Stock Market News Today, 10/25/23 –Stocks Close Lower as Investors Weigh Economic Data

Last Updated: 4:05 PM EST

Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell by 2.47%, 1.43%, and 0.32%, respectively.

Furthermore, the U.S. 10-Year Treasury yield increased to 4.95%, a jump of 12 basis points. Meanwhile, the Two-Year Treasury yield remained flat, as it hovers around 5.11%.

The Atlanta Federal Reserve updated 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 5.4% in the third quarter.

This is unchanged compared to the previous estimate, which can be attributed to recent releases from the U.S. Census Bureau, the U.S. Department of the Treasury’s Bureau of the Fiscal Service, and the National Association of Realtors.

Last Updated: 2:30 PM EST

Stocks are in the red so far in today’s trading. On Wednesday, the Bank of Canada maintained its benchmark interest rate at 5% for the second time in a row. This indicates the central bank’s potential retreat following ten interest rate increases since last year. The overnight rate is set at 5%, the bank rate at 5.25%, and the deposit rate at 5%.

The move was widely anticipated by analysts and investors who monitor the central bank. Indeed, economic indicators–such as GDP, jobs data, and inflation–painted a picture of an economy that was slowing down.

The Bank of Canada stated that there is growing evidence in Canada that previous interest rate rises are reducing economic activity and easing pricing pressures. “Consumption has been subdued, with softer demand for housing, durable goods and many services,” the bank said.  

However, despite recent developments, the bank stated that price stability is low and inflationary risks have increased. The Governing Council, which sets monetary policy, stated that it is ready to raise interest rates higher if necessary.

According to the Bank’s October economic predictions, CPI inflation will hover around 3.5% on average until the middle of 2024, then decline to 2% in 2025. It also forecasts global growth of 2.9% this year, 2.3% next year, and 2.6% in 2025, slightly changed from its January estimate. However, the forecast this time expects the US economy to be more robust and China’s growth to be worse than in July.

Last Updated: 12:00PM EST

Stocks are mixed so far in today’s trading. Earlier today, the Census Bureau released its United States New Home Sales data for September, which came in at 759,000. For reference, forecasters were expecting a print of 680,000. This was also higher than last month’s report of 676,000.

Furthermore, house prices saw a decrease. Indeed, the median sales price was $418,800 in September compared to $430,300 in August. In addition, the average sales price was $503,900, lower than the $514,000 average seen in the prior month.

Moreover, U.S. Building Permits missed expectations, with a print of 1.471 million compared to the forecast of 1.473 million. This was a decrease from the prior month’s report, which came in at 1.541 million, equating to a decrease of -4.5% month-over-month.

Last updated: 9:30AM EST

Stocks were mixed at open on Wednesday morning after the Nasdaq 100 (NDX) and the S&P 500 (SPX) were down by 1.1% and 0.6%, respectively, while the Dow Jones Industrial Average (DJIA) was up by 0.3%, at 9:30 a.m. EST, October 25.

First published: 4:31AM EST

U.S. Futures are trending down on Wednesday morning as traders parse through an action-packed earnings week. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.69%, 0.50%, and 0.08%, respectively at 4:30 a.m. EST, October 25.

Microsoft stock (MSFT) jumped in after-hours trading after beating both revenue and earnings estimates, backed by strong performance in the Azure Cloud segment. In contrast, Alphabet stock (GOOGL) fell over 6% in extended trading despite exceeding sales and earnings expectations. Investors reacted rather harshly to the decelerating performance of Alphabet’s Cloud business. Also, Snap (SNAP) shares soared 13% in after-hours trading after beating analysts’ Q3FY23 estimates. Notably, Snap’s Daily active users (DAUs) shot up to 406 million, growing by 12% compared to last year, boosting investor confidence in the social media company.

Today, traders await earnings from Boeing (BA), Meta Platforms (META), T-Mobile (TMUS), and IBM (IBM), among others. Meanwhile, Building Permits and New Home Sales data will be released later in the day. In the meantime, the U.S. 10-year treasury yield is still up, floating near 4.85% at the time of writing. Further, the WTI crude oil futures are hovering near $83.48 per barrel as of the last check. 

In other news, General Motors’ (GM) autonomous vehicle unit, Cruise, lost its license to test and deploy driverless robotaxis in San Francisco following an incident on October 2. Anheuser-Busch InBev’s (BUD) Bud Light rekindled its partnership with UFC as its official sponsor. The six-year marketing deal will begin on January 1, 2024, after UFC’s current partnership with Constellation Brands’ (STZ) Modelo expires.

Elsewhere, European indices are trading in the red on Wednesday as investors assess the mixed results from companies and fret about the intensified Israel-Hamas war. German banker Deutsche Bank (DB) reported better-than-expected net profit figures, pushing shares higher in pre-market trading today.  

Asia-Pacific Markets Mostly End Higher on Wednesday

Most Asia-Pacific indices finished higher on Wednesday. Australia’s inflation figure for the September quarter came in modestly higher than expected at 5.4%, dragging down the country’s stocks.

Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended higher by 0.55%, 0.40%, and 0.47%, respectively.

Similarly, Japan’s Nikkei and Topix indices ended up by 0.67% and 0.61%, respectively.

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