.
Also on Wall Street’s plate is another round of economic data, including the monthly retail sales report released Wednesday. Economists polled by Bloomberg predict an overall 1% increase for October after spending was surprisingly flat in September as consumers pulled back on big-ticket items amid high inflation and rising interest rates.
Wall Street strategists have also started to release their outlook for 2023, with Morgan Stanley’s chief U.S. equity strategist Mike Wilson forecasting more trouble ahead.
“While his base price target of 3,900 for the end of 2023 is roughly in line with the current market situation, it will not be smooth sailing,” the Wilson-led strategists wrote in “2023 US Equities Outlook: The Note on the Road Not Taken.” After what remains of this ongoing tactical rally, [Wilson] sees the S&P 500 discounting earnings risk by 23 in the 123rd quarter via a price low of around 3,000 to 3,300.”
Elsewhere, President Joe Biden met with Chinese leader Xi Jinping on Monday as the United States tries to strengthen its alliance with nations that could discourage China from taking military action against Taiwan.
Meanwhile, the cryptocurrency world continued to see a rapid sequence of events. The collapse of FTX International threatened investors big and small with losses, with FTX filing for bankruptcy on Friday in a stunning fall for a crypto empire. The fallout continued over the weekend. FTX probed a potential hack and asked customers to stay off the website, while crypto exchange Crypto.com sent $405 million to the wrong recipient. Bitcoin fell 0.7% to $16,246.64 at the end of Monday’s US trading session amid growing FTX woes.
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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