By Dhirendra Tripathi
Investing.com -- Stocks are ending September with a thud on despite an agreement in Washington that averts a federal government shutdown.
The S&P 500 fell again and with a half-hour of trading left, was on track to break a seven-month streak of gains as investors worried about everything from inflation to the lasting effect the pandemic has had on employment and confidence.
Despite that, the Commerce Department revised second-quarter growth slightly higher from an earlier reading.
Rising rates have beaten down once high-flying tech stocks as investors ditch growth in favor of value. According to Reuters, excluding Netflix (NASDAQ:NFLX), the rate-sensitive FAANG stocks have lost a combined $415 billion in value this month. Netflix is on track to gain 8% for the month.
Retailers struggling with supply chain bottlenecks continue to draw scrutiny. The whole sector has been disrupted not only by pandemic shutdowns but by difficulties getting products on shelves and stocked in warehouses.
Kohls Corp (NYSE:KSS) stock plunged 14% on Thursday after BofA analyst Lorraine Hutchinson lowered the stock’s rating by two notches due to supply chain issues. Hutchinson pointed out that the retailer’s top-selling active brands like Nike Inc (NYSE:NKE), Under Armour Inc A (NYSE:UAA) and Adidas AG (DE:ADSGN) are facing supply chain issues. She said the product flow remains slow and warned investors to brace for a difficult second half.
Here are three things that could affect markets tomorrow:
1. Personal income
U.S. personal income is likely to have grown at a slower pace in August compared to July. According to estimates tracked by Investing.com, it is seen growing by 0.3% in August compared to the 1.1% rise in the previous month.
2. And spending
The pace of growth in personal spending in the U.S. is likely to have quickened to 0.6% in August from July’s 0.3%. The data on both come out at 8:30 AM ET (1230 GMT).
3. Michigan sentiment reading
Consumer sentiment in the U.S. is likely to have remained unchanged in September to stay close to a near-decade low. The University of Michigan’s data on consumer sentiment will be released Friday at 10:00 AM ET, and that’s likely to throw up the index number of 71, the same as August.