Last updated: 4:09PM 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 0.31%, 0.59%, and 0.82%, respectively. The Communications sector (XLC) was the session’s laggard, as it added 0.2%. Conversely, the Real Estate sector (XLRE) was the session’s leader, with a gain of 2.1%.
Earlier today, Federal Reserve Chairman Jerome Powell said that it is too premature to speculate on when the Central Bank will start cutting interest rates, dousing market expectations. “We are prepared to tighten policy further if it becomes appropriate to do so,” he stated. He also reiterated the Federal Open Market Committee’s plans to keep policy restrictive until policymakers are convinced that inflation is heading solidly back to 2%.
Powell’s comments echo similar thoughts expressed by other Fed officials, suggesting that the monetary policies are “well into restrictive territory.” However, the Chair noted that the risks of the Federal Reserve under and over-tightening are becoming “more balanced.” Powell added the Central Bank remains cautious about its policies but sees progress in the economy so far.
Elsewhere, the Institute for Supply Management released its monthly report for the ISM Manufacturing Purchasing Managers’ Index, which measures the month-over-month change in production levels. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 46.7, which was lower than the expected 47.6.
Although this indicator is unchanged compared to last month’s reading, it’s still in an overall decline and has been slowly downtrending ever since its peak in April 2021, when it hit a high of 64.7.
Last updated: 3:57AM EST
U.S. Futures are jittery on Friday morning as markets enter the final month of the year. Futures on the Nasdaq 100 (NDX) are down by 0.07%, while those on the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up by 0.06% and 0.18%, respectively, at 3:55 a.m. EST, December 1.
The three major indexes witnessed some of their best monthly gains in November in over a year. The core Personal Consumption Expenditure (PCE) index rose lower than expected to 3.5% in November. Meanwhile, both the Dow and the SPX are on track to finish the trading week on positive footing while the Nasdaq is down for the week so far.
On the economic front, reports on Construction Spending and the ISM Manufacturing PMI are due today. In the meantime, the U.S. 10-year treasury yield is floating near 4.33% at the time of writing. And the WTI crude oil futures are trending down, hovering near $75.86 per barrel as of the last check. Oil prices are falling in reaction to the OPEC+ decision to halt any formal production cuts in the first quarter.
Turning toward stocks, the Walt Disney Company (DIS) is engaged in an extended tug-of-war with activist investor Nelson Peltz for multiple board seats. Meanwhile, CEO Bob Iger reinstated a cash dividend of $0.30 per share, payable in January 2024. Also, shares of Ulta Beauty (ULTA) soared 12% in after-hours trading yesterday after exceeding Q3FY23 expectations. On the other hand, Dell Technologies (DELL) shares fell nearly 4% as the company reported mixed results, with EPS beating expectations but revenue missing.
Further, Tesla’s (TSLA) stock fell 1.7% in regular trading yesterday and shed another 2.1% in extended trading after the pricing of the Cybertruck irked investors. In the meantime, VF Corporation (VFC) is implementing cost-reduction measures to enhance operational efficiency, reducing its workforce by 500 employees.
Elsewhere, European markets are trading higher on Friday after the flash estimates for the Eurozone showed that inflation fell more than expected to 2.4% in November. Traders hope that this could lead the European Central Bank (ECB) to rethink its monetary policy stance.
Asia-Pacific Markets End Lower on Friday
A majority of Asia-Pacific indices ended lower on Friday following economic reports from across the regions. China’s Caixin PMI data showed an unexpected expansion.
Hong Kong’s Hang Seng index and China’s Shenzhen Component index ended down by 1.25% and 0.06%, respectively, while the Shanghai Composite index finished higher by 0.06%.
Similarly, Japan’s Nikkei ended down by 0.17% while the Topix index finished up by 0.32%.
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