Stocks fell lower on Thursday as Salesforce dragged the broader market lower as it posted its worst trading day in nearly two decades. The Dow Jones Industrial Average dropped 300 points, while the S&P 500 Index and Nasdaq Composite lost 0.6% and 1%, respectively.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Zoom In:
Bank of America
Moynihan highlights that consumer spending via card payments, checks and ATM withdrawals has grown roughly 3.5% so far this year to about $4 trillion, well below the nearly 10% growth rate seen in May 2023.
"Both of our customer bases [consumers and businesses] that have a lot to do with how the American economy runs are saying, 'You know what? I'm being careful, slowing things down,'" Moynihan said.
In Economic News:
First Quarter U.S. Real GDP accelerated at a 1.3% annualized rate, according to a Commerce Department report on Thursday, below the initial 1.6% estimate. The downward revision stemmed from a reduction in consumption, from 2.5% in the first estimate to 2% in the first revision.
Initial Unemployment Claims totaled 219,000 for the week ended May 25, the Labor Department reported Thursday, up 3,000 from the previous period. Continuing jobless filings, which runs a week behind, ticked higher to 1.791 million.
Pending U.S Home Sales declined 7.7% in April compared to March, the National Association of Realtors reported Thursday, marking its slowest pace since April 2020. Signed sales contracts on existing homes were also 7.4% lower than in April 2023.
"The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market," said Lawrence Yun, chief economist for the NAR. "But the Federal Reserve's anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply."
On the Earnings Front:
Salesforce
Kohl's
"While spending among our high-income customers has remained steady, our middle-income customer continues to be impacted," CEO Tom Kingsbury said in a statement.
Dollar General
"Our customer continues to be very value-driven, and we anticipate they will continue to be price-sensitive as we move through the year," CEO Kelly Dilts saind in a statement.
For Friday:
All eyes will be on April's personal consumption expenditures (PCE) index reading due out Friday morning.