Stocks Tumble on Disappointing Retail Sales Data

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  1. Stocks fell Friday as investors assessed data on the coronavirus outbreak in China and U.S. consumer spending was mixed.
  2. Coronavirus update: 1,384 deaths, with an additional 64,457 infected.
  3. Nvidia is Real Money’s Stock of the Day. A surge in data-center sales helped the chipmaker post stronger-than-expected fourth-quarter profit.

Stocks turned lower Friday as investors continued to parse data on the coronavirus outbreak in China and data on U.S. consumer spending was mixed.

© TheStreet Stocks Tumble on Disappointing Retail Sales Data

The overall number of confirmed cases of the coronavirus – known as Covid-19 – have risen to just below 65,000 and the number of deaths from the disease have climbed to 1,384.

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Investors on Wall Street and overseas this week largely have ignored the grim reality of the virus and its potential economic fallout, lifting U.S., European and global stocks to all-time highs even as cash continues to find its way into defensive assets such as Treasury bonds, gold, the dollar and the yen.

The Dow Jones Industrial Average fell 108 points, or 0.37%, to 29,314, the S&P 500 was down 0.1% and the Nasdaq slumped 0.09%.

Retail sales in the United States rose 0.3% in January, matching economists’ forecasts, as sales at furniture and hardware stores climbed. Retail sales rose for a fourth straight month. But control group retail sales were flat in January from December and December’s increase of 0.5% was revised down to 0.2%.

The University of Michigan’s consumer sentiment index for February was 100.9, topping economists’ estimates of 99.5.

Tesla priced its $2 billion stock offering at a 21% discount to the stock’s recent all-time high in a move that seeks to capitalize on a rally that has added nearly 50% to the company’s market value over the past month.

Tesla plans to sell 2.65 million shares at $767 a share, the company said in a filing with the Securities and Exchange Commission, raising around $2.03 billion in total proceeds. The price is a 4.6% discount to Thursday’s closing price, which valued the electric vehicle company at $145.8 billion, and was around 21% lower than the stock’s record high of $968.98 it hit last week.

Nvidia was rising sharply Friday after a surge in data-center sales helped the chipmaker post stronger-than-expected fourth-quarter profit.

Nvidia said adjusted earnings in the quarter were $1.89 a share, beating analysts’ forecasts of $1.67. Revenue rose 40% to $3.11 billion, as data-center sales, which make up a third of the overall total, surged 43% from a year earlier.

Nvidia noted, however, that the still-unknown impact of the spreading coronavirus in China would clip current-quarter revenue by around $100 million. The company expects revenue of $2.94 billion to $3.06 billion in the first quarter, still above analysts’ forecasts of $2.85 billion.

Roku rose Friday after the maker of streaming-media devices reported a fourth-quarter loss narrower than analysts’ estimates, an increase in revenue and better-than-expected subscribers numbers as customers flocked to its platforms amid the launch of new offerings from Walt Disney DIS and Apple AAPL.

Roku posted a quarterly loss of 13 cents a share on revenue of $411 million. Analysts has been expecting a loss of 14 cents a share on revenue of $391.6 million.

Subscribers to Roku’s platforms jumped to 36.9 million, ahead of Wall Street’s expectations of 36 million. Roku added 4.6 million new customers during the fourth quarter.

Canopy Growth was rising sharply after the Canadian cannabis company reported an adjusted EBITDA loss of C$91.7 million, narrower than analysts’ estimates of a loss of C$110 million.

This article was originally published by TheStreet.