Last Updated 4:05 PM EST
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Stock indices finished today’s trading session in the red, falling for the third straight session. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.08%, 0.78%, and 0.84%, respectively.
The consumer discretionary sector was the session’s laggard, as it lost 1.69%. Conversely, the energy sector was the session’s leader, with a gain of 1.22%.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.28%, an increase of three basis points. Conversely, the Two-Year Treasury yield decreased, as it hovers around 4.93%.
Last updated: 1:42PM EST
Stocks are in the red so far in today’s trading. Earlier today, the Census Bureau, under the Department of Commerce, released its Q2 2023 report on U.S. retail e-commerce sales. The adjusted figures indicate that e-commerce sales amounted to $277.6 billion, reflecting a 2.1% increase from Q1 2023.
In contrast, the total retail sales for the same quarter stood at approximately $1,798.2 billion, remaining relatively stable from the previous quarter. When juxtaposed with Q2 2022 data, e-commerce sales have shown an impressive 7.5% growth. Notably, e-commerce transactions constituted 15.4% of the total sales for this quarter.
On an unadjusted basis, e-commerce sales for Q2 2023 totaled $269.5 billion, marking a 6.6% growth from Q1 2023. This segment experienced a 7.7% increase from Q2 2022, whereas the overall retail sector saw a modest rise of 0.5% during the same period. E-commerce sales represented 14.7% of the total sales in this context.
Last updated: 11:35AM EST
Stock indices have given up their opening gains and turned red at the time of writing. It appears that sentiment on Wall Street is starting to shift towards caution. In fact, BTIG advised that “buying the dip” might not be the smartest move in this climate. It pointed out that the risks of plunging further outweigh potential gains, especially since sectors like tech are showing shaky momentum after crossing critical thresholds.
For context, the S&P 500, once perched at $4,607, has dipped to around 4,400. BTIG also speculated that we could soon see the index hovering around the $4,325 mark, with the possibility of it revisiting the $4,200 range in the upcoming weeks. This echoes a Wells Fargo note from yesterday, which assigned S&P 500 price target between $4,000 and $4,200.
Last updated: 9:30AM EST
Stocks opened higher on Thursday morning, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) up by 0.3%, 0.32%, and 0.25%, respectively, at 9:30 a.m., EST, August 17.
Meanwhile, the latest round of economic data indicated that the Philadelphia Federal Reserve Manufacturing Index moved into positive territory for the first time after 11 straight months of contraction. Indeed, it increased to 12 in August from -13.5 in July. Economists had forecast a reading of -10 in August.
Furthermore, jobless claims fell by 11,000 to 239,000 in the week ending August 12, indicating that the labor market continued to be strong. Economists were forecasting new claims in the week ending August 12 of 240,000.
First published: 4:11AM EST
U.S. Futures are inching higher on Thursday morning as traders look past the possibility of future interest rate hikes. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.01%, 0.04%, and 0.14%, respectively, at 4:00 a.m., EST, August 17.
The minutes from the Fed’s July FOMC meeting carried a hawkish tone and reiterated the fact that future rate hikes may be required to bring down inflation. The key Federal Funds rate is currently at its two-decade-high level of 5.25%-5.5% range. The news had a negative impact on most stocks, with investors expressing concern about the possibility of additional monetary tightening. Meanwhile, Treasury yields experienced an upward surge.
Moving on, the weekly initial jobless claims will be released today. Expectations are that jobless claims will come in at 240,000, in the week ending August 12, lower than the previous week’s figure of 248,000 claims.
Further, traders await earnings reports from big box retailer Walmart (WMT), which is expected to outperform despite the headwinds. Also, luxury brand Tapestry (TPR), which is soon going to acquire Capri Holdings (CPRI), will report its Q4FY23 results before the bell, today. Meanwhile, Applied Materials (AMAT), Ross Stores (ROST), and Keysight Technologies (KEYS) will report after the market closes.
Shares of networking titan Cisco Systems (CSCO) gained in after-hours trading yesterday after outperforming earnings expectations. On the contrary, shares of semiconductor company Wolfspeed (WOLF) took a 13% nosedive in after-hours trading after releasing some disappointing guidance. Remarkably, Target (TGT) shares soared yesterday after the retailer posted a mixed set of second-quarter numbers and displayed impressive margins. Tesla stock (TSLA) keeps losing steam as it continues with its price reduction strategy for its Model S and Model X vehicles in China. Further, Kroger’s (KR) Albertsons Deal is in jeopardy as seven secretaries of state have urged the FTC to block the merger due to competitive concerns.
Elsewhere, European indices are trading in negative territory on Thursday following the U.S. Fed Reserve’s hawkish stance. Markets had largely anticipated an announcement of interest rate stabilization moving forward. Global equities, however, fell as a result of the Fed’s opposing tone.
Asia-Pacific Markets Ended Mixed on Thursday
Asia-Pacific indices finished mixed on Thursday following the Fed’s indication of probable rate hikes. Japanese stocks finished lower after statistics showed that the country’s trade balance slipped into a deficit in July. Exports fell 0.3%, while imports declined 13.5% owing to a slump in demand domestically and from the neighboring Chinese economy.
Japan’s Nikkei and Topix indices finished lower by 0.44% and 0.34%, respectively.
Hong Kong’s Hang Seng index ended lower by 0.02%, while China’s Shanghai Composite and Shenzhen Component indices finished higher by 0.43% and 0.61%, respectively.
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