Last Updated 4:05PM EST
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Stock indices finished today’s trading session in the green, as the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.97%, 0.73%, and 0.62%, respectively.
The energy sector (XLE) was the session’s laggard, as it lost 1.42%. Conversely, the utilities sector (XLU) was the session’s leader, with a gain of 2.59%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 4.82%, a drop of four basis points. On the other hand, the Two-Year Treasury yield increased, as it hovers around 5.1%.
Last Updated 2:40PM EST
Stock indices are in the green so far in today’s trading. On Tuesday, the CEO of JPMorgan Chase, Jamie Dimon, warned against the risks associated with locking in an outlook about the economy, especially in light of the Federal Reserve’s dismal track record.
The billionaire made these statements during a panel discussion at the Future Investment Initiative summit in Riyadh, Saudi Arabia. Dimon asked people to prepare for possibilities and probabilities, “not calling one course of action since I’ve never seen anyone call it.”
Dimon expressed his fears about the impact current events would have in making things more challenging in the future. “I want to point out the central banks 18 months ago were 100% dead wrong,” he added. “I would be quite cautious about what might happen next year.”
His remarks echo the sentiment about the Federal Reserve’s inaccurate outlooks and price misdiagnosis. In early 2022 and for a significant portion of the prior year, central bank officials maintained that the inflation increase would be “transitory.”
Likewise, Fed officials projected their key interest rate rising to only 2.8% by the end of 2023 — now north of 5.25% — and core inflation at 2.8%, 1.1 percentage points lower than its current level as measured by the central bank’s preferred gauge.
With Wall Street uncertain whether the Fed will raise interest rates before the end of 2023, Dimon stated that he doesn’t think the rate increase makes any difference. He added that if the entire curve increases by 100 basis points, he would be prepared for it. “I don’t know if it’s going to happen, but I look at what we’re seeing today, more like the ’70s, a lot of spending, a lot of this can be wasted,” he added.
Last Updated 11:35AM EST
Earlier today, Markit released its preliminary monthly report for the U.S. Services Purchasing Managers’ Index, which measures the activity levels of purchasing managers in the service sector. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 50.9, which was higher than the expected 49.8.
It’s worth noting that this indicator is higher than last month’s reading of 50.1. Nevertheless, it has been in an overall downtrend ever since its peak in August 2021, when it hit a high of 63.4.
Last Updated 9:33AM EST
U.S. stock indices are trending higher on Tuesday morning, with traders shifting their focus from macro pressures to key earnings. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) moved up by 0.69%, 0.75%, and 0.85%, respectively, at 9:36 a.m. EST, October 24.
Today, Coca-Cola (KO) has delivered a 7% year-over-year jump in its third-quarter EPS. General Motors (GM) also delivered better-than-expected quarterly numbers amid the ongoing United Auto Workers (UAW) union strike.
First Published 4:30AM EST
Major indices closed on a mixed note yesterday, as investor sentiment continues to be impacted by macro uncertainty, a high-interest rate backdrop, rising bond yields, and volatility in oil prices due to the ongoing Israel-Hamas conflict.
The 10-year treasury yield is moving around 4.82% at the time of writing, marginally down from yesterday’s closing. Meanwhile, the WTI crude oil futures are inching higher, hovering near $85.64 per barrel as of the last check.
Key earnings scheduled before the bell on Tuesday include Coca-Cola (KO), General Motors (GM), General Electric (GE), 3M (MMM), and Verizon Communications (VZ). In particular, investors will pay attention to commentary by General Motors’ management about the impact of the ongoing United Auto Workers (UAW) union strike on the company’s financials.
Meanwhile, all eyes will be on the post-market earnings reports of tech giants Alphabet (GOOGL, GOOG) and Microsoft (MSFT). Generative artificial intelligence (AI)-induced boom has sparked investor interest in these stocks this year. Analysts expect GOOGL to report solid revenue and earnings growth, driven by Google Cloud, increased YouTube ad revenue, and dominance in Google Search.
Coming to key economic releases, traders will await data on September’s S&P Global Manufacturing PMI and Services PMI (preliminary), with these reports reflecting the business conditions in the manufacturing and services sectors of the U.S. economy.
Elsewhere, European indices inched lower as of writing, ahead of key economic data on the Euro Zone’s business activity and earnings releases by major companies. Shares of Barclays (GB:BARC) declined despite better-than-anticipated earnings, as weakness in the investment banking division continued to weigh on overall results.
Asia-Pacific Markets Ended Mixed on Tuesday
Asia-Pacific indices finished mixed on Tuesday following key economic releases in the region. Japan’s factory activity shrank in October, while services sector witnessed its weakest growth this year.
Hong Kong’s Hang Seng index closed 1.05% lower, while China’s Shanghai Composite and Shenzhen Component indices ended higher by 0.78% and 0.61%, respectively.
Meanwhile, Japan’s Nikkei and Topix indices closed higher by 0.20% and 0.09%, respectively.
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