Stock indices finished today’s trading session in the red. Indeed, the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 2.19%, 1.35%, and 1.08%, respectively.
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Furthermore, the U.S. 10-Year Treasury yield increased to 4.23%, an increase of three basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 5.01%.
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 5.9% in the third quarter.
This is higher than its previous estimate of 5.8%, which can be attributed to recent releases from the U.S. Census Bureau and the National Association of Realtors.
Last Updated: 2:53PM EST
Stocks are in the red so far in today’s session. Long-term mortgage rates have soared to peaks not seen since 2001. The Freddie Mac Primary Mortgage Survey reveals that as of August 24, 30-year fixed-rate mortgages have risen to an average of 7.23%, a notable leap from the previous week’s 7.09% and an even more dramatic climb from last year’s 5.55%. On the other hand, 15-year fixed-rate mortgages are hovering around 6.55%, which, again, shows a significant surge compared to both the previous week’s 6.46% and last year’s 4.85%.
Freddie Mac’s head numbers guy, Sam Khater, weighed in on this, saying that if the economy keeps flexing its muscles like it has been, we might see these rates climb even more. On the flip side, seems like people aren’t racing to get those mortgages either. Mortgage applications have taken roughly a 4% dip, hitting their most “rock-bottom” in close to three decades.
Last updated: 12:08PM EST
Earlier today, Patrick Harker, President of the Federal Reserve Bank of Philadelphia, provided insightful commentary regarding the Federal Open Market Committee’s current stance. Speaking on CNBC, he underscored the appropriateness of the present federal funds rate, suggesting that current interest rate levels should be enough for the time being and stating that “we should keep it there for a while.” Additionally, he highlighted the Federal Reserve’s ongoing efforts to reduce its balance sheet, a move that inherently signifies a tightening policy.
Beyond the Fed’s actions, banks are tightening their lending, though Harker’s still trying to gauge the depth of this trend. He also addressed the recent uptick in the 10-year Treasury yield, viewing it as a potential moderating force for the economy, though he remains vigilant about its implications. These observations align with his earlier statements suggesting that the FOMC might be in a position to maintain rate stability in the foreseeable future.
Last updated: 9:30AM EST
Stocks opened higher on Thursday morning, with the Nasdaq 100 (NDX) the S&P 500 (SPX) up by 0.48% and 0.24%, while and the Dow Jones Industrial Average (DJIA) was down by 0.06%, respectively, at 9:30 a.m., EST, August 24.
Meanwhile, orders for durable goods slid by 5.2% in May to $285.9 billion, which was more than the expected drop of 4%. Orders for durable goods had risen by 4.4% in June. Headline orders, which include transportation, fell by 5.2% in July. However, core orders went up by 0.1% in July.
When it comes to jobless claims data, initial jobless claims fell by 10,000 to 230,000 in the week ending August 19 versus expectations of 241,000, compared with 240,000 in the prior week (revised from 239,000).
Continuing jobless claims for the week ending August 19 came in at 1.7 million versus 1.708 million expected and 1.71 million in the prior week.
First published: 4:12 AM EST
U.S. Futures are marching higher on Thursday morning, following the blowout quarterly results from AI behemoth Nvidia (NVDA). Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 1.25%, 0.69%, and 0.10%, respectively, at 3:30 a.m. EST, August 24.
Nvidia posted a 101% jump in revenue and a 422% leap in net income. Not just that, NVDA forecasted a 170% growth in Q3FY24 revenues, pushing the shares up 6.6% in extended trading. In contrast, WTI crude oil is continuing its decent today, hovering over $78.50 per barrel as of the last check.
Notably, software company Snowflake stock (SNOW) rose on a solid earnings win, while shares of chip maker Analog Devices (ADI) slid on, missing both earnings and revenue estimates.
Meanwhile, retailers reported a mixed set of numbers. Foot Locker (FL) stumbled 28% after its Q2FY23 sales missed estimates. The company even lowered its FY23 guidance. Also, exercise equipment company Peloton (PTON) sank 23% on mixed results and disappointing forecasts. On the other hand, Kohl’s (KSS) shares rose 5.1% after the retailer posted better-than-anticipated second-quarter numbers.
Today, traders will be looking forward to earnings releases from companies including Intuit (INTU), Marvell Technology (MRVL), Burlington Stores (BURL), Gap (GPS), and Nordstrom (JWN).
On the economic front, we will receive data on the Initial Jobless Claims for the week ending August 19 and the Durable Goods order. Expectations are that jobless claims will come in at 240,000, marginally higher than the previous week’s figure of 239,000 claims.
Elsewhere, European markets are trading higher on Thursday morning following Nvidia’s better-than-expected results and outlook.
Asia-Pacific Markets Finish Higher on Thursday
Asia-Pacific indices finished the trading session in the green on Thursday. The optimism from Nvidia’s stellar results seems to be rubbing off on all global stocks.
On another note, India became the first country to successfully land its Chandrayaan-3 spacecraft on the south pole of the moon! This feat was achieved with a relatively stringent budget compared to peers like Russia, the U.S., and China. The news has pushed a majority of Indian stocks on an upward trend today.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended higher by 2.11%, 0.12%, and 1.02%, respectively.
Similarly, Japan’s Nikkei and Topix indices finished higher by 0.87% and 0.42%, respectively.
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