Last Updated: 4:09 PM EST
Stock indices finished today’s trading session in the red following a slew of economic data. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.21%, 0.21%, and 0.1%, respectively.
On Thursday, the Department of Labor released its Initial Jobless Claims report, which came in worse than expected. In the past week, 222,000 people filed for unemployment insurance for the first time. Expectations were for 219,000 individuals. When using the four-week average, initial jobless claims were 217,750, up from last week’s reading of 215,250.
In addition, Continuing Jobless Claims, which measures the number of unemployed people who qualify for unemployment insurance, came in at 1.794 million. This was above the forecast of 1.78 million and higher than last week’s print of 1.781 million.
Furthermore, the Federal Reserve Bank of Philadelphia released its Manufacturing Index report, which measures the general business conditions in Philadelphia. The report surveys approximately 250 manufacturers. A level above zero indicates improving conditions, while a number below zero indicates the opposite.
For May, the report came in at 4.5 compared to the forecast of 7.7, meaning that conditions improved less than expected on a month-over-month basis. Still, this is the fourth consecutive month where the index has seen a positive print.
The Atlanta Federal Reserve also had some updates as it released its latest GDPNow reading, 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 3.6% in the second quarter.
This is lower than its previous estimate of 3.8%, which can be attributed to recent releases from the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and the Federal Reserve Board of Governors.
First Published: 4:58 AM EST
U.S. futures edged higher on Thursday morning as yesterday’s soft inflation report reignited hopes that the Federal Reserve may begin interest rate cuts later this year. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.14%, 0.06%, and 0.06%, respectively, at 4:30 a.m. EST, May 16.
Buoyed by the favorable Consumer Price Index reading, all three major indices closed higher in yesterday’s trading session. The Nasdaq Composite gained 1.4%. At the same time, the Dow Jones and S&P 500 indices climbed 0.88% and 1.17%, respectively. As per economist Stephen Juneau of the Bank of America, inflation data must slow significantly for a September cut to be considered.
In today’s economic reports bulletin, investors are looking forward to the release of Weekly Jobless Claims data for the week ended May 11 and the Philadelphia Fed Manufacturing Index. On the earnings front, Walmart (WMT), Applied Materials (AMAT), Twilio (TTWO), Deere (DE), Canada Goose (GOOS), and Baidu (BIDU) will report their quarterly numbers today.
In terms of major stock market news, Monday.com (MNDY) stock jumped over 21% in a regular trading session yesterday after the company reported better-than-expected first-quarter results. In addition, Dell Technologies (DELL) gained about 11% after a Morgan Stanley analyst reiterated a Buy rating and lifted the stock’s price target. Furthermore, Chubb (CB) gained more than 8% in after-hours trading after Warren Buffett’s Berkshire Hathaway (BRK.A) disclosed a stake in the company.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.33%. At the same time, WTI crude oil futures trended higher, hovering near $78.9 per barrel as of the last check.
European indices opened mixed today as earnings from major companies hurt a relief rally in markets, triggered by soft U.S. inflation data.
Asia-Pacific Markets Traded Higher Today
Asia-Pacific indices traded higher today after the lighter-than-expected rise in U.S. consumer prices lifted investor sentiments.
Japan’s Nikkei and Topix indices were up 1.39% and 0.24%, respectively. Further, China’s Shanghai Composite and Shenzhen Component indices gained 0.08% and 0.21%, respectively. Also, Hong Kong’s Hang Seng index closed 1.5% higher.
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