Wall Street Ends Mixed as Traders Await Jobs Report; Housing Stocks Shine on Lower Yields

U.S. stocks saw uneven trading ahead of key labor data, with the Dow inching higher while the S&P 500 and Nasdaq slipped. Falling Treasury yields lifted housing and utility shares, even as retail sales stagnated and brokerage stocks retreated.

The Dow inched up 52.27 points (0.1%) to 50,188.13, but the S&P 500 fell 23.01 points (0.3%) to 6,941.81 and the Nasdaq slid 136.20 points (0.6%) to 23,102.47.

Choppy trading continued on Wall Street as investors stayed cautious ahead of the Labor Departments delayed monthly jobs report, expected Wednesday. The report, postponed due to last weeks brief government shutdown, is projected to show U.S. employment rising by 70,000 in January after a 50,000 gain in December, with the unemployment rate steady at 4.4%.

 

Traders largely ignored Commerce Department data showing retail sales were flat in December, falling short of expectations for a 0.4% rise after a 0.6% gain in November. Nationwide Chief Economist Kathy Bostjancic noted that consumers paused spending after strong holiday shopping in prior months but expects higher tax refunds and continued wealth effects to lift Q1 spending and support GDP growth.

Housing stocks substantially moved upside amid a notable decrease by treasury yields, driving the Philadelphia Housing Sector Index up by 3.4% to a five-month closing high. Utilities and commercial real estate stocks also turned in strong performances, with the Dow Jones Utility Average jumping by 1.9% and the Dow Jones U.S. Real Estate Index climbing by 1.3%. Brokerage stocks moved sharply lower on the day, dragging the NYSE Arca Broker/Dealer Index down by 2.5%. The index ended the previous session at a record closing high. Computer hardware, airline and oil service stocks also showed notable moves to the downside over the course of the session.

Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index surged by 2.3%, while Hong Kong's Hang Seng Index advanced by 0.6%. The major European markets turned in a mixed performance on the day. The French CAC 40 Index inched up by 0.1%, the German DAX Index edged down by 0.1% and the U.K.'s FTSE 100 Index fell by 0.3%.

In the bond market, treasuries moved notably higher after closing roughly flat for two straight sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.1 bps to a nearly one-month closing low of 4.14%.

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