Stocks end the week on a positive note
Last update 4:00 pm EST
Stock indices ended today’s trading session in the green, as the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 gained 0.08%, 0.25%, and 0.96%, respectively.
The energy sector (XLE) was the laggard of the session, losing 2%. By contrast, the consumer discretionary sector (XLY) was the session leader, with a gain of 2.28%.
In addition, the 10-year US Treasury yield rose to 3.52%, an increase of more than one basis point. Similarly, the two-year Treasury yield has also risen as it hovers around 4.21%.
The Atlanta Federal Reserve has released its initial GDPNow reading for the first quarter of 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, he estimates that the economy will expand by around 0.7% in the first quarter.
However, interest rates remain high and are likely to continue to rise. So it will be interesting to see what real GDP growth will be and how it will change in the future.
Last update at 2:30 pm EST
Stock indices are in the green heading into the last 90 minutes of today’s trading session. As of 2:30 pm EST, the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 were up 0.4%, 0.6%, and 1.3%, respectively.
On Friday, the University of Michigan released its results on consumer inflation expectations for the next five years. Consumers now expect inflation to be 2.9%. This was better than the 3% forecast and was flat compared to the previous month.
Taking a look at consumer confidence, the results came in at 64.9, which was better than the 64.6 expected. This is an error 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.
Signs of lower inflation are likely to have had a positive impact on how consumers feel about the economy. However, it will be interesting to see if consumers remain positive as interest rates continue to rise.
Last Update: 11:42am EST
Stocks are in the green and heading towards the midpoint of today’s trading session. At 11:42 am EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) have risen by 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 not yet closed but are contracted to sell. This measure excludes newly built homes.
During December, Pending Home Sales increased by 2.5% compared to November, breaking six consecutive months of decline. This was better than the expected decline of -0.9%, which comes after a 2.6% drop in the previous report. Of the last 12 reports issued, only two of them saw an increase.
Additionally, the pending home sales index came in at 76.9, which is lower than the reading of 116.1 for the same period last year. This equates to an approximate 33.8% year-over-year decrease.
As a result, the overall trend for sales is down as the cost of borrowing remains high and more homes come on the market. This has also caused homes to stay on the market longer because there are fewer buyers who now have more options to choose from.
Last Update: 9:51am EST
Stocks opened in the green on Friday morning, ignoring INTC Grim fourth quarter results and outlookand after the inflation data was in line with expectations.
Data for the Personal Consumption Expenditures (PCE) price index released on Friday indicated it rose 0.1% month-on-month, unchanged from the previous month.
However, it was up 5% year-over-year, but was in line with expectations. The core PCE price index rose 4.4% yoy, again in line with estimates.
The Dow Jones Industrial Average (DJIA) gained 0.2% while the S&P 500 (SPX) was up 0.11% at 9:51 a.m. EST on Friday. Meanwhile, the Nasdaq 100 (NDX) advanced 0.3%.
First Posted: 5:49am EST
Stock futures moved lower on Friday morning ahead of key economic and earnings reports.
Dow Jones Industrial Average Futures (DJIA) fell 0.08% while those of the S&P 500 (SPX) was down 0.30% at 5:49 a.m. EST on Friday. Meanwhile, the Nasdaq 100 (NDX) futures fell 0.53%.
Influence the after-hours commercial wad Intel (NASDAQ:INTC), whose shares fell more than 9% after reporting weak earnings that fell short of broad expectations.
On Thursday, the fourth quarter 2022 gross domestic product (GDP) report gave investors reason to rejoice. The reading came in better than expected, with year-on-year growth at 2.9%, raising hopes that the economy won’t slip into a deep recession after all.
The fact that most of the earnings reports that have come out so far have been positive was a further encouragement.
The S&P 500, Dow and Nasdaq 100 were up 1.1%, 0.61% and 2%, respectively, at the close of business on Thursday. All indices are on track to end the week in the green.
Friday is a day packed with economic data. Personal income and expense data for December, as well as the number of pending home sales, are scheduled to be released on Friday. Importantly, the Personal Consumption Expenditure Price Index and January Consumer Confidence data will also be released. Here are some of the latest sets of economic data before the Federal Reserve begins its FOMC meeting on January 31. The market anticipates a 25 basis point rise this time, spending weeks contemplating and analyzing comments from Fed speakers.
Meanwhile, the Profits the season also continues. American Express (New York Stock Exchange:AXP), Colgate-Palmolive (NYSE:CL), and Chevron (New York Stock Exchange: CLC) are three of the key names scheduled to report quarterly results on Friday.
Asia-Pacific markets have a positive trend
On the other hand, Japan’s core consumer prices rose 4.3% in January, above market estimates. As a result, the yield on the 10-year Japanese government bond soared more than 3%. The Nikkei 225 barely stayed on the green.
The Kospi and Kosdaq rose 0.62% and 0.31%, respectively, as the earnings season in the region progressed.
Mainland China and Hong Kong returned from their week-long New Year vacation. The Hang Seng Index rose 0.24% while the Hang Seng Tech Index rose 0.62% on positive post-holiday sentiment.
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