Last Updated 4:05 PM EST
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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 1.18%, 0.58%, and 0.07%, respectively.
The utilities sector (XLU) was the session’s laggard, as it lost 0.77%. Conversely, the technology sector (XLK) was the session’s leader, with a gain of 1.6%.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.19%, an increase of three basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.97%.
Last Updated 3:00PM EST
Stocks are mixed as we head into the close. In addition, consumer sentiment regarding inflation seems to be improving. Data from the Federal Reserve Bank of New York, released on Monday, revealed that inflation expectations for the coming year have dipped to their lowest since April 2021. Furthermore, there’s a notable decrease in expectations for earnings growth. Nevertheless, consumers perceive an improvement in their financial status compared to a year ago. The housing market expectations have also adjusted, with median home price growth projections settling at 2.8% for July.
Employment prospects appear positive as well. The data highlights decreasing unemployment expectations, reaching their most favorable stance since April 2022. While expectations surrounding household income remain unchanged, anticipated household spending is on an upward trajectory. Concurrently, there’s a decrease in the anticipated likelihood of missing debt payments in the upcoming quarter. Overall, the findings from the New York Fed underscore an improvement in consumer perception of their financial circumstances, with an uptick in optimism regarding stock prices over the next year.
Last updated: 11:49AM EST
Stocks are in the green at the time of writing. Earlier today, Goldman Sachs threw its hat into the ring with predictions for the Federal Reserve’s moves in the coming year. Jan Hatzius, the chief economist, suggested that core inflation might dip enough for the Fed to consider cutting rates by Q2 2024.
By this time, he believes that core PCE inflation will have dropped below 3% year-over-year, and wage growth will also have decreased. Interestingly, he thinks these conditions mirror those from the ’90s when rates were slashed as inflation dwindled.
Previously, Goldman believed rate cuts would only occur if there was an economic growth scare. But, given the chatter among Fed officials about inflation’s decline potentially justifying rate cuts, they’ve recalibrated their expectations.
Yet, there’s still some skepticism in the air. What if inflation doesn’t drop as anticipated? Furthermore, even if it does, the Fed might not want to cut rates right away if the economy is booming, unemployment’s at an all-time low, and everyone’s still recovering from the previous inflation shock.
Last updated: 9:35AM EST
Markets were down at open on Monday, with the Nasdaq 100 (NDX) and S&P 500 (SPX) down by 0.24% and 0.13%, respectively, while the Dow Jones Industrial Average (DJIA) declined by 0.03% at 9:35 a.m., EST, August 14.
First published: 4:18AM EST
U.S. Futures are trending mixed on Monday morning as traders anticipate a slew of retail earnings releases this week. Plus, the U.S. Retail and Food Services Sales Report for July 2023 will be released on Tuesday. Both retail earnings and retail sales data will suggest the American consumer’s spending habits and purchasing power. Futures on the Nasdaq 100 (NDX) and S&P 500 (SPX) are up by 0.13% and 0.05%, respectively, while those on the Dow Jones Industrial Average (DJIA) are down by 0.02% at 4:00 a.m., EST, August 14.
The three major averages ended the previous week mixed. Both the Nasdaq Composite and SPX finished down, while the Dow continued with its winning streak.
The week ahead will see earnings from big box retailers, including Home Depot (HD), Target (TGT), Walmart (WMT), Victoria’s Secret (VSCO), TJX Companies (TJX), and Ross Stores (ROST). Also, MBA Mortgage Applications, Housing Starts, Building Permits for July, and weekly Initial Jobless Claims will be released during the week.
Notably, the WTI crude oil price is inching lower today, hovering over $82.33 per barrel as of the last check. The cooler-than-expected CPI print, coupled with the higher-than-anticipated PPI print and resilient consumer, puts the Fed’s monetary policy decision in jeopardy. Traders are guessing what the Fed’s move might be at the upcoming FOMC meeting slated for September 19-20.
Turning towards American stocks, meme stock AMC plunged, whereas APE units jumped in extended trading on Friday, August 11, after a judge approved its revised APE conversion plan. Meanwhile, tech giant Amazon.com’s (AMZN) contactless biometric technology, Amazon One, which was launched in 2020, is slowly gaining traction. The early adoption trend for Amazon One is encouraging, signaling that AMZN could leverage the technology to conquer the payments market and emerge as a leading payment solutions provider.
Further, electric vehicle maker Tesla (TSLA) cut the prices of two higher-end Model Y vehicles in China by 14,000 yuan, starting August 14, in a bid to beat the heating competition. In the meantime, United States Steel (X) announced that it is exploring strategic options after receiving several unsolicited offers, including one from rival Cleveland Cliffs that was turned down by the company.
Elsewhere, European indices are trading higher on Monday after Germany’s wholesale price inflation came in better than expected. In July, Germany’s whole-price inflation fell 0.2%, much lower than the 1.4% drop expected, raising hopes of an economic recovery.
Asia-Pacific Markets End in the Red on Monday
Asia-Pacific indices finished in the red on Monday following a slump in the shares of Country Garden Holdings. The Chinese real estate company suspended the trading of 11 onshore bonds today, dragging its shares down to new 52-week lows.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended lower by 1.58%, 0.34%, and 0.50%, respectively.
Similarly, Japan’s Nikkei and Topix indices finished lower by 1.27% and 0.98%, respectively.
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