Last Updated: 4:00PM EST
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Stock indices finished today’s trading session mixed. The Dow Jones Industrial Average (DJIA) gained 0.16%, while the S&P 500 (SPX) and the Nasdaq 100 (NDX) fell 0.07% and 0.55%, respectively. Furthermore, the U.S. 10-Year Treasury yield increased to 4.14%, an increase of two basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.36%.
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 8.3% compared to November, which was better than the expected 1.5% increase. This is after a -0.3% decrease in the previous report. In addition, the Pending Home Sales Index came in at 77.3, which is higher than the 76.3 reading from the same time last year.
Last Updated: 10:30AM EST
Stock indices are mixed so far in today’s trading session. Earlier today, the personal consumption expenditures (PCE) price index for December, closely watched by the Federal Reserve, increased 0.2% month-over-month and 2.9% year-over-year when excluding the more volatile food and energy categories.
The monthly change was in line with expectations, while the yearly change was slightly below the 3% that was expected and below last month’s reading of 3.2%. When including food and energy costs, inflation rose 0.2% month-over-month and 2.6% year-over-year.
This latest data adds to the growing evidence that inflation, though still higher than preferred, is steadily declining. This shift could potentially signal the Federal Reserve to consider reducing interest rates later in the year.
Breaking down the inflation figures, there was a notable reversal in trends: goods prices fell by 0.2%, while services prices climbed by 0.3%. This contrasts with the early days of the pandemic when demand for goods surged, which strained supply chains and pushed prices up.
First Published: 3:44AM EST
U.S. futures inched lower on Friday morning as the disappointing outlook of semiconductor companies hurt investor sentiments. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.88%, 0.46%, and 0.38%, respectively, at 3:33 a.m. EST, January 26.
Yesterday, Intel (INTC) stock dipped nearly 10% in extended trading hours after it announced a lower-than-expected outlook for Q1 FY24. Further, KLA Corp. (KLAC) fell 5% after its third-quarter revenue forecast remained below consensus estimates due to subdued demand in the electronics segment.
In other stock-market news, Microsoft (MSFT) is laying off about 1,900 employees from its gaming unit. The news comes over three months after MSFT acquired Activision Blizzard. Also, Apple’s (AAPL) Q4 iPhone shipments in China registered a 2.1% year-over-year decline. At the same time, the stock of Advanced Micro Devices (AMD) hit an all-time high yesterday on expectations of an increase in AMD’s market share in the AI market.
Turning to key economic reports, the Core Personal Consumption Expenditures (PCE) report for December is slated to be released today. Economists expect core PCE prices in the U.S. to have increased by 0.2% in the final quarter of 2023. Moreover, corporate earnings due today include Colgate Palmolive (CL), American Express (AXP), and Caterpillar (CAT).
Meanwhile, oil prices were steady at the time of writing, easing concerns over supply disruptions. The WTI crude oil futures hovered near $76.92 per barrel as of the last check.
Elsewhere, European markets are expected to open mixed on Friday as investors await the release of U.S. PCE inflation data.
Asia-Pacific Markets End Lower on Friday
Most of the Asia-Pacific indices ended in the red on Friday.
Hong Kong’s Hang Seng index and Shenzhen Component indices ended lower by 1.6% and 1.06%, respectively, while China’s Shanghai Composite climbed 0.14% higher. On the other hand, Japan’s Nikkei and Topix indices finished lower by 1.34% and 1.35%, respectively.
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