Last Updated 4:05 PM EST
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Stock indices finished today’s trading session in the green. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.95%, 0.38%, and 0.22%, respectively.
The utilities sector (XLU) was the session’s laggard, as it fell 1.15%. Conversely, the technology sector (XLK) was the session’s leader, with a gain of 1.28%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.81%. The Two-Year Treasury yield also decreased, as it hovers around 4.75%. This brings the spread between them to -94 basis points.
Compared to yesterday, the market appears to have more conviction about the Federal Reserve keeping interest rates between 5.25% and 5%. Indeed, the probability increased to 64.3% at the time of writing, with the current range of 5% to 5.25% seeing a slight tick up as well to 13.7%.
Last Updated: 1:00PM EST
Stocks are higher so far in today’s trading. Treasury Secretary Janet Yellen, during her Bloomberg Television interview on Monday, expressed concerns that China’s decelerating economic growth could ripple into the global economy. These comments come on the heels of China’s less-than-expected GDP growth for Q2, influenced by the country’s struggling real estate sector and reduced global demand affecting exports.
Yellen also pointed to China’s lukewarm consumer spending post-pandemic lockdowns, suggesting that instead of the anticipated boom post-reopening, Chinese consumers are seemingly concentrating more on replenishing their savings.
Contrarily, Yellen remains optimistic about the U.S. economy, ruling out a recession given the strength of the labor market. She acknowledged the cooling growth rate but emphasized that the economy is on a solid trajectory toward curbing inflation without causing significant labor market slack.
Last updated: 9:30AM EST
As investors look to a slew of corporate earnings this week, markets were mixed at open as the Nasdaq 100 (NDX) and S&P 500 (SPX) are up 0.28% and 0.08%, respectively, while those on the Dow Jones Industrial Average (DJIA) are down by 0.04% at 9:30 a.m., EST, July 17.
Meanwhile, the gauge of manufacturing activity in New York state, New York Fed’s Empire State business conditions index, dipped by 5.5 points in July but stayed positive at 1.1 while economists had forecasted the index to remain flat. A reading above zero indicates that conditions are improving when it comes to manufacturing activity.
First published: 4:22AM EST
U.S. Futures are jittery at the start of the week as traders look forward to a week full of corporate earnings. Futures on the Nasdaq 100 (NDX) and S&P 500 (SPX) are up 0.15% and 0.01%, respectively, while those on the Dow Jones Industrial Average (DJIA) are down by 0.07% at 4:00 a.m. EST, July 17.
The three major averages finished the last trading week in a positive zone, bolstered by cooling inflation numbers and a decent start to the second-quarter earnings season. Economists are now viewing the possibility of a “soft landing” for the U.S. economy as opposed to prior expectations of a mild recession later this year. On the other hand, the Chinese economy continues to slow down, with second quarter GDP growing only 6.3% compared to the prior-year quarter, far below expectations, and growing a marginal 0.8% over the first quarter.
Notably, the three big banks that reported last Friday, namely, JPMorgan Chase & Co. (JPM), Wells Fargo (WFC), and Citigroup (C), surpassed Wall Street expectations on both the top and bottom lines. This week, some of the big names, such as Bank of America (BAC), Morgan Stanley (MS), Goldman Sachs (GS), and American Express (AXP), will report their results. Also, non-financial companies, including IBM (IBM), Las Vegas Sands (LVS), United Airlines (UAL), Tesla (TSLA), Netflix (NFLX), American Air Lines (AAL), Johnson & Johnson (JNJ), and Taiwan Semi (TSM), will showcase their results.
On the economic front, Retail Sales data, Mortgage Applications, and Weekly Initial Jobless Claims will be released.
Elsewhere, European indices are trading mixed on Monday as traders eye Q2 results from European companies this week alongside the action-packed earrings season from corporate America. Big pharma Novartis (NVS) and semiconductor equipment manufacturer ASML Holdings (ASML) will report this week.
Asia-Pacific Markets End in Red on China Woes
Asia-Pacific indices ended in the red on Monday following lower-than-expected GDP figures from China. In the meantime, Hong Kong’s stock market remained closed for trading owing to the warning of Typhoon Talim. Also, Japan’s indices remained closed for trading in honor of Marine Day.
The Chinese economy grew 6.3% in Q2FY23 compared to the year-ago period, as against expectations of 7.3% growth. Similarly, for the quarter ending June 2023, the economy grew a marginal 0.8% over the first quarter.
China’s Shanghai Composite and Shenzhen Component indices ended lower by 0.87% and 0.63%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.
