US Stocks Decline, Dow Falls Over 200 Points, Retail Sales Beat Estimates

The Dow Jones index fell by over 200 points on Tuesday, with the Dow trading down 0.5% to 43,498.72. The NASDAQ fell 0.55% to 20,062.78, and the S&P 500 dropped 0.49% to 6,044.48. However, health care shares rose by 0.3%, and U.S. retail sales rose 0.7% month-over-month in November, above market estimates of 0.5%. Stocks like Portage Biotech, Syntec Optics Holdings, and Tonix Pharmaceuticals Holding Corp. saw significant gains, while Vaccinex, Digital Brands Group, and Tenaya Therapeutics experienced declines.

The Dow Jones Industrial Average (DJIA) experienced its longest losing streak since 1978, with the index falling for nine consecutive days as of December 13, 2022 [1]. This downturn precedes the highly anticipated Federal Reserve interest-rate decision.

The DJIA lost 267 points, or 0.6%, on December 13, bringing the index down to 43,498.72 [1]. The S&P 500 and Nasdaq Composite also experienced declines, with the S&P 500 dropping 0.4% and the Nasdaq Composite dipping 0.3% [2]. However, it is worth noting that the Nasdaq Composite managed to hit a fresh record on December 12, 2022 [2].

The prolonged losing streak has raised concerns among investors, with many attributing the decline to a range of factors, including ongoing uncertainty regarding the Federal Reserve's interest-rate decisions and geopolitical tensions [2]. Additionally, market breadth, which measures the number of advancing and declining stocks, has been predominantly negative for the past 12 days, with the majority of stocks in the S&P 500 experiencing declines [1].

Despite the overall market downturn, certain sectors and individual stocks have bucked the trend. For example, healthcare shares experienced a 0.3% increase on December 13, 2022 [1]. Additionally, retail sales in the United States rose 0.7% month-over-month in November, exceeding market expectations of a 0.5% increase [1].

Some notable gains on December 13, 2022, include Portage Biotech, Syntec Optics Holdings, and Tonix Pharmaceuticals Holding Corp., while Vaccinex, Digital Brands Group, and Tenaya Therapeutics experienced declines [1].

As the end of 2022 approaches, investors remain focused on the Federal Reserve's interest-rate decision, which is scheduled to take place at the conclusion of the central bank's final two-day policy meeting on December 14, 2022. Traders are currently pricing in a 95% chance of a quarter-point cut during this meeting [2]. However, insights into future policy moves from the meeting and Chair Jerome Powell's press conference following the meeting are expected to be key focal points for Wall Street.

References:

[1] Barron's. (2022, December 13). Dow Falls Over 200 Points, Marks Longest Losing Streak Since 1978. https://www.barrons.com/livecoverage/stock-market-today-121724/card/dow-falls-over-200-points-marks-longest-losing-streak-since-1978-UoTRWn7mBWgWzFfmRq1I

[2] NBC Chicago. (2022, December 13). Stock Futures Fall After Dow Notches Longest Losing Streak Since 2018. https://www.nbcchicago.com/news/business/money-report/stock-futures-are-flat-after-dow-notches-longest-losing-streak-since-2018-live-updates/3625773/