Last Updated 4:05 PM EST
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Stock indices finished today’s trading session mixed, as the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) gained 0.45% and 0.8%, respectively. Meanwhile, the Nasdaq 100 (NDX) fell 0.16%. The communication sector (XLC) was the session’s laggard, as it fell 0.56%. Conversely, the financial sector (XLF) was the session’s leader, with a gain of 1.7%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.84%. The Two-Year Treasury yield also increased, as it hovers around 4.86%. This brings the spread between them to -102 basis points.
Compared to yesterday, the market is pricing in a higher chance of a lower Fed Funds rate for December 2023. In fact, the market’s expectations for a rate in the range of 5.5% to 5.75% increased to 31.7% compared to yesterday’s expectations of 21.5%.
In addition, the market is now also assigning a 10.7% probability to a range of 5% to 5.25%. For reference, investors had assigned a 21.8% chance yesterday.
Last Updated: 2:50PM EST
Stocks are mixed as we approach the final hour of today’s trading. As of 2:50 p.m. EST, the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up 0.2% and 0.6%, respectively. Meanwhile, the Nasdaq 100 (NDX) is down 0.4%.
Last Updated: 11:50AM EST
Stocks are in the green so far in today’s trading session. As of 11:50 a.m. EST, the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up 0.3% and 0.7%, respectively. Meanwhile, the Nasdaq 100 (NDX) is flat.
On Thursday, the National Association of Realtors released its Pending Home Sales report, which measures the month-over-month change in the number of home sales that have yet to close but are contracted to be sold. This measure excludes homes that are newly constructed.
During May, Pending Home Sales decreased by -2.7% compared to April, which was worse than the expected 0.2% increase. This is after a -0.4% decrease in the previous report. Of the last 12 reports issued, only three of them saw an increase.
In addition, the Pending Home Sales Index came in at 76.5, which is lower than the 99.6 reading from the same time last year. This equates to an approximate decline of 23.2% on a year-over-year basis.
Last updated: 9:30 AM EST
Stocks opened lower on Thursday morning even as the economic data suggested a resilient U.S. economy. The Nasdaq 100 (NDX) and the S&P 500 (SPX) were down by 0.14% and 0.11%, while the Dow Jones Industrial Average (DJIA) inched up by 0.06% at 9:32 a.m., EST, June 29.
The U.S. GDP data released on Thursday showed that the GDP increased by 2% on an annual basis, above the consensus forecast of a rise of 1.4%. This GDP was revised from the prior estimate of 1.3% versus growth of 2.6% in the fourth quarter of last year.
Initial jobless claims for the week ending June 24 fell unexpectedly by 26,000 to 239,000 as compared to economists’ estimate of 266,000 versus prior jobless claims of 265,000 (revised from 264,000). The four-week moving average was at the highest level since November 13, 2021, at 257,500, an increase of 1,500 from the prior week’s revised average of 256,000.
Continuing jobless claims stood at 1.742 million as compared to a forecast of 1.765 million.
First published: 4:34 AM EST
U.S. Futures are trending higher on Thursday morning, with the month’s end in sight. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are marginally up by 0.15%, 0.05%, and 0.02%, respectively, at 4:15 a.m. EST, June 29. The SPX, DJIA, and the Nasdaq Composite are poised to finish the month and the first half of 2023 on a positive footing.
The three major averages closed mixed yesterday, driven by diverse sentiments from the Fed Chair’s hawkish tone and news of a possibility of higher restrictions on chip sales to China. The Biden administration is mulling over posing further curbs on the export of advanced AI chips to China. The government worries the latest technology could be misused to create destructive weapons, engage in cyber warfare, and could be used to detect sensitive information.
However, chip companies are apprehensive about the potential consequences of stringent restrictions. They fear significant financial losses, as China is a major consumer of AI chips. Also, they believe that such a strong curb would have an impact on the competitiveness of the American chip industry.
Meanwhile, shares of chip maker Micron (NASDAQ:MU) gained in extended trading after it posted stronger-than-expected revenue for Q3FY23. Similarly, banking stocks jumped following the Federal Reserve’s Stress Test results, which showed all 23 big banks passed a hypothetical severe downturn.
Fed Chairman Jerome Powell is also speaking today at the ECB Forum on Central Banks 2023 in Madrid. Powell appreciated the strength of the larger U.S. banks, which helped weather the recent banking crisis, while also hesitating to confirm if the crisis is over. He also reiterated in the speech yesterday that markets should be prepared for further interest rate hikes this year and for a more restrictive policy to follow.
On the economic front, initial jobless claims for the week ending June 24 will be released today. Also, footwear retailer Nike (NYSE:NKE) is set to report Q4FY23 results today after the market closes, and analysts remain bullish on the company’s performance.
Elsewhere, European indices are trading mixed today as traders closely monitor the speeches of officials at the ECB Forum. Most central bank officials are calling for further rate hikes to curb the stubbornly high inflation. Leaders also warned of the possibility of a significant economic downturn later this year.
Most Asia-Pacific Markets End in the Red
Most Asia-Pacific indices finished the trading session in the red today, with a few markets closed for trading owing to the Eid al-Adha holiday. Traders are reacting to global leaders’ perspectives of future rate hikes.
Hong Kong’s Hang Seng and China’s Shanghai Composite and Shenzhen Component indexes finished down by 1.24%, 0.22%, and 0.09%, respectively.
On the contrary, Japan’s Nikkei bucked the trend and closed up by 0.12%, while the Topix index ended down by 0.10%.
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