Stock Market Update: Dow Climbs 100 Points as Retail Sales Tumble in January

Written By Michael Gary Scott

The U.S. stock market displayed optimism on Thursday morning, following the release of crucial economic reports.

After the market opening on Thursday, the Dow surged by 0.26% to 38,525.18 while the NASDAQ experienced a marginal rise of 0.01% to 15,860.35. The S&P 500 also joined the rally, gaining 0.19% to 5,010.23.

 

Performance of Different Sectors

 

Real estate shares witnessed a 0.9% increase on Thursday, contributing to the market’s positive momentum.

Conversely, communication services shares declined by 0.4% during the trading session.

 

Top Headline for Investors

 

A significant report indicated a startling 0.8% month-over-month decrease in U.S. retail sales in January, following a revised 0.4% increase in December, falling short of market estimates of a 0.1% decline.

 

Notable Gainers in the Equities Market

 

JX Luxventure Limited JXJT shares skyrocketed by a staggering 365% to $6.05 after unveiling robust H1 results.

Shares of Dunxin Financial Holdings Limited DXF witnessed a substantial surge of 270% to $1.35, following a 5% gain on Wednesday.

Nano-X Imaging Ltd. NNOX shares also ascended, registering a 79% increase to $11.35. Nvidia disclosed a significant 59,632 share stake in Nano X Imaging, fueling market enthusiasm.

 

Notable Losers in the Equities Market

 

Earlyworks Co., Ltd ELWS shares dropped by a striking 39% to $0.80.

Shares of Treasure Global Inc. TGL declined by 36% to $0.1011 following the release of second-quarter results.

Renalytix Plc RNLX experienced a 28% decrease to $0.8699 after reporting weak quarterly sales, eliciting concern among investors.

 

Commodity Market Overview

 

In commodity news, oil retreated by 1.2% to $76.95. Meanwhile, gold witnessed a slight decrease of 0.1% settling at $2,004.50.

Silver, on the other hand, rose by 1.2% to $22.425, while copper experienced a minor decline of 0.3% to $3.6985.

 

Market Performance in the Euro Zone

 

European shares displayed a mixed trend, with the eurozone’s STOXX 600 gaining by 0.50%, London’s FTSE 100 rising by 0.75%, and Spain’s IBEX 35 Index falling by 0.09%. Notably, the German DAX, French CAC 40, and Italy’s FTSE MIB Index experienced gains of 0.38%, 0.68%, and 0.63% respectively.

The Eurozone recorded a trade surplus of €16.8 billion in December as opposed to a year-ago deficit of €8.5 billion. Furthermore, Spain witnessed a consumer price inflation spike to a three-month high of 3.4% year-over-year in January.

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The UK faced economic challenges, as the country’s economy expanded by a mere 0.1% in 2023, marking the weakest performance since 2020. Labor productivity in the UK declined by 1.0% on quarter in the fourth quarter, although industrial production reported a 0.6% month-over-month increase in December. The UK’s trade deficit also shrank to £2.603 billion in December, as opposed to a revised £3.723 billion in the previous month.

 

Market Dynamics in the Asia Pacific Region

 

Asian markets concluded on a positive note, with Japan’s Nikkei 225 surging by 1.21%, Hong Kong’s Hang Seng Index rising by 0.41%, China’s Shanghai Composite Index gaining by 1.28%, and India’s S&P BSE Sensex witnessing an ascent of 0.32%.

India reported a trade deficit of $17.5 billion in January, compared to a year-ago gap of $17.03 billion. Amidst this, total passenger vehicle sales in the country rose by 13.9% year-over-year to 339,441 for January. Japan’s industrial production growth was revised lower to 1.4% month-over-month from the initial reading of a 1.8% increase. Furthermore, the country’s economy posted a contraction of 0.4% on an annualized basis in the fourth quarter.

 

Important Economic Indicators

 

Key economic indicators pointed to a mixed picture, as the NY Empire State Manufacturing Index surged to -2.4 in February, an impressive improvement from -43.7 in the previous month. Similarly, the Philadelphia Fed Manufacturing Index witnessed a significant spike of 16 points to a reading of 5.2 in February, defying market expectations of -8.

Export prices in the U.S. experienced a noteworthy 0.8% month-over-month increase in January, while import prices also climbed by 0.8%. Additionally, U.S. initial jobless claims showed a decline of 8,000 from the revised reading of the previous week to 212,000 during the period ending Feb 9, surpassing market expectations of 220,000.

The unwelcome news of U.S. retail sales plunging by 0.8% in January, as opposed to a revised 0.4% increase in December, failed to meet market estimates of a 0.1% fall, sending ripples through the investor community.

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