Last updated: 4:05PM EST
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Stock indices finished today’s trading session in the red, as the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.19%, 0.28%, and 0.51%, respectively.
The financial sector (XLF) was the session’s laggard, as it lost 0.93%. Conversely, the real estate sector (XLRE) was the session’s leader, with a gain of 0.29%.
Furthermore, the U.S. 10-Year Treasury yield decreased slightly to 4.33%, but the Two-Year Treasury yield inched closer to its 52-week high of 5.118%, as it hovers around 5.04%.
Last updated: 2:25PM EST
Stocks are in the red as Wall Street’s sentiment begins to shift. Indeed, Bank of America gave a heads-up to investors about the S&P 500 dropping below its first support point of $4,450, pointing to $4,325 and $4,200 as the next big technical markers. The analysts noted that after crashing through $4,450, the S&P also slid below its 13-week moving average of $4,410 – something we haven’t seen since the end of March.
However, it’s not just BofA that’s sensing a shift in the wind. JPMorgan recently suggested that piercing through the $4,404-$4,421 zone could yank the rug from under the bullish momentum we’ve seen from March to August.
Last updated: 12:15PM EST
Stock indices are in the red so far in today’s trading session. On Thursday, the National Association of Realtors released its U.S. Existing Home Sales report, which measures the change in sales of existing residential buildings during the previous month on an annualized basis. Existing home sales came in at 4.07 million for the month of July, below the expected 4.15 million.
As a result, existing home sales decreased month-over-month by -2.2% after a -3.3% decrease in June. Indeed, existing home sales have increased only twice in the past 18 months as higher interest rates continue to make homeownership difficult. On a year-over-year basis, sales fell 20.4%.
Last updated: 9:30AM EST
Stocks are mixed at open on Tuesday as the earnings of major retailers are in focus. Indeed, the Nasdaq 100 (NDX) and the S&P 500 (SPX) are up by 0.64% and 0.35%, while the Dow Jones Industrial Average (DJIA) is down by 0.06%, respectively, at the time of writing.
Meanwhile, JP Morgan analysts highlighted concerns over persistent inflation in a recent assessment. The financial giant noted that as inflation gradually diminishes, the challenge intensifies. While reiterating their belief in moderation of inflation, the financial institution expressed apprehension that the room for a comfortable transition is narrowing.
According to the bank, moving from 10% to 5% inflation is easier compared to the incremental journey from 5% to 2%. Although the bank anticipates a downward trajectory for inflation, it cautioned investors about a potentially less swift decline. The bank also warned of complicating factors, such as surging commodity prices, which could influence central banks to maintain higher rates for an extended period, impacting market dynamics.
First published: 4:08AM EST
U.S. Futures are trending higher on Tuesday, following the enthusiasm in the Nasdaq Composite and SPX indexes. The two averages broke the four-day losing streak and finished the day higher on August 21, thanks to the rally in tech stocks, while the Dow ended with a marginal decline. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.35%, 0.25%, and 0.15%, respectively, at 4:00 a.m. EST, August 22.
Remarkably, yesterday represented the 10-year Treasury’s highest level since 2007. And WTI crude oil continues its upward trajectory, hovering over $80.82 per barrel as of the last check.
Traders are focused on Fed Chair Jerome Powell’s speech at the Jackson Hole symposium this Friday. Markets worldwide will closely follow any cues on the future of the monetary policy and the overall health of the U.S. economy. Traders are also anxiously awaiting the earnings results from chip maker Nvidia (NVDA), due for release on August 23. Nvidia has been one of the major beneficiaries of the AI race. NVDA stock jumped 8% yesterday, following analysts’ optimism. Wall Street expects the chip giant to post adjusted earnings of $2.08 per share on revenues of $11.14 billion, showing a significant jump over the prior-year quarter’s figures.
On the earnings front, retailers Lowe’s (LOW), Macy’s (M), BJ’s Wholesale (BJ), Urban Outfitters (URBN), and Dicks Sporting Goods (DKS) report before the bell today. Also, Chinese internet giant Baidu (BIDU) will report Q2FY23 earnings before the market opens. Analysts remain optimistic about BIDU’s long-term trajectory, while short-term headwinds persist.
On the economic front, we will receive data on Existing Home Sales from July.
Elsewhere, European markets are trading in the green on Tuesday, following their U.S. counterparts. Importantly, shares of Ubisoft (FR:UBI) are trading over 6.4% today after American tech giant Microsoft (MSFT) submitted a revised deal to U.K. regulators regarding its acquisition of Activision Blizzard (ATVI). The proposal involves selling off several gaming rights to Ubisoft to comply with anti-competitive policies.
Asia-Pacific Markets End in the Green
Asia-Pacific indices finished the trading session in the green on Tuesday. On August 21, Arm Holdings Ltd., backed by Japan’s SoftBank Group (SFTBY), filed for an initial public offering (IPO) at the Nasdaq. The news sent shares of Softbank higher, as ARM’s IPO is anticipated to be the biggest of 2023 and bring some life to the IPO market.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended up by 1.03%, 0.88%, and 0.53%, respectively.
Similarly, Japan’s Nikkei and Topix indices finished higher by 0.92% and 1.08%, respectively.
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