Last Updated 4:05PM EST
Stock indices finished today’s trading session mixed. The Nasdaq 100 (NDX) and the S&P 500 (SPX) fell 0.86% and 0.47%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) saw a small gain of 0.02%.
The utilities sector (XLU) was the session’s laggard, as it lost 1.63%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 2.02%. In addition, WTI crude oil gained as it hovers around the mid-$77 per barrel range.
Furthermore, the U.S. 10-Year Treasury yield increased to 4%, an increase of more than seven basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.89%.
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 2.3% in the first quarter.
This is lower than its previous estimate of 2.8%, which can be attributed to recent releases from the U.S. Census Bureau and the Institute for Supply Management
Nevertheless, inflation continues to be a problem around the world. Therefore, it’ll be interesting to see what the actual GDP growth will be and how it’ll change going forward as higher rates start to impact the economy.
Last Updated: 2:00PM EST
Stocks remain under pressure heading into the final couple hours of today’s trading session. As of 2:00 p.m. EST, the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 0.8%, 0.5%, and 0.2%, respectively.
On Wednesday, the Census Bureau released its U.S. Construction Spending report, which measures the month-over-month change in construction spending. During January, the amount of spending fell -0.1%, which was lower than the expected growth of 0.2% predicted by forecasters.
This is on top of the -0.7% decline seen in December. It’s worth noting that construction spending has been mostly in a downward trend over the past eight months. Indeed, it has only increased twice during this timeframe.
Last Updated: 11:25AM EST
Stock indices are in the red so far in today’s trading session. As of 11:25 a.m. EST, the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 0.9%, 0.6%, and 0.2%, respectively.
Earlier today, the Institute for Supply Management released its monthly report for the ISM Manufacturing Purchasing Managers’ Index, which measures the month-over-month change in production levels. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 47.7, which was lower than the expected 48.
This indicator is slightly higher than last month’s reading of 47.4. Nevertheless, it’s in an overall decline and has been slowly downtrending ever since its peak in April 2021, when it hit a high of 64.7. Indeed, this is the fourth consecutive month where manufacturing has contracted.
Last Updated: 9:03AM EST
Indices are continuing on the downward trajectory for the second day this month. The Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 0.17%, 0.26%, and 0.13%, respectively, as of 9:03 a.m. EST, March 1.
All three indices ended February on a negative note. Meanwhile, year-to-date, DJIA is in the red, whereas SPX and NDX managed to remain in the green. A strong jobs report, a resilient consumer, and steadily growing inflation are increasing the prospects of a recession.
Markets should not be shocked if the Federal Reserve hikes the interest rate by 50 basis points in the next FOMC meeting, to be held in mid-March. The Fed needs to decide if they want to take on a more aggressive stance in ramping up interest rates since not much has been achieved to date. Even with the consistent rate hikes, inflation in the U.S. stands at 6.4%, a far cry from the targeted rate of 2%.
Notably, consumers too are being racked by the inflationary pressures. The consumer confidence figures released yesterday came in much lower than expected, at 102.9, implying a less optimistic consumer when it comes to spending behavior. Economic data on ISM manufacturing and construction will be released later during the day, today.
On the earnings front, retailers Lowe’s (NYSE:LOW) and Kohl’s (NYSE:KSS) report today. Also, we will hear about some software companies’ current health, with earnings releases from Salesforce (NYSE:CRM), Okta (NASDAQ:OKTA), and Snowflake (NYSE:SNOW).
Other noteworthy retailers releasing results this week include Costco Wholesale (NASDAQ:COST), Best Buy (NYSE:BBY), and Macy’s (NYSE:M).
Meanwhile, all major European indices are inching upwards today, on expectations of a series of economic data from different regions.
Asia-Pacific Markets Jumpstart March on a Positive Note
A majority of Asia-Pacific markets ended the trading session higher today, on the news of China’s factory output reaching its highest level since April 2012. China’s manufacturing purchasing managers’ index reached 52.6 in February, fueling enthusiasm amongst markets across the continent.
Hong Kong’s Hang Seng index ended the day higher by 4.2%. At the same time, China’s Shanghai Composite and Shenzhen Component indices closed up 1% and 0.89%, respectively.
Concurrently, Japan’s indices closed marginally higher, with the Nikkei up 0.26% and Topix ending up 0.23%.
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