US: S&P ends modestly lower as rising Treasury yields offset robust retail data

[NEW YORK] The S&P 500 ended slightly down on Thursday, paring losses in late trading after unexpectedly strong retail sales data underscored the strength of the US economic recovery.

The three major indices spent much of the day in negative territory as rising US Treasury yields pressured market-leading tech stocks, and the rising dollar weighed on exporters.

Amazon.com, buoyed by solid online sales in the Commerce Department's report, helped push the Nasdaq into positive territory.

"Looking at today, clearly we had positive news from retail sales and it looks as if the massive slowdown in the economy is not materialising as a lot of people expected," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.

"It's a nice reminder that the economy is still taking two steps forward for each step back even amid the Covid concerns," Mr Detrick added.

Economically sensitive transports and microchips were among the outperformers.

Data released before the opening bell showed an unexpected bump in retail sales as shoppers weathered Hurricane Ida and the Covid Delta variant, evidence of resilience in the consumer, who contributes about 70 per cent to US economic growth.

"Once again, it shows the US consumer continues to spend and continues to help this economy grow," Mr Detrick said.

The Dow Jones Industrial Average fell 63.07 points or 0.18 per cent to 34,751.32; the S&P 500 lost 6.95 points or 0.16 per cent at 4,473.75; and the Nasdaq Composite added 20.40 points or 0.13 per cent at 15,181.92.

Eight of the 11 major sectors in the S&P 500 ended lower, with materials suffering the largest percentage drop.

The consumer discretionary spending sector posted the biggest gain, with Amazon.com doing the heavy lifting.

Apparel company Gap gained 1.6 per cent. Online marketplace Etsy and luxury accessory company Tapestry rose 3.1 per cent and 1.9 per cent, respectively.

Ford Motor rose 1.4 per cent after it announced plans to boost production of its F-150 electric pickup model.

Declining issues outnumbered advancing ones on the NYSE by a 1.27-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favoured advancers.

The S&P 500 posted nine new 52-week highs and one new low; the Nasdaq Composite recorded 82 new highs and 94 new lows.

Volume on US exchanges was 9.37 billion shares, compared with the 9.44 billion average over the last 20 trading days.

REUTERS