Stock Market News Today, 8/06/23 – Indices Close Higher as Nasdaq Leads Rally

Last Updated 4:03 PM EST

Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.27%, 0.62%, and 0.5%, respectively.

The real estate sector (XLRE) was the session’s laggard, as it lost 0.6%. Conversely, the consumer discretionary sector (XLY) was the session’s leader, with a gain of 1.47%.

Furthermore, the U.S. 10-Year Treasury yield decreased to 3.71%, a drop of more than eight basis points. Similarly, the Two-Year Treasury yield also fell, as it hovers around 4.51%.

The Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real-time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2.2% in the second quarter.

This is unchanged compared to yesterday’s estimate, which can be attributed to this morning’s wholesale trade report from the U.S. Census Bureau.

Last updated: 2:34PM EST

Stocks remain in the green so far in today’s trading. At the time of writing, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 1%, 0.5%, and 0.5%, respectively.

In addition, WTI crude oil is lower today, as it hovers around the $71 per barrel range. The commodity’s recent weakness has caused prices at the pump to decline when compared to last week.

Indeed, the national average for regular gas was last $3.564 per gallon, down from last week’s reading of $3.574. The highest prices can be found in California, where prices are substantially higher than the national average, at $4.876 per gallon. On the other hand, Mississippi is the state with the lowest gas prices, at $2.966 per gallon.

Last updated: 11:20AM EST

Stocks remain in the green so far in today’s trading. At the time of writing, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 1.1%, 0.4%, and 0.3%, respectively.

In a recent interview with CNBC, Treasury Secretary Janet Yellen alerted to potential pressure on U.S. banks stemming from the faltering commercial real estate market. She suggested that the cultural shift towards remote work has lowered the demand for office space, particularly in an environment of increasing interest rates, leading to looming problems.

Additionally, Fitch Ratings recently downgraded its U.S. REIT sector outlook to ‘Deteriorating,’ reflecting the ongoing tightening of commercial property lending conditions, escalating interest rates, and general macroeconomic pressures.

Despite this impending stress, Yellen expressed confidence in the banking sector’s resilience. She noted that banks are proactively gearing up for necessary restructuring and potential future difficulties.

Yellen also stated that banking supervisors are keeping a close eye on lenders to ensure they’re adequately prepared for any repercussions from the commercial property sector. Moreover, she hinted at the possibility of consolidation among smaller banks in the face of revenue strain.

Last updated: 9:30AM EST

The Nasdaq 100 (NDX) and the S&P 500 (SPX) indices were up by 0.23% and 0.11%, respectively, while the Dow Jones Industrial Average (DJIA) was up by 0.07% at 9:30 a.m., EST, June 8.

Last updated: 8:30AM EST

Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) are down 0.2% and 0.01%, respectively, while those on the Dow Jones Industrial Average (DJIA) were down by 0.2% at 8:30 a.m., EST, June 8.

The jobless claims data released on Thursday showed that jobless claims hit the highest level since October 2021 with initial jobless claims jumping by 28,000 to 261,000 in the week ending June 3, exceeding the median forecast of 236,000. Continuing job claims came in at 1.76 million versus a forecast of 1.8 million. 

First published: 5:12AM EST

U.S. Futures are down this morning in the absence of any suitable stimulus to spur direction. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) are down 0.18% and 0.04%, respectively, while those on the Dow Jones Industrial Average (DJIA) are near the flatline at 4:30 a.m., EST, June 8. On Wednesday, Boeing (NYSE:BA) was sued for allegedly stealing trade secrets from Wilson Aerospace, a Colorado-based family-run tools company. Earnings season is nearly over, with a few stocks still making huge impacts on the markets.

Shares of GameStop (NYSE:GME) plunged in after-hours trading after the company reported mixed earnings for Q1FY23 and the news of its CEO’s exit. Similarly, Smartsheet (NYSE:SMAR) stock cratered nearly 20% in extended trading yesterday on a conservative outlook for Fiscal 2024, despite beating estimates. Moreover, shares of Campbell Soup (NYSE:CPB) dipped about 9% on Wednesday after the processed food company reported mixed results for Q3FY23 and a weak profit guide for Fiscal 2023.

Meanwhile, traders await the Fed’s interest rate decision scheduled for June 14 after they assess the weekly initial jobless claims data due today and the consumer price index (CPI) and producer price index (PPI) numbers due on June 13 and 14, respectively. A majority of market participants expect the Fed to hold rates steady at the upcoming FOMC meeting.

On the earnings front, DocuSign (NYSE:DOCU), FuelCell Energy (NYSE:FCEL), and Vail Resorts (NYSE:MTN) report today.

Elsewhere, European indices are trading mixed today, as global markets experience a slight pullback in the rally experienced at the beginning of the week.

Asia-Pacific Markets Trade Lower on Thursday

Asia-Pacific indices ended the trading session mixed today on a series of economic data sets. Australia’s trade surplus declined more than expected in April. On the other side, Japan’s annualized gross domestic product (GDP) figure for the first quarter was revised upwards to 2.7% (from 1.6%). Also today, the Reserve Bank of India held rates steady at 6.5%, in line with expectations.

Notably, the U.S. Commerce Department released a statement on International Trade that showed that China’s share of U.S. imports is continuing to decline. China contributed 15.4% of U.S. goods imports for the year ending April 2023, its smallest share since October 2006. The figures signal a victory for America’s efforts to reduce reliance on Chinese products.

Hong Kong’s Hang Seng index and China’s Shanghai Composite ended the day up 0.25% and 0.49%, respectively, while the Shenzhen Component index closed up by 0.13%.

At the same time, Japan’s Nikkei and Topix indices ended down by 0.85% and 0.67%, respectively.

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