U.S. stocks opened mostly lower as consumer-focused companies continued to report earnings and investors awaited minutes from the Federal Reserve’s last meeting.
The S&P 500 gave back 11 points, or 0.2%, to open near 6,400, while the Dow Jones Industrial Average added 57 points, or 0.1%, to about 44,979. The Nasdaq continued its losing streak, opening down 94 points or 0.4%, near 21,221.
Large retailer earnings can provide a window into how tariffs are affecting companies and consumer spending. Recent retail sales data showed consumers continued to spend last month, but another report signaled waning consumer sentiment and a pick up in inflation worries.
Economic news
Minutes from the Fed’s last policy meeting are due in the afternoon, and investors will get a glimpse into how the discussion over keeping rates unchanged went and what could flip some members towards a rate cut next month. Governors Christopher Waller and Michelle Bowman voted against the central bank’s decision to keep rates steady between 4.25%-4.50% last month. It was the first time since 1993 that two governors dissented.
The main event, though, comes at the end of the week with Fed Chair Jerome Powell’s speech at the annual Jackson Hole Economic Symposium of global central bankers and finance chiefs. Investors will be looking for hints Powell may be done waiting to see tariff effects before cutting rates again.
Many economists expect Powell to suggest he’s open to a rate cut but fall short of signalling one is coming. Nevertheless, the CME FedWatch tool that shows the likelihood that the Fed will change rates at each policy meeting based on market trading suggests an 86.5% chance of the Fed easing rates in September.
The yield on the 10-year U.S. Treasury note was unchanged near 4.30% in the morning.
Corporate news
Retail bellwether Target announced results that beat analyst expectations, and announced a new CEO, but shares sank 10% after the opening bell.
La-Z-Boy missed adjusted earnings per share estimates in the first three months of its fiscal quarter and gave a sales outlook for the current quarter that fell below expectations. Shares slid nearly 15%.
Toll Brothers’ fiscal third-quarter results topped forecasts. The stock ticked lower after the opening bell.
James Hardie’s results in the first three months of its fiscal year missed estimates. Shares of the building materials manufacture slid 31%, the most since at least 1973.
More: Mortgage rates are at a 10-month low. They probably won’t last long.
Cryptocurrency
Wyoming became the first state to launch a stablecoin. Its version, the Frontier Stable Token, is designed to offer instant transactions and reduced fees for consumers and businesses. It will be backed by dollars and short-term Treasuries, and available on several blockchains, including Arbitrum, Avalanche, and Ethereum.
This article originally appeared on USA TODAY: US stocks mostly lower amid tepid retail earnings, Fed on tap
