DJIA Today: Dow Jones Futures Drop to Three-Week Low as Economic Data Disappoint

New York (May 13)  Dow industrials headed for their third consecutive loss Friday, as investors sifted through a batch of economic data that fell short of expectations, a sign the world’s largest economy was still struggling to regain its footing.

The Dow Jones Industrial Average declined 0.2% to 20,896.61, its lowest settlement in three weeks. Twenty-one of its 30 components finished in the red.

General Electric Co (NYSE: GE) was the Dow’s biggest laggard, falling 2.1%. The industrial bellwether was pressured by a downgrade from Deutsche Bank, which raised attention to GE’s weak cash flow.

Pharmaceutical Merck & Co Inc. (NYSE: MRK) closed down 1.3%. Managed healthcare company UnitedHealth Group Inc. (NYSE: UNH) and investment bank Goldman Sachs Group Inc. (NYSE: GS) reported declines of 0.9% apiece.

On the opposite side of the ledger, iPhone maker Apple Inc. (NASDAQ: AAPL) climbed 1.4%. Fast-food chain McDonald’s Corp (NYSE: MCD) added 0.8%.

The broader S&P 500 Index closed down 0.2% at 2,390.90, its lowest settlement since May 4. The technology-heavy Nasdaq Composite Index pared gains to finish up 0.1% at 6,121.23.

U.S. consumer prices rose last month, thought at a slower pace than expected, while retail sales climbed after an upwardly revised gain in Mach.

The consumer price index (CPI) rose 2.2% in the 12 months through April, the Labor Department said Friday. Analysts in a median estimate forecast an increase of 2.3%.

Retail sales, a proxy of consumer spending rose 0.4% in April, falling short of expectations of 0.6%.

Though weaker than expected, Friday’s data releases are unlikely to deter the Federal Reserve from tightening monetary policy in June. Traders are pricing in a 78.5% probability of liftoff next month, according to the 30-day Fed Fund futures prices.

Source: EconomicCalendar