U.S. stocks fell Wednesday, with investors digesting more corporate earnings as well as disappointing growth data.
By 09:35 ET (14:35 GMT), the Dow Jones Industrial Average was down 205 points, or 0.5%, S&P 500 traded 13 points, or 0.3%, lower and NASDAQ Composite dropped 65 points, or 0.4%.
GDP data, PCE inflation in focus
Investors remain concerned about the possibility that the Federal Reserve will keep interest rates at elevated levels for a prolonged period of time, and thus the focus this week has been on a string of key economic readings that could dictate Fed thinking going forward.
Data released earlier Wednesday showed that the U.S. economy grew at a solid clip in the fourth quarter amid strong consumer spending, but it appears to have lost some speed early in the new year.
Gross domestic product increased at a 3.2% annualized rate last quarter, revised slightly down from the previously reported 3.3% pace, and a drop from 4.9% growth the prior quarter.
That said, the PCE price index, the Fed’s preferred inflation gauge, is the week’s most widely-waited release on Thursday, given that it is likely to factor into the central bank’s outlook on interest rates.
A string of Federal Reserve officials are also set to speak in the coming days, after several officials reiterated that the bank was in no hurry to begin loosening monetary policy.
Beyond Meat surges on strong earnings
Fourth-quarter earnings have continued to emerge, as the season draws to a close.
TJX Companies (NYSE:TJX) stock fell 0.2%, in volatile trading, after the retailer reported higher-than-anticipated sales growth in the fourth quarter, but offered up soft future guidance.
Salesforce (NYSE:CRM) heads the billing after the close with its quarterly numbers.
Elsewhere, Beyond Meat Inc (NASDAQ:BYND) surged over 55% after reporting better-than-expected quarterly earnings, and also forecasting stronger margins.
E-commerce site eBay (NASDAQ:EBAY) rose 6% on stronger-than-expected earnings, while Ambarella (NASDAQ:AMBA) rose 8% on a smaller-than-expected loss.
On the other hand, online dating company Bumble (NASDAQ:BMBL) lost 10% on weak revenue guidance, while Urban Outfitters (NASDAQ:URBN) slid 8% on disappointing earnings.
Crude falls on large U.S. inventories build
Oil prices edged higher Wednesday, as traders digested the weaker than expected U.S. GDP data as well as a hefty rise in U.S. crude inventories.
By 09:35 ET, the U.S. crude futures traded 0.6% higher at $79.33 a barrel, while the Brent contract climbed 0.3% to $82.88 a barrel.
Data from the American Petroleum Institute, released on Tuesday, showed U.S. crude oil inventories grew by 8.4 million barrels in the week to Feb. 22, much more than analyst expectations for a build of 1.8 million barrels.
The official inventory data are due later in the day, and have somewhat diverged from the API data in recent weeks.
Additionally, gold futures fell 0.1% to $2,042.60/oz, while EUR/USD traded 0.2% lower at 1.0825.
(Ambar Warrick contributed to this article.)
https://www.investing.com/news/stock-market-news/us-stock-futures-inch-lower-ahead-of-more-cues-on-rates-inflation-3317549
