Last Updated 4:05 PM EST
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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 0.22%, 0.31%, and 0.74%, respectively.
The utilities sector was the session’s laggard, as it lost 0.66%. Conversely, the consumer discretionary sector was the session’s leader, with a gain of 1.2%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.92%. Similarly, the Two-Year Treasury yield also decreased, as it hovers around 4.78%. This brings the spread between them to -86 basis points.
Compared to Friday, the market is pricing in a higher chance of a lower Fed Funds rate for June 2023. In fact, the market’s expectations for a rate in the range of 5.5% to 5.75% decreased to 18.3% compared to Friday’s expectations of 20.6%.
In addition, the market is now also assigning a 24.2% probability to a range of 5% to 5.25%. For reference, investors had assigned a 21.7% chance Friday.
Last Updated 2:00PM EST
The bulls remain in control so far as stocks are positive heading into the final couple of hours of trading. As of 2:00 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 0.6%, 0.7%, and 1.2%, respectively.
Last Updated 11:15AM EST
Stocks are in the green so far in today’s trading session. As of 11:15 a.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 0.3%, 0.5%, and 0.8%, respectively.
On Monday, the National Association of Realtors released its Pending Home Sales report, which measures the month-over-month change in the number of home sales that have yet to close but are contracted to be sold. This measure excludes homes that are newly constructed.
During January, Pending Home Sales increased by 8.1% compared to December, which was better than the expected 1% increase. This is after a 1.1% increase in the previous report (revised down from 2.5%). Of the last 12 reports issued, only three of them saw an increase.
In addition, the Pending Home Sales Index came in at 82.5, which is lower than the 109.4 reading from the same time last year. This equates to an approximate decline of 24.59% on a year-over-year basis.
Last updated: 9:50AM EST
Stocks opened in the green on Monday morning with the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) up 0.87%, 0.7%, and 0.9%, respectively, as of 9:50 a.m. EST, Monday.
The durable goods data for the month of January indicated that orders for durable goods declined month-over-month by 4.5% to $27.2 billion more than the expected fall of 4%. The U.S. Census Bureau stated that this number has been dropping in two of the past three months.
However, core durable goods orders rose better-than-expected by 0.7% in January versus expectations of a gain of 0.1%.
First published: 5:50 AM EST
U.S. futures are inching up on Monday after all major indices ended their worst week so far this year, on February 24, 2023. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are up 0.54%, 0.45%, and 0.41%, respectively, as of 5:30 a.m. EST, Monday.
A stronger-than-expected inflation reading from the personal consumption expenditures (PCE) report, released by the Bureau of Economic Analysis on Friday, sent the equity markets into a frenzy.
The core PCE index (excluding food and energy) rose by 0.6% month-over-month in January, higher than consensus forecasts of an increase of 0.5%. At the same time, the index grew 4.7% from a year ago, higher than the consensus of a 4.6% increase. This was the biggest rise in the index in the past two years and was driven by higher auto sales. Both investors and officials consider PCE a better gauge of inflation, as it includes a wider coverage of goods and services compared to the consumer price index (CPI).
Notably, retail earnings will be in focus this week as some of the largest American big box retailers, food companies, and travel stocks report their earnings. This will be a consumer-centric week, with economic data on consumer confidence and ISM manufacturing reports expected during the week.
The Federal Reserve will decide on the future course of monetary policy based on the combination of all the economic indicators. Traders are also speculating a 50 basis point rate increase in the upcoming March FOMC meeting as inflation continues to grow steadily.
Major companies reporting this week include Target Corp. (NYSE:TGT), Costco Wholesale (NASDAQ:COST), Lowe’s (NYSE:LOW), Kohl’s (NYSE:KSS), Best Buy (NYSE:BBY), and Macy’s (NYSE:M).
Meanwhile, European indices are trading higher today, recuperating from one of their worst weeks this year, which concluded last week.
Asia-Pacific Markets End in the Red
A majority of the Asia-Pacific markets ended the trading session in the red today, following one of the worst weeks of the year posted by their U.S. counterparts on February 24.
Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the day in the red, down 0.33%, 0.28%, and 0.80%, respectively.
On the other hand, Japan’s major indices ended mixed, with Nikkei closing down 0.11% and Topix ending up 0.22%.
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