Stocks are having another quiet morning as investors wait for the Federal Reserve to wrap up its last rate setting meeting of the year. There are virtually zero expectations for the Fed to take any rate action later this afternoon, but the market will still be interested to hear what the central bank has to say about the coming year. Meanwhile, trade headlines will continue to be the wildcard that could swing the averages in either direction with only four days left before President Trump's self-imposed December 15 deadline to enact the next tranche of promised tariffs on Chinese imports.
ECONOMIC EVENTS: In the U.S., the Consumer Prices Index report beat estimates for November with a 0.3% headline rise and a 0.2% core gain. The 12-month CPI rate of growth rose to 2.1% on the headline, while the core rate was steady with growth of 2.3% year-over-year. The Fed's FOMC resumed its two-day meeting, with a statement and economic projections due at 2 pm ET.
TOP NEWS: Shares of Home Depot (HD) have slid 2% after the company gave early 2020 guidance for 3.5%-4% comparable store sales growth and 14% EBIT margin. While Morgan Stanley analyst Simeon Gutman said he, and the buy-side, were already expecting below consensus guidance, Gutman "did not anticipate the magnitude of the miss relative to expectations," the analyst told investors following the company's release of its outlook in conjunction with its investor and analyst meeting.
Shares of Boeing (BA) are down 1% after Federal Aviation Administration chief Steve Dickson told CNBC this morning that regulators won't likely clear Boeing's 737 Max airplanes for flight until 2020. Dickson is testifying today before the U.S. House Transportation and Infrastructure Committee alongside Earl Lawrence, the FAA's aircraft certification chief, on the series of steps that must be completed before the agency will allow Boeing's grounded 737 MAX to resume flying.
Last night, Chevron (CVX) announced a 2020 organic capital and exploratory spending program of $20B. Additionally, Chevron said that a downward revision in its longer-term commodity price outlook as well as its "disciplined approach to capital allocation" are leading it to reduce funding to various gas-related opportunities including Appalachia shale, Kitimat LNG, and other international projects. The potential for divestments and the lowered oil price outlook will result in Chevron taking a non-cash, after tax impairment charges of $10B-$11B in its fourth quarter 2019 results.
Shares of GameStop (GME) are sliding after the video game retailer reported lower than expected quarterly results and cut its guidance for fiscal 2019. The company, which said it expects the trend of consumers delaying their spending in anticipation of new gaming console releases to continue until the fourth quarter of 2020, is seeing its shares fall 18% today following last night's earnings update.
MAJOR MOVERS: Among the noteworthy gainers was Mednax (MD), which rose 8.5% after the company said it welcomes "constructive dialogue" with Starboard Value, which reportedly has nominated a slate of directors at the healthcare services company. Also higher was Ollie's Bargain Outlet (OLLI), which gained 16% after reporting quarterly results. In addition, LogMeIn (LOGM) was 8% higher after Bloomberg reported that a private equity firm and hedge fund are teaming up in a bid to acquire the company.
Among the notable losers was Dave & Buster's (PLAY), which slid 5% after it reported quarterly results and narrowed its revenue guidance for fiscal 2019. Also lower after reporting quarterly results were United Natural Foods (UNFI) and The Children's Place (PLCE), which fell 26% and 23%, respectively.
INDEXES: Near midday, the Dow was down 34.17, or 0.12%, to 27,847.55, the Nasdaq was up 18.28, or 0.21%, to 8,634.46, and the S&P 500 was up 4.02, or 0.13%, to 3,136.54.
Home Depot
-4.24 (-1.96%)
Boeing
-4.46 (-1.28%)
Chevron
-0.94 (-0.80%)
GameStop
-1.18 (-18.15%)
Pediatrix Medical
+2.07 (+8.36%)
Ollie's Bargain Outlet
+10.13 (+16.80%)
LogMeln
+6.12 (+8.27%)
Dave & Buster's
-1.72 (-4.29%)
United Natural Foods
-2.6 (-26.32%)
Children's Place
-15.74 (-22.27%)