Last Updated at 4:05PM EST
Stock indices made quite a comeback today off their intraday lows. The S&P 500 (SPX) and the Nasdaq 100 (NDX) ended up only falling 0.02% and 0.27%, respectively. On the other hand, the Dow Jones Industrial Average (DJIA) finished up 0.03%.
Meanwhile, bond yields decreased, as the Two-Year yield is now at 4.13%. This represents a decrease of more than eight basis points from the previous close.
Conversely, the U.S. 10-Year Treasury yield remained flat and is now hovering around 3.45%. As a result, the spread between the 10-Year and Two-Year U.S. Treasury yields is still negative, as it currently sits at -68 basis points.
Last Updated at 2:30PM EST
Stocks are in the red heading into the final 90 minutes of trading but have rallied well off their intraday lows. As of 2:30 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 0.2%, 0.3%, and 0.5%, respectively.
In addition, WTI crude oil is flat today but continues to hover above $80 per barrel. Although the commodity is well off its yearly highs, its recent uptrend has led to prices at the pump gaining upward momentum across the country.
Indeed, the national average for regular gas was last $3.481 per gallon, up from last week’s reading of $3.359. Still, this remains significantly lower than the all-time high of $5.016 per gallon on June 14, 2022.
The highest prices can be found in Hawaii, where prices are substantially higher than the national average, at $4.941 per gallon. On the other hand, Texas is the state with the lowest gas prices, at $3.112 per gallon.
It’ll be interesting to see if this upward trend will continue going forward as the Federal Reserve looks to raise interest rates to fight inflation while oil producers lower production in order to maintain the price.
Last Updated 11:20AM EST
Stocks are in the red in the late stages of the morning session. As of 11:20 a.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 fell 1%, 1.1%, and 1.5%, respectively.
On Wednesday, the Mortgage Bankers Association released its weekly report for the U.S. 30-Year mortgage rate. The mortgage rate decreased to 6.2% compared to last week’s reading of 6.23%.
Due to the lower rates, the number of mortgage applications increased week-over-week by 7%, following last week’s increase of 27.9%. This indicates that sentiment in the real estate market might be improving.
Nevertheless, mortgage application volume is down substantially on a year-over-year basis, with the Mortgage Market Index at 255.3 compared to 551.7 on January 26, 2022.
Last updated: 9:45AM EST
Stocks opened lower on Wednesday as MSFT’s gloomy fiscal Q3 outlook weighed on markets.
First published:6:26AM EST
Stock futures dipped early Wednesday morning as investors digested the grim outlooks from corporates during this earnings season.
Shares of Microsoft (NASDAQ:MSFT) rallied initially on solid quarterly results. However, the stock pared the initial gains and lost 2.4% in premarket trading after disappointing investors with a weak outlook.
As the fear of a recession grips the market harder, investors anticipate corporate outlooks to provide more clarity on the coming months. Market data research firm Refinitiv found that 65% of the S&P 500 companies that reported earnings so far have surpassed expectations.
On Tuesday, the major indexes broke their three-day winning streak. The S&P 500 and Nasdaq 100 lost 0.07% and 0.22% respectively, at the end of the regular trading session. Meanwhile, the Dow gained 0.31%.
The Federal Reserve is gearing up for the next FOMC meeting that is scheduled to be held on January 31 through February 1. The central bank is expected to raise interest rates by 25 basis points.
It should be remembered that the labor market is still strong and although it shows initial signs of slowing, the Fed expects to make more pain felt in the job market. Unless the wage inflation is curbed, the Fed is unlikely to pivot, and a bull market is not expected to begin until that happens. Any rally we see before that will probably be short-lived relief rallies.
Asia-Pacific Markets Display Mixed Performances
Elsewhere, as the week-long Lunar New Year holidays keep China and Hong Kong markets shut, the S&P/ASX 200 dipped 0.3% as Australia digested its highest inflation (7.8% in 4Q22) in more than three decades. Wall Street’s struggle for direction also rubbed off on many Asia-Pacific regions.
Meanwhile, in Japan, the Nikkei 225 rose 0.35% and the Topix gained 0.39%.