Last Updated 4:05 PM EST
Stock indices finished today’s trading session in the red. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) fell 0.19%, 0.26%, and 0.11%, respectively. The utilities sector (XLU) was the session’s laggard, as it lost 2.29%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 1%.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.18%, an increase of 10 basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.89%.
Last updated: 3:00PM EST
Stocks are mixed as we head into the final hour of today’s trading as investors digest today’s economic data. Earlier today, Markit released its preliminary monthly report for the U.S. Services Purchasing Managers’ Index, which measures the activity levels of purchasing managers in the service sector. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 52.3, which was lower than the expected 52.4.
Last Updated 12:51PM EST
Equity markets are in the green so far in today’s trading session. On Thursday, the Institute for Supply Management released its monthly report for the ISM Non-Manufacturing Purchasing Managers’ Index, which measures the overall economic condition of the non-manufacturing sector. A number over 50 represents an expansion, whereas anything below 50 signals a contraction. The report came in at 52.7, lower than the expected 53 and lower than last month’s reading of 53.9.
It’s worth noting that this indicator has been in an overall downtrend since peaking in December 2021, when it hit a high of 69.1. If this trend continues, it might not take long before the non-manufacturing sector enters into a period of sustained contraction.
Furthermore, the ISM Non-Manufacturing Employment report came in at 50.7, which also missed expectations of 51.1.
Last updated: 9:30AM EST
Stocks opened lower after key economic data with the Nasdaq 100 (NDX) and S&P 500 (SPX) down by 0.5% each and the Dow Jones Industrial Average (DJIA) declined by 0.3% at 9:30 a.m., EST, August 3.
The initial jobless claims data for the week ending July 29 rose by 6,000 to 227,000, above economists’ forecasts of 225,000 and the prior week’s revised figure of 221,000. Continuing jobless claims for the week ending July 29 stood at 1.7 million as compared to the revised figure of 1.679 million in the prior week.
Even the preliminary reading of Q2 nonfarm labor productivity indicated a rise of 3.7% quarter-over-quarter, above the expected increase of 1.3%. Unit labor costs were up by 1.6% in the second quarter, reflecting a rise in hourly compensation of 5.5% and a 3.7% increase in productivity. Over the past four quarters, labor costs have gone up by 2.4%.
First published: 4:03AM EST
U.S. Futures are trending in the red this morning, reeling from Fitch’s credit rating downgrade-induced sell-off. While Treasury Secretary Janet Yellen and several other experts are dismissing the downgrade as flawed, markets worldwide are reacting harshly to the news. All three major averages closed in the negative zone yesterday. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.64%, 0.41%, and 0.29%, respectively, at 4:00 a.m. EST, August 3.
Meanwhile, traders keenly await financial results from tech giants Apple (AAPL) and Amazon.com (AMZN) today, after the bell. Also reporting today are Airbnb (ABNB), Moderna (MRNA), Square (SQ), Kellogg’s (K), Coinbase Global (COIN), and DraftKings (DKNG).
Yesterday, shares of chip maker Qualcomm (QCOM) dipped in after-hours trading after it missed Q3FY23 sales expectations and gave a subdued outlook. On the other hand, DoorDash stock (DASH) gained in extended trading after reporting better-than-expected Q2 revenue. The food delivery company locked in its highest order frequency to date during the second quarter.
Economic reports in focus today include weekly initial jobless claims, July’s ISM Services PMI data, and durable goods orders.
Elsewhere, European indices are trading in the red on Thursday morning, following their U.S. counterparts. The Bank of England is set to disclose its monetary policy decision later today, with a 25-basis-point interest rate hike expected.
Asia-Pacific Markets End Mostly in Red
A majority of Asia-Pacific indices finished in the negative zone on Thursday, following the news of the U.S. credit rating downgrade.
Hong Kong’s Hang Seng index ended down by 0.41%, while China’s Shanghai Composite and Shenzhen Component indices bucked the trend and ended higher by 0.58% and 0.53%, respectively. As per the Caixin survey, China’s service sector activity in July expanded robustly as compared to June, pushing the mainland indices higher.
On the other hand, Japan’s Nikkei and Topix indices ended lower by 1.68% and 1.45%, respectively.
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