Stocks dropped to close lower yesterday with the Dow logging its worst daily loss since mid-October as investors grappled with the latest policy decisions by President Donald Trump. The Dow also dropped back below the 20,000 level. Wall Street is also looking ahead to a heavy week of economic data, corporate earnings and the latest meeting by the Federal Reserve set to begin Today.
Americans spent more on new cars and other big-ticket items in December to finish the year on an optimistic note, though a key level of inflation hit the highest level in more than two years. Consumer spending rose 0.5% last month, matching the estimate. That’s the biggest increase in spending in December since the last month of 2009, just as the U.S. began to emerge from the Great Recession.
Personal income advanced 0.3 percent last month after nudging up 0.1 percent in November. Wages and salaries rebounded 0.4 percent after slipping 0.1 percent in November. Income increased 3.5 percent in 2016 after rising 4.4 percent in 2015.
Shares of Fitbit Inc. plunged 17% to a record low yesterday after the company cut its fourth-quarter guidance and announced plans to lay off more than 100 workers. Following “weaker-than-expected” holiday sales, Fitbit said it expects an adjusted loss per share of 51 cents to 56 cents in the quarter. The company said it plans to lay off about 110 employees, or 6% of its workforce, as part of a restructuring of the business.
Shares of airline companies were knocked lower yesterday and are at a 2 month low amid concerns that the nationwide protests at airports in response to President Trump’s executive order to ban immigration from certain predominantly Muslim countries would curtail demand.
With Northwest Quadrant Wealth Management I’m Tyler Simones