Last Updated 4:05PM EST
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Stock indices finished today’s trading session in the green. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) gained 0.33%, 0.4%, and 0.71%, respectively.
The real estate sector was the session’s laggard, as it lost 0.63%. Conversely, the consumer discretionary sector was the session’s leader, with a gain of 0.95%. WTI crude oil is pushing up against the $80 per barrel level as investors expect Chinese demand for oil to increase as their economy reopens.
Meanwhile, bond yields increased, as the U.S. 10-Year Treasury yield is now hovering around 3.5%. This represents an increase of more than five basis points from the previous close.
Similar movements can be seen with the Two-Year yield, which is now at 4.23%. As a result, the spread between the 10-Year and Two-Year U.S. Treasury yields is still negative, as it currently sits at -73 basis points.
Last Updated 2:00PM EST
Stocks turn positive heading into the final two hours of today’s trading. As of 2:00 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are up 0.2%, 0.2%, and 0.3%, respectively.
Consumer Sentiment Beats Expectations
Last Updated 11:25AM EST
Stock indices are mixed after almost two hours of trading. As of 11:25 a.m. EST, the Dow Jones Industrial Average is up 0.2%, while the S&P 500 and the Nasdaq 100 are down 0.2% and 0.3%, respectively.
On Friday, the University of Michigan released its preliminary results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 3%. This number is lower than its June high of 3.3%. However, it’s slightly higher than last month’s reading of 2.9%.
In addition, consumer sentiment and consumer expectations came in better than expected. Both measures increased compared to the previous report, with the former showing a print of 64.6 compared to a forecast of 60.5 and the latter coming in at 62 versus a forecast of 59.5.
Markets Open in the Red as Major Bank Earnings Warn of Headwinds
Last updated: 9.39AM EST
Markets opened in the red on Friday morning after major bank earnings indicated that a recession loomed over the horizon.
The Dow Jones Industrial Average (DJIA) fell 0.6% while the S&P 500 (SPX) dipped 0.8%, as of 9:39 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) retreated 0.75%.
First published: 7.23AM EST
Encouraging Inflation Data Fails to Excite Stock Market Futures Traders
Stock market futures dipped early Friday morning after December’s consumer price index data (CPI), the most used measure of inflation, showed cooler price hikes. However, after the initial excitement, the futures market is likely to be focusing on the fact that the reading was in-line with expectations and not below that. Also, at 6.5%, the year-over-year reading still remains much higher than the Federal Reserve’s target inflation reading of 2%-3%.
Futures on the Dow Jones Industrial Average (DJIA) dipped 0.28% while those on the S&P 500 (SPX) inched down 0.3%, as of 7:00 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) futures retreated 0.53%.
Cooler Inflation Spurs Relief Rally
The CPI for December showed a 0.1% month-over-month decline. Also, the year-over-year price increase was lower than that of November. These encouraging data gave investors a reason to rejoice, and the market closed higher than it began.
The Dow, the S&P 500, and the Nasdaq 100 clinched gains of 0.64%, 0.34%, and 0.5%, respectively.
The Nasdaq Composite clocked a five-day winning streak. A rally this long was last seen in the tech stock-laden index in July last year. The index has gained 4.1% so far this week as investors began to regain confidence in oversold and beaten-down tech stocks.
The S&P 500 and the Dow are also likely to close the week with gains. Both indexes are up 2.3% and 1.7% respectively.
However, as the day wore out, the markets appeared to have moved over the initial joy and begun to look ahead into the next round of interest rate hikes. The Fed is expected to raise interest rates again in the FOMC meeting at the end of the month. Experts believe that the hike will be somewhere between 25-50 basis points this time. Despite the slower pace, the Fed is not likely to pivot soon and is just testing the waters slowly to try to pull off a soft-landing.
Economic Events on Friday
On Friday, investors will hear comments on the economy and possibly the Fed’s policy path from Boston Fed President Susan Collins and two other senior Fed officials.
Quarterly earnings releases of several big banks are also due on Friday, giving investors the first look at how the financial sector has performed in the final quarter of 2022. Some of the banks lined up for Friday are Bank of America (NYSE:BAC), shadow bank BlackRock (NYSE:BLK), Citigroup (NYSE:C), and more.
Interested in more economic insights? Tune in to our LIVE webinar.
