Stock Market News Today, 5/15/23 – Stocks Finish Higher; Household Debt Increases

Last Updated: 4:00PM EST

Stocks finished today’s trading in the green, as the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.55%, 0.3%, and 0.15%, respectively.

As inflation surpasses wage growth, American households are grappling with rising debt levels. The Federal Reserve Bank of New York revealed that total U.S. household debt climbed by 0.9% to $17.05 trillion, a $2.9 trillion increase since the end of 2019.

Key contributors included a $121 billion surge in mortgage balances, a $9 billion increase in student debt, and a $10 billion uptick in auto loans. Meanwhile, credit card debt remained steady at $990 billion.

However, the report also highlighted a worrying trend: more of these debts are becoming delinquent. Serious delinquency rates – debts overdue by 90 days or more – rose for both credit card and auto loans, at 4.57% and 2.33%, respectively.

Interestingly, the rate of student loan debt delinquency fell to 0.94%, likely due to the ongoing suspension of federal student loan payments. Yet, it’s clear that as inflation continues, managing household debt is becoming increasingly challenging for many Americans.

Last Updated: 2:30PM EST

Stocks are in the green so far in today’s trading session. As of 2:30 p.m. EST, the S&P 500 (SPX) and the Nasdaq 100 (NDX) are up 0.2% and 0.4%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) is near the flatline.

Last Updated: 11:25AM EST

Stocks are little changed so far in today’s trading session. As of 11:25 a.m. EST, the S&P 500 (SPX) and the Nasdaq 100 (NDX) are near the flatline. Meanwhile, the Dow Jones Industrial Average (DJIA) is up 0.3%.

Earlier today, the Federal Reserve Bank of New York released its Empire State Manufacturing Index report, which measures the relative level of general business conditions in New York State based on a survey of 200 manufacturers. A level above 0.0 indicates improving conditions and below indicates worsening conditions.

Today’s report came in at -31.8, which was a significant miss compared to expectations of -3.7. This also follows last month’s print of 10.8. It’s worth noting that over the past 12 months, conditions only improved in three of those months, which were all followed by larger-than-expected drops.

Last Updated: 9:30AM EST

U.S. indices are trending higher this morning after the three major indices closed in the red on Friday. The University of Michigan’s consumer sentiment index fell to a six-month low, contributing to the negative sentiment. Additionally, the political drama surrounding the U.S. debt ceiling has caused some distraction in the market.

As of 9:30 a.m. EST, May 15, the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up 0.1%, 0.12%, and 0.1% respectively. The rebound comes after the S&P 500 and Dow Jones declined for two consecutive weeks, with investors worrying about macro challenges and the regional banking scenario despite signs of cooling inflation.

In the final phase of the earnings season, all eyes this week will be on the results of large retail players, including Walmart (WMT), Target (TGT), TJX Companies (TJX), and Home Depot (HD). Investors will focus on how these companies are navigating a high-cost environment, their comments on consumer spending, and guidance in the wake of continued macro challenges. More details about the companies reporting this week can be found on the TipRanks Earnings Calendar.  

Coming to key economic releases, data on April retail sales and industrial production, as well as comments by key Federal Reserve officials, will be in focus. Further, the industrial output and retail sales readings of China, the world’s second-largest economy, could also impact the markets this week.

Elsewhere, European markets were mixed on Monday as investors in the region focused on the results of Turkey’s presidential election.

Asian Stock Markets Closed Higher

Asia-Pacific indices ended Monday’s trading session on a positive note. Thailand’s currency Baht strengthened against the U.S. dollar, with the country’s opposition party winning the general election and ending the military-backed government of Prime Minister Prayuth Chan-Ocha, who took control in a 2014 coup.

Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices were up 1.75%, 1.17%, and 1.57%, respectively, at the end of today’s trading session. China stocks gained from investors’ hopes of additional supportive policies and stimulus measures by the government following dismal inflation, trade, and credit data last week.

Also, Japan’s Nikkei was up 0.81%, while the Topix index ended the trading session with an increase of 0.88%.

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