Last Updated 4:00 PM EST
Stock indices finished today’s trading session in the green, as the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 gained 0.08%, 0.25%, and 0.96%, respectively.
The energy sector (XLE) was the session’s laggard, as it lost 2%. Conversely, the consumer discretionary sector (XLY) was the session’s leader, with a gain of 2.28%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.52%, an increase of more than one basis point. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.21%.
The Atlanta Federal Reserve released its initial GDPNow reading for Q1 2023, which allows it to estimate GDP growth in real time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 0.7% in the first quarter.
Nevertheless, interest rates remain high and are likely to continue increasing. Therefore, it’ll be interesting to see what the actual GDP growth will be and how it’ll change going forward.
Last Updated 2:30PM EST
Stock indices are in the green heading into the final 90 minutes of today’s trading session. As of 2:30 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are up 0.4%, 0.6%, and 1.3%, respectively.
On Friday, the University of Michigan released its results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 2.9%. This was better than the forecast of 3% and remained flat compared to the previous month.
Taking a look at consumer sentiment, results came in at 64.9, which was better than the expected 64.6. This is a bug jump compared to last month’s reading of 59.7. Similarly, consumer expectations were also better than expected. January saw a print of 62.7 versus the forecast of 62. This was also an increase compared to last month’s result of 59.9.
It’s likely that hints of easing inflation have positively impacted how consumers feel about the economy. Nevertheless, it’ll be interesting to see if consumers remain positive as interest rates continue to rise.
Last updated: 11:42AM EST
Stocks are in the green heading into the halfway point of today’s trading session. As of 11:42 a.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 0.2%, 0.3%, and 0.8%, respectively.
On Friday, the National Association of Realtors released its Pending Home Sales report, which measures the month-over-month change in the number of home sales that have yet to close but are contracted to be sold. This measure excludes homes that are newly constructed.
During December, Pending Home Sales increased by 2.5% compared to November, snapping six straight months of decline. This was better than the expected -0.9% decline, which comes after a 2.6% drop in the previous report. Of the last 12 reports issued, only two of them saw an increase.
In addition, the Pending Home Sales Index came in at 76.9, which is lower than the 116.1 reading from the same time last year. This equates to an approximate decline of 33.8% on a year-over-year basis.
As a result, the overall trend in sales is downwards, as the cost of borrowing remains high and more houses hit the market. This has also caused houses to sit for longer periods of time on the market because there are fewer buyers who now have more options to choose from.
Last updated: 9:51AM EST
Stocks opened in the green on Friday morning, shrugging off INTC’s dismal Q4 earnings and outlook, and after inflation data came in line with expectations.
The personal consumption expenditures (PCE) price index data released on Friday, indicated that it increased by 0.1% month-over-month, unchanged from the prior month.
However, it increased by 5% year-over-year but was in line with expectations. The core PCE price index increased by 4.4% year-over-year and was again in line with estimates.
The Dow Jones Industrial Average (DJIA) gained 0.2% while the S&P 500 (SPX) inched up 0.11%, as of 9:51 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) advanced 0.3%.
First published:5:49AM EST
Stock futures moved lower early Friday morning ahead of key earnings and economic reports.
Futures on the Dow Jones Industrial Average (DJIA) fell 0.08% while those on the S&P 500 (SPX) inched down 0.30%, as of 5:49 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) futures retreated 0.53%.
Influencing the after-hours trading wad Intel (NASDAQ:INTC), whose shares tumbled more than 9% after reporting weak earnings that fell short of the top and bottom line expectations.
On Thursday, the fourth-quarter 2022 gross domestic product (GDP) report gave investors a reason to rejoice. The reading came better than expected, at 2.9% year-over-year growth, which increased hopes that the economy might not fall into a deep recession after all.
The fact that most of the earnings reports that have come out so far have been positive was an added mood-lifter.
The S&P 500, the Dow, and the Nasdaq 100 rose 1.1%, 0.61%, and 2%, respectively, at market close Thursday. All the indexes are on track to end the week in green.
Friday is an economic data-packed day. December’s personal income and spending data, as well as the pending home sales number, are scheduled to be out on Friday. Importantly, the Personal Consumption Expenditures Price Index, and consumer sentiment data for January will also be released. These are among the last set of economic data before the Federal Reserve commences its FOMC meeting on January 31. The market is anticipating a 25 basis-point hike this time, going by weeks of contemplation and parsing through the comments of the Fed speakers.
Meanwhile, the earnings season also continues. American Express (NYSE:AXP), Colgate-Palmolive (NYSE:CL), and Chevron (NYSE:CVX) are three of the key names scheduled to report quarterly results on Friday.
Asia-Pacific Markets Trend Positively
Elsewhere, Japan’s core consumer prices rose 4.3% in January, which was above market estimates. As a result, the yield on the 10-year Japanese government bond spiked more than 3%. The Nikkei 225 remained barely in the green.
The Kospi and Kosdaq climbed 0.62% and 0.31%, respectively, as the earnings season in the region rolled on.
Mainland China and Hong Kong came back from their week-long New Year holidays. The Hang Seng index increased 0.24% while the Hang Seng Tech Index rose 0.62% on positive sentiments after the holidays.
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