LIVE MARKETS-Wall Street eases early after retail sales

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WALL STREET EASES EARLY AFTER RETAIL SALES

The three major U.S. stock indexes are lower in early trading Tuesday, with investors weighing stronger-than-expected U.S. retail sales data and the outlook for U.S. interest rate cuts.

Investors are expecting the Federal Reserve to cut rates by 25 basis points when it announces its policy decision Wednesday, but they are worried about the outlook for rate cuts in 2025 if the U.S. economy looks stronger than initially thought.

Tuesday's data showed U.S. retail sales rose in November amid an acceleration in motor vehicle purchases.

But Brian Jacobsen, chief economist at Annex Wealth Management, noted: "The strongest categories in November were some of the weakest in October. Many categories that were treading water in October took a dip in November."

He says: "Don't expect the retail sales bounce to continue."

Most S&P 500 .SPX sectors are lower in early trading, with energy .SPNY down the most. Technology .SPLRCT is also among weaker groups in early trade. Defensive staples .SPLRCS is posting a modest gain, while healthcare .SPXHC is up slightly, with shares of Pfizer PFE.N gaining after giving a 2025 forecast.

Here is the morning market snapshot:

(Caroline Valetkevitch, Chuck Mikolajczak)

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