Last Updated 4:05 PM EST
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Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.56%, 0.39%, and 0.19%, respectively.
Furthermore, the U.S. 10-Year Treasury yield decreased to 4.12%, a drop of five basis points. Conversely, the Two-Year Treasury yield increased, as it hovers around 4.6%.
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 1.3% in the fourth quarter.
This is higher than its previous estimate of 1.2%, which can be attributed to recent releases from the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, and the Institute for Supply Management.
Last updated: 9:30AM EST
Stocks opened higher on Wednesday morning, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) up 0.44%, 0.37%, and 0.22%, respectively, at 9:30 a.m. EST, December 6.
Another round of economic data was released, which indicated that non-farm productivity in the third quarter went up by 5.2%. This was above economists’ forecasts of a 4.9% rise and higher than the previous quarter’s print of a 3.5% increase. This marked the highest level of non-farm productivity over the past three years. Overall, output went up by 6.1%.
Meanwhile, unit labor costs were revised to a decline of 1.2% in Q3 as compared to a prior estimate of 0.8%. This was worse than economists’ forecast of a 0.9% drop.
The ADP jobs report showed that private-sector employment increased by 103,000 in November, less than the 113,000 seen in October. This was lower than the consensus estimate of an increase of 123,000 jobs.
Nela Richardson, chief economist at ADP, commented, “Restaurants and hotels were the biggest job creators during the post-pandemic recovery. But that boost is behind us, and the return to trend in leisure and hospitality suggests the economy as a whole will see more moderate hiring and wage growth in 2024.”
Annual pay went up at its slowest pace since September 2021 – up by 5.6% year-over-year.
In addition, U.S. trade data indicated that the trade deficit widened by 5% in October to a three-month high of $64.3 billion. This comes as exports declined by 1% to $258.8 billion, primarily due to automobiles and COVID-related drugs. In contrast, imports inched up 0.2% to $323 billion, driven by higher demand for PCs and drilling equipment for oil.
First published: 3:13AM EST
U.S. Futures are trading in the green early Wednesday, driven by investor optimism surrounding the expectation that the Federal Reserve will soon conclude its rate hikes. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up 0.39%, 0.26%, and 0.14%, respectively, at 3:07 a.m. EST, December 6.
In major news, Apple (NASDAQ:AAPL) stock reclaimed the $3 trillion market cap. AAPL stock has shown remarkable resilience, registering a nearly 50% gain year-to-date due to the higher iPhone revenue, ongoing strength in the Services segment, and growing installed base of active devices.
In after-hours action, shares of technology company Box (NYSE:BOX) fell about 13% on a weaker-than-expected full-year revenue forecast. Further, shares of software company Asana (NYSE:ASAN) dropped 10% following the Q3 earnings report. Meanwhile, shares of MongoDB (NASDAQ:MDB) slipped more than 5% after the company reported Q3 earnings that surpassed analysts’ expectations.
Moving on to key earnings releases, Specialty retailer GameStop (NYSE:GME) will release its Q3 financial results today after the market closes. While the company’s top line could remain muted, its initiatives to improve margins and make cost cuts will likely help reduce losses compared to the prior year.
Meanwhile, oil prices were trending higher at the time of writing due to the announcement of the voluntary output cut by OPEC+ nations and the growing tension in the Middle East. The WTI crude oil futures were up, hovering near $72.41 per barrel as of the last check.
Elsewhere, European indices are set to open positively as investors attentively weigh the potential for interest rate changes by leading central banks in the upcoming year.
Asia-Pacific Markets Ended Lower on Monday
Most of the Asia-Pacific indices rebounded Wednesday, ending the day in positive territory as investors evaluated Australia’s Q3 GDP numbers and noted an uptick in business sentiment among significant Japanese manufacturers.
Hong Kong’s Hang Seng index closed higher by 0.9%, and China’s Shenzhen Component index ended up by 0.66%. However, the Shanghai Composite closed 0.11% lower.
Japan’s Nikkei and Topix indices finished higher by 2.04% and 1.9%, respectively.
