Last updated: 4:06PM 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 0.43%, 0.41%, and 0.53%, respectively.
The Energy sector (XLE) was the session’s top loser, as it lost 0.05%. Conversely, the Communications sector (XLC) was the session’s leader, with a gain of 0.82%.
Furthermore, the U.S. 10-Year Treasury yield saw a slight increase to 4.41%. Similarly, the Two-Year Treasury yield was also little changed, as it hovers around 4.9%.
According to the University of Michigan consumer sentiment index, consumers are still concerned, particularly about inflation possibly rising again. As per the most recent assessment, the index dropped to 61.3 in November from 63.8 in October.
Furthermore, one-year inflation expectations rose to 4.5% versus economist estimates of 4.4%. This was up from the 4.2% seen in the previous month. The recent data suggests that consumers are still fearful of developments in the Middle East driving up gasoline prices.
According to Joanne Hsu, the director of Surveys of Consumer, inflation expectations have risen despite consumers taking note of its continued slowdown so far in 2023. Hsu stated that consumers remain weary of inflation, which they believe could reverse in the months and years ahead.
Meanwhile, Crude oil inventories in the United States increased last week due to stronger imports, the Energy Information Administration (EIA) said on Wednesday. Indeed, crude inventories rose by 8.7 million barrels in the week ending November 17 to 448.1 million barrels. This was higher than analysts’ expectations of a 1.16 million barrel increase.
Last updated: 9:30AM EST
Stocks opened higher on Wednesday morning, with the Nasdaq 100 (NDX) and the S&P 500 (SPX) up by 0.85% and 0.49%, respectively, while the Dow Jones Industrial Average (DJIA) is up by 0.41% at 9:30 a.m. EST, November 22.
The jobless claims data indicated that the labor market continues to be strong. Indeed, new jobless claims fell by 24,000 to a five-week low of 209,000 in the week ending November 18 from a revised figure of 233,000 in the previous week. Economists had forecast new jobless claims to come in at 229,000 during the week ending November 18.
Continuing jobless claims stood at 1.84 million compared to 1.86 million in the prior week (revised from 1.865 million).
Meanwhile, orders for durable goods slid by 5.4% in October as most manufacturers reported weaker demand. This was a larger decline than economists’ forecast of 3.4%. Barring the transportation sector, core orders fell by 0.1% in October. In the transportation sector, Boeing (BA) saw fewer contracts for its airplanes.
When it comes to mortgage demand, it jumped to a six-week high with total application volumes rising by 3% from the prior week. Mortgage applications increased by 4% from the prior week but were still lower by 20% year-over-year.
In addition, the average interest rate for 30-year fixed-rate mortgages with conforming loan balances declined to 7.41% from 7.61%.
Joel Kan, Mortgage Bankers Association’s deputy chief economist, commented, “Most mortgage rates in our survey decreased, with the 30-year fixed mortgage rate decreasing to the lowest rate in two months. Mortgage applications increased to their highest level in six weeks, but remain at very low levels.”
First published: 4:18AM EST
U.S. Futures are trending mixed on Wednesday morning following Nvidia’s (NVDA) blowout Q3FY24 results. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) are down by 0.13% and 0.01%, respectively, while those on the Dow Jones Industrial Average (DJIA) are up by 0.10% at 4:15 a.m. EST, November 22.
The three major indexes ended yesterday’s trading on a negative footing. This could be in part due to investors’ skepticism of Nvidia’s dominance with the chip ban on China. At the same time, analysts remain bullish about NVDA stock post-earnings and have hailed it as a “Top Pick.” Moreover, traders got no respite from the minutes of the Federal Open Market Committee’s (FOMC) meeting from Oct 31- Nov 1 announced yesterday. The Fed gave no indications that it could cut interest rates anytime soon, instead stressing on maintaining a “restrictive” stance.
Meanwhile, the U.S. 10-year treasury yield is down, floating near 4.40% at the time of writing. And the WTI crude oil futures are hovering near $77.85 per barrel as of the last check.
In an unexpected turn of events, OpenAI announced the return of Sam Altman, who was ousted as CEO to lead the company, effective immediately. On the other hand, Changpeng Zhao “CZ”, the founder and CEO of Binance, stepped down from his role, pleaded guilty to violating the U.S. anti-money laundering laws, and agreed to a $4.3 billion fine as part of the final settlement with the U.S. Department of Justice (DOJ).
Elsewhere, European markets are trading in the green on Wednesday as traders parse through the Federal Reserve’s FOMC minutes and Nvidia results.
Asia-Pacific Markets End Mixed on Wednesday
Asia-Pacific indices ended mixed on Wednesday following the FOMC minutes from the U.S. Federal Reserve.
Hong Kong’s Hang Seng index ended near the flatline while China’s Shanghai Composite and Shenzhen Component indexes ended lower by 0.79% and 1.41%, respectively.
On the contrary, Japan’s Nikkei and Topix indices finished higher by 0.29% and 0.44%, respectively.
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