Last Updated 4:09 PM EST
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Stock indices finished today’s trading session in the green as inflation continues to slow and small business optimism improves. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.79%, 0.69%, and 0.43%, respectively.
The utilities sector (XLU) was the session’s laggard, as it fell 0.03%. Conversely, the materials sector (XLB) was the session’s leader, with a gain of 2.32%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.83%. The Two-Year Treasury yield also increased, as it hovers around 4.68%. This brings the spread between them to -85 basis points.
Compared to yesterday, the market is pricing in a higher chance of a higher Fed Funds rate for December 2023. In fact, the market’s expectations for a rate in the range of 4.75% to 5% decreased to 17.4% compared to yesterday’s expectations of 24.3%.
In addition, the market is now also assigning a 34.2% probability to a range of 5.25% to 5.5%. For reference, investors had assigned a 25.6% chance yesterday.
Last updated: 2:39PM EST
Stocks remain in the green as we head into the final stretch of today’s session. However, indices have pulled back from their intraday highs. As of 2:39 p.m. EST, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.3%, 0.4%, and 0.3%, respectively.
Last updated: 11:41AM EST
Stocks are in the green so far in today’s trading session. As of 11:41 a.m. EST, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.6%, 0.6%, and 0.4%, respectively.
On Tuesday, the National Federation of Independent Business (NFIB) released its Small Business Optimism Index for the month of May. As the name suggests, it is a survey that measures the level of optimism among small businesses.
In May, the index increased by 0.4 points to a level of 89.4. As a result, it has remained below its 49-year average of 98 for the last 17 months. In addition, 25% of small business owners cited inflation as their single largest concern related to operations. This was up from last month’s 23%.
Still, 32% of businesses in the survey said they raised selling prices. Of the small businesses that saw lower profits, 26% attributed the decline to higher material costs, while 12% pointed to labor costs. Weaker sales made up 29% of the blame.
This data highlights that consumer spending is still strong since 71% of respondents who saw a decline in profits didn’t blame weaker sales. However, it demonstrates the impact that inflation has on profitability, as the higher revenue figures actually led to operating deleverage, meaning that earnings didn’t grow faster than sales.
Last updated: 9:40AM EST
Stocks opened higher on Tuesday after the latest inflation report pointed to slowing inflation. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.76%, 0.7%, and 0.6%, respectively, at 9:40 a.m. EST, June 13.
Last updated: 8:30AM EST
The latest CPI report indicated that inflation in May came in line with expectations giving rise to expectations of a pause in interest rate hikes. Following the data, the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.44%, 0.26%, and 0.1%, respectively, at 8:47 a.m., EST, June 13.
First published: 4:23AM EST
U.S. Futures are on an upward trajectory this morning in anticipation of a cooling inflation print. All eyes are on the U.S. consumer price index (CPI) data due at 8:30 a.m. EST. today. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.63%, 0.31%, and 0.09%, respectively, at 4:00 a.m., EST, June 13. Markets could swing to either side following the CPI release. Economists polled by Dow Jones project inflation to grow 0.1% month-over-month in May and rise 4% annually, much lower compared to April figures.
At the same time, the two-day Federal Open Market Committee (FOMC) meeting begins today. The Fed will closely watch the CPI data for signs of easing inflation as well as the producer price index (PPI) data due tomorrow before deciding on its interest rate decision. Meanwhile, WTI crude Oil is also inching higher this morning, hovering over $67 per barrel.
A lot is buzzing in the tech sector lately, with iPhone maker Apple (NASDAQ:AAPL) closing at a new all-time high yesterday. Meanwhile, regulators continue to haunt the big tech giants. Alphabet (NASDAQ:GOOGL) Google’s advertising technology business faces antitrust lawsuits, with both U.S. and EU regulators pushing to break up its ad tech business. Likewise, the Federal Trade Commission (FTC) is filing a lawsuit to stop Microsoft’s (NASDAQ:MSFT) acquisition of Activision-Blizzard (NASDAQ:ATVI).
On the other hand, Intel Corporation (NASDAQ:INTC) is set to become an anchor investor in chip-designing rival Arm’s initial public offering (IPO). Additionally, shares of Oracle Corporation (NYSE:ORCL) jumped in after-hours trading yesterday after the company posted a solid quarterly beat.
Elsewhere, European indices are trading in the green today, building momentum for the U.S. CPI print and the start of the FOMC meeting. Traders also look forward to the European Central Bank’s interest rate decision due June 15, with a 25-basis point hike on the cards.
Asia-Pacific Markets End Higher
Asia-Pacific indices ended the trading day higher today on a series of economic data points. Japan’s Nikkei broke the 33,000 level for the first time since July 1990, boosted by a 5% jump in Toyota Motor’s (NYSE:TM) stock, which announced plans to launch a full line-up of battery electric vehicles. The Topix index also surged 1.16%.
India’s inflation rate also rose to the lowest since January 2021, with the CPI growing 4.25% year-over-year in May.
Meanwhile, the Chinese economy is reeling from the pressure of a contracting economy. The People’s Bank of China slashed its seven-day reverse repo rate by 10 basis points to 1.9% to fuel liquidity in the economy.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended the day up by 0.63%, 0.15%, and 0.76%, respectively.
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