Last updated: 4:04PM EST
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Stock indices finished today’s trading session mixed, with the Nasdaq 100 (NDX) and the S&P 500 (SPX) up by 0.1% and 0.12%, respectively, while the Dow Jones Industrial Average (DJIA) was down by 0.13%.
The Energy sector (XLE) was the session’s laggard, as it lost 1.94%. Conversely, the Utilities sector (XLU) was the session’s leader, with a gain of 0.54%.
Furthermore, the U.S. 10-Year Treasury yield saw a slight decrease to 4.451%. Similarly, the Two-Year Treasury yield was also little changed, as it hovers around 4.848%.
Meanwhile, Federal Reserve Board Governor Lisa D. Cook stated that prolonged demand momentum could keep the economy and labor market tight and constrain the rate of disinflation. Cook also expressed concerns about the potential of an overly steep decrease in economic activity and employment as a result of overtightening.
According to the Fed executive, signs of stringent financial conditions are being seen in certain sectors of the economy, such as the housing sector and small businesses. She added that a soft landing is possible, but it isn’t assured.
Furthermore, Cook noted concerns about the possibility of additional global economic shocks, given elevated geopolitical tensions. She highlighted the risk these tensions pose, particularly in terms of potentially causing a significant increase in global energy prices.
Along the same lines, she mentioned that monetary policy actions in the U.S. could spill over to the global economy. Likewise, she noted that pressures from the global market could also influence the economic environment in the U.S., especially as the Fed continues to strive to keep inflation below 2%.
Last updated: 9:30AM EST
Stocks opened lower on Thursday morning, as the Nasdaq 100 (NDX) and S&P 500 (SPX) fell by 0.24% and 0.1%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) was down by 0.24% at 9:30 a.m. EST, November 16.
The labor market appears to be cooling down, as jobless claims climbed to a three-month high of 231,000. This was higher than economists’ forecast of 220,000 and the prior week’s claims of 218,000. In addition, the four-week moving average was 220,250, up by 7,750 from the prior week’s four-week moving average of 212,500.
Continuing jobless claims stood at 1.865 million in the week ending November 11, compared to economists’ forecast of 1.847 million.
Meanwhile, industrial output data indicated a -0.6% fall in industrial production in October, worse than economists’ forecasts of -0.4%. According to the Fed, this was attributable to the 10% fall in vehicle output caused by the United Auto Workers (UAW) strike against the Big Three automobile companies.
Furthermore, the Philadelphia Fed manufacturing index remained in negative territory. This is the index’s 16th negative reading over the past 18 months. However, the negative reading improved slightly to -5.9 in November from the -9 seen in the prior month. Economists had forecast a reading of -7.5 for November. A negative reading indicates deteriorating conditions.
First published: 3:44AM EST
Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are trending down on Thursday morning as traders look past the cooling inflation print. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.18%, 0.06%, and 0.01%, respectively, at 3:40 a.m. EST, November 16.
Remarkably, investors cheered the soft wholesale inflation data released yesterday. The Producer Price Index (PPI) dipped by 0.5% in October against the prediction of a 0.1% rise. This was the biggest month-over-month decline in the PPI since April 2020. Further, the PPI gained 1.3% on a year-over-year basis, which was lower than the consensus estimate of 2% growth. Investors are hoping for the Federal Reserve to keep interest rates unchanged for the rest of the year as inflation shows signs of easing.
Meanwhile, the U.S. 10-year treasury yield is down, floating near 4.49% at the time of writing. And the WTI crude oil futures are hovering near $76.12 per barrel as of the last check. Traders anticipate results from Walmart (WMT), Macy’s (M), Alibaba (BABA), Ross Stores (ROST), and Gap (GPS) today. Further, traders will keenly watch the data on Weekly Initial Jobless Claims to gauge the strength in the labor market.
Notably, shares of Palo Alto (PANW) fell 5.7% in after-hours trading yesterday despite beating both sales and earnings estimates for Q1FY24. Also, Cisco (CSCO) stock plunged nearly 11% in extended trading after beating Q1FY24 expectations but lowering Fiscal 2024 guidance. Further, entertainment giant Walt Disney (DIS) is in the midst of activist investor drama as another hedge fund, ValueAct Capital, builds a large stake in it. The news follows reports of activist investor, Nelson Peltz’s Trian Fund, adding to its Disney stake in Q3.
Elsewhere, European indices are jittery today morning as mixed corporate earnings direct the stocks.
Asia-Pacific Markets End in the Red on Thursday
A majority of Asia-Pacific indices ended in the red today. Electric Vehicle maker XPeng (XPEV) reported mixed results and widened losses in the third quarter, dragging down Chinese stocks. Moreover, markets paid close attention to the meeting between U.S. President Joe Biden and China President Xi Jinping held outside of San Francisco yesterday. Both countries have agreed to resume military talks following the meeting.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indexes ended lower by 1.36%, 0.71% and 1.23%, respectively.
Similarly, Japan’s Nikkei and Topix indices finished down by 0.28% and 0.19%, respectively.
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