Last Updated 4:02PM EST
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Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.11%, 0.57%, and 0.05%, respectively.
The technology sector (XLK) was the session’s laggard, as it lost 1.84%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 2.31%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 4.27%, a drop of three basis points. Conversely, the Two-Year Treasury yield increased, as it hovers around 5.01%.
Last updated: 11:58AM EST
Stocks are mixed so far in today’s trading session. On Tuesday, the National Federation of Independent Business (NFIB) released its Small Business Optimism Index for the month of August. As the name suggests, it is a survey that measures the level of optimism among small businesses.
In August, the index decreased by 0.6 points to a level of 91.3, which was worse than expected. As a result, it has remained below its 49-year average of 98 for the last 20 months. In addition, 23% of small business owners cited inflation as their single largest concern related to operations. This was up from last month’s 21%.
Still, 27% of businesses in the survey said they raised selling prices. Of the small businesses that saw lower profits, 24% attributed the decline to higher material costs, while 15% pointed to labor costs. Weaker sales made up 28% of the blame.
This data highlights that consumer spending is still strong since 72% of respondents who saw a decline in profits didn’t blame weaker sales. However, it demonstrates the impact that inflation has on profitability, as the higher revenue figures actually led to operating deleverage, meaning that earnings didn’t grow faster than sales.
Last updated: 9:30AM EST
Stocks opened lower on Tuesday morning, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) retreating by 0.4%, 0.22%, and 0.09%, respectively, at 9:30 a.m. EST, September 12.
First published: 4:20AM EST
U.S. Futures are trending lower on Tuesday morning after the three major averages finished the trading session on a positive note yesterday. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.13%, 0.21%, and 0.24%, respectively, at 4:00 a.m. EST, September 12.
This week, the sole focus will be on August’s Consumer Price Index (CPI) and Producer Price Index (PPI) data, due Wednesday and Thursday, respectively. Markets are expecting a pause in rate hikes in the FOMC meeting due September 19-20. However, any unexpected data thrown by these two reports could turn the Federal Reserve’s decision.
Meanwhile, Software giant Oracle’s (ORCL) stock fell 9% in extended trade yesterday after missing Q1FY24 sales estimates. On the other hand, shares of Casey’s General (CASY) jumped 3.2% in Monday’s extended trading hours after beating Q1FY24 earnings estimates.
Remarkably, Tesla (TSLA) stock gained over 10% in regular trading on Monday after receiving a new Street-high price target from Morgan Stanley. Also, Disney (DIS) shares gained on the news that it reached a deal with cable provider Charter (CHTR) over carriage costs and restored channels. Similarly, chip maker Qualcomm (QCOM) rose on Monday after the company stated that it would supply tech giant Apple (AAPL) with Snapdragon 5G chips for smartphone launches through 2026.
In stark comments made yesterday, JPMorgan (JPM) CEO Jamie Dimon criticized the new Basel III proposal. As per Dimon, the new rules would require JPM to maintain 30% more capital compared to European banks, making American banks “uninvestable.” The new stringent requirements would hurt banks’ lending ability, let alone make any difference to their financial soundness, Dimon added.
Elsewhere, European indices are trading in the green this morning following the positive momentum in its U.S. counterparts. In the meantime, British chip designer Arm Holdings’ IPO was oversubscribed by five times, leading the firm to close its IPO order booking a day earlier on September 12.
Asia-Pacific Markets End Mixed on Tuesday
Asia-Pacific indices finished mixed on Tuesday. Traders eagerly await the U.S. inflation data for August to gauge the future course of monetary policy.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended lower by 0.29%, 0.18%, and 0.08%, respectively.
Japan’s indices bucked the trend and ended in a positive zone. Nikkei and Topix indices closed higher by 0.95% and 0.82%, respectively.
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