Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.82%, 0.84%, and 0.96%, respectively.
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The healthcare sector (XLV) was the session’s laggard, as it only gained 0.3%. Conversely, the real estate sector (XLRE) was the session’s leader, with a gain of 1.85%.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.29%, an increase of four basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 5.02%.
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 4.9% in the third quarter.
This is lower than its previous estimate of 5.6%, which can be attributed to recent releases from the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and the U.S. Department of the Treasury’s Bureau of the Fiscal Service.
Last updated: 2:20PM EST
Stocks are in the green so far in today’s trading amid a slew of new economic data. Earlier today, Fitch Ratings ramped up its global growth forecast for 2023, attributing this boost to a stronger-than-anticipated economic performance in the U.S., Japan, and other emerging markets, aside from China. Despite this, the cloud of China’s real estate sector woes looms large, darkening the global financial landscape.
Fitch’s chief economist, Brian Coulton, emphasized that the dwindling fortunes of China’s property sector, previously deemed a linchpin in the global economy, is becoming a grave concern, particularly as economies start grappling with the repercussions of interest rate hikes in the U.S. and Europe.
While the growth forecast has seen a modest uptick by 0.1 percentage points to 2.5%, revised projections across various economies – including a 0.5 percentage point uplift to 2.0% in the U.S. and a 0.7 point hike to 2.0% in Japan – serve to balance out the dampened expectations for China and the Eurozone.
Looking ahead to 2024, Fitch has tempered its optimism, slashing the global growth forecast by 0.2 percentage points to land at 1.9%. Across the board, predictions for individual economies have been pared down, reflecting a cautious stance towards the U.S. and Eurozone markets, coupled with a continued cautious outlook on China. It’s also worth noting that Coulton believes that the near future holds a probable U.S. recession.
Meanwhile, the European Central Bank remains entrenched in its battle against inflation, hinting at enduring high rates, and the Bank of England seems poised to maintain an elevated rate structure to counterbalance sustained wage inflation amid sluggish growth.
Last updated: 11:51AM EST
Stocks opened higher on Thursday morning after another round of economic data. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.73%, 0.7%, and 0.74%, respectively, at 11:50 a.m. EST, September 14.
Wholesale inflation continued to rise in August, up by 0.7%, marking its largest gain in the past 14 months, driven by higher energy costs. This increase in wholesale inflation was higher than economists’ forecasts of a 0.4% rise in the Producer Price Index (PPI). On an annual basis, wholesale inflation climbed to 1.6% from 0.8% in the prior month.
Core PPI (excluding food and energy costs) went up by 0.3% in August, slightly above economists’ forecasts. Core PPI has climbed to 3% over the past 12 months from 2.9%. An uptick in PPI often gives an indication of future inflation trends.
Meanwhile, retail sales continued to climb for the second month in a row, increasing by 0.6% month over month in August, above economists’ forecasts of an increase of 0.1%. However, this uptick in retail sales was largely driven by higher gas prices, and excluding gas prices, retail sales climbed by 0.2%. However, total sales in August went up by 2.5% year-over-year, indicating a deceleration in sales.
When it comes to initial jobless claims, in the week ending September 9, these rose by 3,000 to 220,000 but were near February lows.
In the week ended Sept. 9, claims for state unemployment benefits rose by 3,000 to 220,000, the Labor Department said Thursday. This is also near February lows. On a non-seasonally adjusted basis, jobless claims went down by 16,854 to 174,499. This was the lowest since October last year. Economists had expected that new claims would climb by 4,000 to 220,000.
First published: 4:30AM EST
U.S. Futures are inching higher on Thursday morning as traders digest the slightly higher-than-expected Consumer Price Index (CPI) data released yesterday. August’s CPI rose 3.7% from the prior year, while economists had forecasted a 3.6% growth. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.25%, 0.19%, and 0.08%, respectively, at 4:25 a.m. EST, September 14. In the meantime, WTI crude oil futures are climbing higher, hovering around $89.17 as of the last check.
Notably, the wholesale inflation data represented by the Producer Price Index (PPI) is set for release today. Experts predict PPI to have grown by 0.4% in August, higher than July’s reading of 0.3% growth. Moreover, economic reports on Initial Jobless Claims for the week ending September 9 and Retail sales data are scheduled for today. The Federal Reserve’s interest rate decision due on September 20 will take into account the reading of August’s inflation print and the strength of the labor market.
On the earnings front, Adobe (ADBE) will announce its Q3FY23 results after the market closes today. Wall Street analysts expect the company’s earnings and revenues to increase year-over-year.
Meanwhile, Softbank-backed (SFTBY) Arm Holdings is ready to begin trading on the Nasdaq Stock Exchange today under the ticker symbol “ARM.” Arm’s IPO is the biggest listing so far this year, carrying a hefty valuation of $54.5 billion.
Elsewhere, European indices are trading mixed as traders anticipate the European Central Bank’s (ECB) interest rate decision today. The ECB could deliver its tenth consecutive interest rate hike, taking the prime rate to 4%.
Asia-Pacific Markets End Mixed on Thursday
Asia-Pacific indices finished mixed on Thursday following the hot CPI print from the U.S.
Japan’s Nikkei and Topix indices ended higher by 1.41% and 1.13%, respectively.
Hong Kong’s Hang Seng index and China’s Shanghai Composite index ended up by 0.23% and 0.11%, respectively, while the Shenzhen Component index finished lower by 0.57%.
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