Stock Indexes Settle Lower on Tech Weakness

Economic Indicators - US November PPI final demand rose by +3.0% year-over-year, exceeding expectations of +2.7% [1] - US November retail sales increased by +0.6% month-over-month, stronger than the anticipated +0.5% [4] - US December existing home sales rose by +5.1% month-over-month to a 2.75-year high of 4.35 million, surpassing expectations of 4.22 million [5] - US MBA mortgage applications surged by +28.5% in the week ended January 9, with the purchase mortgage sub-index up +15.9% and refinancing mortgage sub-index up +40.1% [5] Stock Market Performance - The S&P 500 Index closed down -0.53%, the Dow Jones down -0.09%, and the Nasdaq 100 down -1.07% [4] - Weakness in chip makers and the Magnificent Seven technology stocks negatively impacted the broader market [3][15] - Energy producers saw gains, with WTI crude oil reaching a 2.5-month high, benefiting companies like ConocoPhillips and Marathon Petroleum [18] Company-Specific Developments - Rivian Automotive closed down more than -7% after UBS downgraded the stock to sell from neutral with a price target of $15 [20] - Bank of America fell more than -3% after reporting Q4 FICC trading revenue of $2.52 billion, below the consensus of $2.62 billion [21] - LyondellBasell Industries rose more than +6% after Citigroup removed its downside catalyst watch due to improved polyethylene prices [22] Global Market Context - European government bond yields decreased, with the 10-year German bund yield falling to 2.814% [13] - Mixed performance in overseas stock markets, with the Euro Stoxx 50 down -0.41% and Japan's Nikkei Stock 225 up +1.48% [10]