Marketbites: Salesforce Co-CEO Steps Down
MARKET PERFORMANCE:
Portfolio Manager Commentary:
The Dow Jones Industrial Average fell on Thursday, giving up some of the big gains seen on Wednesday as investors awaited jobs data coming today that could determine the pace of the Federal Reserve’s future rate tightening.
In corporate news, shares of Salesforce tumbled 8.3% – helping to drag down the Dow – after the software company said its co-CEO would be stepping down soon. Costco dropped about 6.6% after the pace of November sales slowed to a 5.7% gain from the prior year. In October, sales climbed 7.7% from a year ago. The November data is an ominous sign during the peak holiday selling season. The wholesale retailer also reported a 10.1% decline in e-commerce sales during the period.
Despite a bullish open on the back of a slightly better than expected inflation measure watched by the Federal Reserve, traders showed caution before the important jobs report releasing today. Economists polled by Dow Jones expect the U.S. added 200,000 jobs in November, which would be a decrease from the 261,000 gained in the prior month.
Chart of the Day:
U.S. households sharply boosted spending in October as the pace of underlying inflation eased. Personal spending increased 0.8% from the prior month, the Commerce Department said Thursday. The department’s inflation gauge—the personal-consumption expenditures price index—rose 6% in October compared with the same month a year ago, marking an easing from 6.3% in September.
Source: WSJ
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