Major indices are moving lower and facing a broad retreat following this morning’s economic data. Overall, the weakness is not concentrated on the AI trade, but reflects a broader-market pullback following yesterday’s solid participation.

Consumer Discretionary (XLY) is the only sector slightly in the green, although it has been oscillating around the flatline. Energy (XLE) is the worst performing sector, facing pressure as the price of oil falls to -2.5% to $55.43 per barrel. Investors are assessing the ongoing Russo-Ukrainian peace negotiations that could set the path for Russia’s return to the global oil market.

Despite rising earlier this morning, the Ten-Year Treasury Yield (TNX) has retreated and is now down 2.9 basis points to 4.153%.

Economic Data

Retail Sales for October came in approximately flat M/M from a 0.1% increase in September and a forecasted 0.1% rise.

The largest rises were in furniture, as well as sporting goods and e-commerce.

The S&P Composite PMI fell to 53 in December from 54.2 in November. Services fell to 52.9 from 54.1, while manufacturing also fell to 51.8 from 52.2.

Price pressures increased as average selling prices rose at one of the steepest rates since mid-2022.

The latest reading of the Atlanta Fed GDPNow model estimates Q3FY25 real GDP at 3.5%.