Wobbly start on Wall StreetMajor stock gauges try to rise as investors weigh strong retail sales report versus Fed expectations; AMD shares plunge.NEW YORK (CNNMoney.com) -- Stocks struggled early Friday as investors welcomed a robust reading on December retail sales, but held back amid concerns that a stronger economy means the Federal Reserve won't cut interest rates soon. The Dow Jones industrial average (down 11.70 to 12,503.28, Charts) hovered near unchanged in the early going after ending the previous session at its highest point ever. The Nasdaq (up 2.60 to 2,487.45, Charts) composite added a few points after ending the previous session at its highest point since Feb. 2001. The broader S&P 500 (up 0.76 to 1,424.58, Charts) index struggled to move higher after ending the previous session just short of a more than six-year high. Falling oil prices and strength in technology propelled the stock market Thursday, boosting the major gauges to multi-year highs. But early Friday trading was more tentative, as investors focused on the economy. December retail sales rose 0.9 percent, the government reported Friday morning, topping forecasts for a rise of 0.7 percent. Sales excluding autos rose 1 percent in the month, beating economists' bets for a rise of 0.5 percent. The report confirmed the strength in other recent readings, serving to reassure investors that the economy is slowing, but not heading for recession, as had been feared in recent months. Yet, signs of a strong economy would seem to diminish the likelihood of the Federal Reserve cutting interest rates in the near term, which could disappoint some investors. Treasury prices slumped on bets that the Fed won't budged soon, boosting the yield on the benchmark 10-year note to 4.76 percent from 4.73 percent late Thursday. Bond prices and yields move in opposite directions. In currency trading, the dollar gained versus the yen and euro, strengthening after the release of the retail sales numbers. U.S. light crude oil for February delivery rose 20 cents to $52.08 a barrel in electronic trading. Oil prices have been sliding since the start of the year in response to warm northeast weather and decreased worries about a supple shortage. Among stock movers, Advanced Micro Devices (down $1.46 to $18.72, Charts) slumped after warning that fourth-quarter revenue won't meet estimates. |
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