Closing Update: U.S. Markets Slip A Second Day After May Consumer Spending Lags Expectations

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Stocks declined Thursday for a second straight day following below-consensus economic data, including weaker than expected household spending. Consumer stocks and utilities led the markets lower, although energy stocks continued to outperform as crude oil prices pushed past $106 per barrel amid ongoing conflict in Iraq.

The Commerce Department this morning said retail sales increased 0.3% during May, the fourth consecutive month of gains but trailing an upwardly revised 0.5% gain (from the 0.1% rise initially reported) in April and lagging the market consensus looking for a 0.7% advance.

Excluding autos, spending rose 0.1% last month compared with expectations for a 0.4% gain.

Also today, the Labor Department said reported 317,000 first-time unemployment claims for the week ended June 7, slightly above the 315,000 market consensus. Continuing claims rose to 2.614 million from 2.603 million in the prior report.

Export prices, excluding agriculture, climbed 0.1% in May following a 1.2% drop during the prior month. Excluding oil, import prices were unchanged for the second month in a row.

Crude oil for July delivery surged $2.13 to settle at $106.53 per barrel while July natural gas added 3 cents to $4.76 per 1 million BTU. August gold rose $13 to $1,274.10 per ounce with July silver adding 36 cents, settling at $19.53 per ounce. July copper slipped 2 cents to $3.02 per pound.

Here's where the U.S. Markets stood at end-of-day:

Dow Jones Industrials Average down 110.79 (-0.66%) to 16,733.09

S&P 500 down 14.95 (-0.77%) to 1,928.94

Nasdaq Composite index down 40.77 (-0.94%) to 4,291.16

GLOBAL SENTIMENT

Hang Seng Index down 0.35%

Shanghai China Composite Index down 0.16%

FTSE 100 Index up 0.06%

UPSIDE MOVERS

(+) RH, Q1 adjusted EPS of $0.18 beats by $0.07 per share. Revenue rises 21.6% to $366.3 mln, topping estimates by $19.45 mln. Raises FY15 EPS outlook, topping Street by at least $0.03. Also boosts revenue projection above consensus.

(+) LIVE, Reports 244% increase in website visits during the first week of a 35-city advertising campaign promoting over 10,000 meal specials at restaurants compared with the same seven-day period last month.

(+) MSLI, Announces $22.1 mln bought-deal financing with underwriters purchasing 13 mln shares at $1.70 apiece, a 4.3% premium over Wednesday's closing price. Proceeds will be used for future acquisitions and general working capital.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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