Stocks drift on Wall Street following latest run at record

Wall Street is drifting on Friday after a report showed that sales for US retailers strengthened again last month, but by less than economists expected. Consumer spending is the main locomotive for the US economy, and Friday's report on trends for U.S. retailers showed some more improvement, though with caveats.

Wall Street is drifting on Friday after a report showed that sales for US retailers strengthened again last month, but by less than economists expected. The S&P 500 was virtually unchanged in afternoon trading after earlier flipping between small gains and losses. The market is taking a pause after nearly erasing the last of the steep losses caused by the coronavirus pandemic. In each of the last two days, the index made a brief run above its record closing high, which was set in February, only to fade in the afternoon. It's now 0.3 per cent below the record.

More stocks across Wall Street were rising than falling, but the moves were mostly modest. The Dow Jones Industrial Average was up 41 points, or 0.1 per cent, at 27,937, as of 12:27 pm Eastern time, while the Nasdaq composite dipped 0.3 per cent. Consumer spending is the main locomotive for the US economy, and Friday's report on trends for U.S. retailers showed some more improvement, though with caveats. Sales at grocery stores, gas stations and other retailers rose 1.2 per cent last month from June. It's the third straight month of gains, following a historic plunge in the spring, but it marked a sharp slowdown from June's 8.4 per cent growth. It also fell short of the 2 per cent growth that economists were expecting.

Economists say consumer spending could be under more pressure following the expiration of US government programs to aid the economy, including USD 600 in extra unemployment benefits each week. Investors say it's crucial that Washington deliver another lifeline to the economy, and markets seem to be assuming a deal will happen. But Democrats and Republicans say they remain far apart on a possible compromise.