NEW YORK — Wall Street’s rally ran out of momentum Tuesday, and stocks drifted lower a day after hitting their highest level since the start of August.
The S&P 500 slipped 9.19 points, or 0.2%, to 4,538.19 for just its third loss in the last 17 days. The Dow Jones Industrial Average dropped 62.75 points, or 0.2%, to 35,088.29, and the Nasdaq composite dipped 84.55 points, or 0.6%, to 14,199.98.
Retailers were mixed after several reported their earnings for the latest quarter and, more importantly, their forecasts for the upcoming holiday shopping season.
Lowe’s sank 3.1% despite reporting better profit for the latest quarter than analysts expected. Its revenue fell short of Wall Street’s estimates, and it also cut its forecasts for revenue and profit over the full year. Sales for do-it-yourself projects have been lower than expected at the home improvement retailer.
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Best Buy dipped 0.7% after likewise beating analysts’ expectations for profit in the latest quarter but falling short on revenue. Its CEO, Corie Barry, said demand from customers has been “more uneven and difficult to predict.” Best Buy cut its forecast for revenue for the full year, along with some other financial measures.
Specialist Dilip Patel, foreground, works with a colleague Nov. 1 on the floor of the New York Stock Exchange.
On the winning side of Wall Street was Dick’s Sporting Goods, which rose 2.2%. It delivered stronger profit and revenue for the third quarter than analysts expected, as customers bought more at each transaction and made more total purchases. The sporting goods retailer raised its forecasts for full-year results.
In stock markets abroad, indexes were mixed and made mostly modest moves across Europe and Asia.
U.S. retailers are closing out what’s been a mostly better-than-hoped earnings reporting season for the summer.
However, interest rates have been the much bigger factor moving the stock market recently. Stocks jumped on rising hopes that inflation cooled enough to make the Federal Reserve’s next move on interest rates a cut rather than a hike. The Fed yanked its main interest rate to its highest level since 2001 from virtually zero early last year, trying to slow the economy and hurt investment prices just enough to smother inflation without causing a painful recession.
Recent economic reports suggesting a slowdown in both inflation and the economic activity that could create more inflation pushed traders to move up expectations for when the Fed could begin cutting rates. That caused Treasury yields in the bond market to tumble.
The yield on the 10-year Treasury edged down to 4.41% from 4.42% late Monday. Just a few weeks ago, it was above 5%, at its highest level since 2007.
How to support small businesses this holiday season
How to support small businesses this holiday season
Are you ready for the holiday shopping season? You’re not alone: More than 9 in 10 U.S. consumers plan to celebrate winter holidays and are collectively poised to spend around $960 billion, according to National Retail Federation data.
The holidays are the most crucial time of year for many small businesses. Up to 65% of small business revenue comes during the holiday season, a 2022 Quickbooks survey shows. But NRF reports that just 1 in 4 U.S. holiday shoppers plan to do some holiday shopping at small businesses, which are typically defined as having fewer than 500 employees.
These small but mighty companies comprise 99% of businesses in the U.S., produce about 40% of the country’s GDP, and employ nearly half of workers in the private sector. They’re also an important part of local communities, too. Research consultancy firm Civic Economics shows that about $53 of $100 spent at independent businesses circulates within the local community, compared to less than $14 of $100 spent at larger chains.
With the average American intending to spend $875 on the holidays this year, there’s a lot of potential to reinforce the economic strength within communities if people shop small. To help people do this more intentionally, Next Insurance compiled tips and supporting data on ways to support small businesses this holiday season.
Buy gift cards
One of the easiest ways to support a local small business is buying a present that practically everyone welcomes: gift cards.
Over half of people want to receive gift cards this holiday season, according to NRF’s survey. Most small retail businesses sell gift cards for their shops, and shoppers can often order these online. While gift cards let recipients choose their exact present, they still can show that thought was put into personalizing the present—for example, a gift card to a local bookstore is perfect for an avid reader and one to a local nursery is ideal for those with green thumbs.
Gift cards can also provide an avenue to support local businesses that don’t offer physical items suitable for gifting, such as restaurants. They also allow for gifting experiences, such as tickets to a museum or an independent theater.
Attend a holiday market or bazaar
Ultrasmall companies and artisans often show up in a big way at local holiday markets, bazaars, and craft fairs. A quick search of “holiday markets near me” will usually produce expansive lists of local craft fairs throughout November and December.
Holiday markets offer a wide variety of goods and create a one-stop shop to support several small businesses at once. Even better, the host is often other local establishments, such as bars and breweries, cultural and visitor centers, or outdoors on streets or parks. Shoppers may also have the chance to grab a peppermint mocha or hot cider from vendors or nearby businesses to help get in the holiday spirit.
Post on social media
People can further support small businesses by sharing their work and engaging with them on social media. This strategy can take many forms: sharing a photo of a holiday display, participating in a giveaway, recommending or “unboxing” products in posts, or sharing and liking posts from local stores.
People giving presents from a small business can include a business card with the gift so the recipient knows where it came from—making it easy for them to tag the company on social media. Within communities, word-of-mouth and social media networks are a particularly effective way to build patronage of local businesses.
The U.S. Chamber of Commerce encourages people to use the #ShopSmall hashtag when sharing their experiences—particularly on Small Business Saturday, Nov. 25—to create a larger conversation and awareness about shopping small for the holidays.
Story editing by Jeff Inglis. Copy editing by Kristen Wegrzyn. Photo selection by Ania Antecka.
This story originally appeared on Next Insurance and was produced and distributed in partnership with Stacker Studio.
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