Stocks fell on Monday at the start of a short Thanksgiving holiday week as traders eagerly awaited speeches from the Federal Reserve and earnings reports.
The Dow Jones Industrial Average fell 100 points, or 0.31%, but was slightly offset by shares of Disney, which jumped 8.7% after news that Bob Iger will replace Bob Chapek as CEO. The S&P 500 lost 0.62% and the Nasdaq Composite fell 1.07%.
Investors have been reflecting on the strength of a recent bear market rally, which began earlier in the month with the reading of the October consumer price index and gained momentum with the reading of last week on wholesale prices.
Last week, traders were stymied by messages from Federal Reserve officials, who were less impressed with the numbers and reassessed their optimism about the possibility of slowing inflation. The market will get more information on the central bank’s way forward to digest when Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard speak on Tuesday.
Retail sales rose in October, but at the corporate level, Target reported slowing demand and Amazon announced it would lay off 10,000 employees – although Home Depot and Walmart posted strong results.
“With 375 basis points of Fed rate hikes so far, an inverted yield curve, inflation spikes and commodity prices still part of the story, we can almost conclude that we are behind. in the economic cycle,” Liz Young, SoFi’s chief investment strategist, said in a note over the weekend.
This week, short due to the Thanksgiving holiday, investors will be busy with another retail income group. Best Buy, Nordstrom, Dick’s Sporting Goods and Dollar Tree are among the businesses on deck.