The Dow Jones Industrial Average opened with modest gains on Tuesday, holding near record levels after U.S. retail sales data for December came in weaker than expected. The benchmark index rose 57.6 points, or 0.11%, to 50,193.49 at the opening bell. The S&P 500 and Nasdaq Composite each added 0.14%.
Economic Data Disappoints
U.S. retail sales were unchanged in December, missing economist forecasts for a 0.4% increase and following a 0.6% rise in November. Core retail sales, which exclude certain volatile categories and feed directly into GDP calculations, declined 0.1%. The softer-than-expected spending data prompted a slight easing in Treasury yields as traders assessed the implications for Federal Reserve policy.
Coca-Cola Shares Slide on Outlook
In early trading, Coca-Cola shares declined after the beverage giant projected 2026 organic revenue growth of 4% to 5%, which analysts described as conservative. The company also missed fourth-quarter revenue estimates, citing uneven consumer demand. The outlook reflects ongoing challenges as consumers react to years of price increases across the consumer staples sector.
Market participants are navigating a volatile environment following last week's selloff in software shares, which was triggered by concerns about traditional business models in an AI-dominated landscape. The Dow closed Monday at a record 50,135.87, with technology stocks showing signs of recovery.
Focus Shifts to Key Reports
Attention now turns to delayed economic reports scheduled for release later this week. The January jobs report is due Wednesday, followed by the Consumer Price Index inflation data on Friday. These releases could significantly influence market expectations for the timing of potential Federal Reserve interest rate cuts. Strong labor data or elevated inflation readings could prompt traders to reassess rate cut expectations, potentially pressuring rate-sensitive sectors.
Investors remain cautious as they parse conflicting signals about the economy's strength and the Federal Reserve's policy path amid fluctuating market sentiment.
