Wall Street pulled back on Thursday as investors evaluated key economic indicators ahead of the Federal Reserve's meeting next week.
A Thursday Labor Department report showed U.S. producer prices rose more than forecast in November, though a moderation in service costs pointed to a continuation of the broader disinflationary trend. Initial claims for U.S. unemployment benefits unexpectedly climbed last week, raising concerns about labor-market resilience.
Market Snapshot
The Dow Jones Industrial Average fell 234.44 points, or 0.53%, to 43,914.12, the S&P 500 lost 32.94 points, or 0.54%, to 6,051.25 and the Nasdaq Composite lost 132.05 points, or 0.66%, to 19,902.84.
Market Movers
Broadcom Inc., a chip supplier for Apple Inc. and other big tech companies, rallied 13.85% in late trading after predicting a boom in demand for its artificial intelligence chips.
ServiceTitan Inc. shares climbed 42% above their initial public offering price after the residential and commercial repair software company raised $624.8 million.
Tesla shares were down 1.6% to $418.10, after rising Wednesday by 5.9% to $424.77 to set an all-time closing high. Coming into Thursday, shares of the electric-vehicle maker had risen for six consecutive sessions, gaining 21% over the period. They have gotten a boost -- jumping about 69% -- since Donald Trump was elected U.S. president on Nov. 5. Investors believe CEO Elon Musk's relationship with Trump will benefit the EV company.
Alphabet fell 1.8% on Thursday. The stock set a record closing high on Wednesday at $195.40 after the parent company of Google announced Gemini 2.0, an update to the company's flagship artificial-intelligence model. Alphabet said developers will be the first to have access to Gemini 2.0, with general availability in January.
Adobe tumbled 14% after the software company and creator of apps such as Photoshop and Illustrator posted fiscal fourth-quarter adjusted earnings and revenue that beat analysts' estimates but issued first-quarter and fiscal-year revenue guidance below expectations. Adobe anticipates revenue in the first quarter of between $5.63 billion to $5.68 billion, below consensus of $5.72 billion. The company expects fiscal 2025 revenue of between $23.3 billion and $23.6 billion, which is below estimates of $23.8 billion.
Warner Bros. Discovery rose 15% after the entertainment company said it was restructuring into two divisions, one focused on the legacy cable TV business and the other on streaming and studios.
Uber Technologies rose 0.4% after shares of the ride-hailing company declined 5.8% on Wednesday following an announcement from General Motors that it would be scrapping its Cruise robotaxi program. Uber had announced in August that would it be partnering with GM to bring Cruise autonomous vehicles to the Uber platform. The partnership was expected to launch in 2025.
Ciena soared 15%. The optical networking equipment company reported fiscal fourth-quarter adjusted earnings that missed analysts' estimates but revenue of $1.12 billion that topped consensus estimates of $1.1 billion, and said it expects fiscal 2025 revenue to rise 8% to 11%.
Nordson, the maker of adhesives and other industrial products, said it expects fiscal first-quarter adjusted earnings of $1.95 to $2.15 a share, below consensus of $2.26, on revenue of $615 million to $655 million, below forecasts of $681.9 million. Shares declined 8.2%.
Celsius Holdings rose 7.5% to $31.99 after shares of the energy drink company were initiated at Overweight by J.P. Morgan with a price target of $37.
Oxford Industries, the owner of Tommy Bahama, Lilly Pulitzer and Johnny Was, reported a third-quarter loss and cut its fiscal-year outlook, saying "several years of high inflation combined with distractions from the U.S. elections and other world events, led to less frequent and more tentative consumer spending behavior during the third quarter." Oxford reported an adjusted loss of 11 cents, well off analysts' estimates that called for adjusted profit of 9 cents. Shares of Oxford fell 8.6%.
Riot Platforms rose 4.8% after The Wall Street Journal reported that activist Starboard Value has built a significant position in the Bitcoin miner and was pushing for changes. The report cited people familiar with the matter.
Market News
Trump Advisers Seek to Shrink or Eliminate Bank Regulators
The Trump transition team has started to explore pathways to dramatically shrink, consolidate or even eliminate the top bank watchdogs in Washington.
In recent interviews with potential nominees to lead bank regulatory agencies, Trump advisers and officials from his newfound Department of Government Efficiency have, for example, asked whether the president-elect could abolish the Federal Deposit Insurance Corp., people familiar with the matter said.
Advisers have asked the nominees under consideration for the FDIC, as well as the Office of the Comptroller of the Currency, if deposit insurance could then be absorbed into the Treasury Department, some of the people said.
China Vows Bigger Fiscal Spending to Boost Consumption Next Year
China signaled more public borrowing and spending in 2025 with a shift of policy focus to consumption, in an effort to repair the economy’s weak link as looming US tariffs threaten exports.
Top officials vowed to raise the fiscal deficit target next year in an announcement made following a two-day huddle of the Central Economic Work Conference in Beijing, according to the state-run Xinhua News Agency. For only the second time in at least a decade, they made “lifting consumption vigorously” and stimulating overall domestic demand their top priority.
