Last Updated 4:05PM EST
Stock indices finished today’s trading session in the red. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) fell 0.73%, 0.88%, and 0.91%, respectively.
The communications sector was the session’s laggard, as it lost 2.2%. Conversely, the consumer discretionary sector was the session’s leader, with a loss of 0.19%. WTI crude oil fell today as it currently hovers in the mid-$77 per barrel mark.
Meanwhile, bond yields increased, as the U.S. 10-Year Treasury yield is now hovering around 3.67%. 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 4.49%. As a result, the spread between the 10-Year and Two-Year U.S. Treasury yields is still negative, as it currently sits at -82 basis points.
Last updated: 1:15PM EST
Stocks give up their early gains and turn negative in today’s trading session. As of 1:15 p.m. EST, The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.05%, 0.2%, and 0.2%, respectively.
Last updated: 11:40AM EST
The initial optimism seen at the open is fading as the bulls are making a retreat. As of 11:40 a.m. EST, The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.35%, 0.21%, and 0.23%, respectively.
Last updated: 9:30AM EST
Stocks opened on Thursday with trading action in the green despite the fact that jobless claims came in higher than expected to 196,000, up by 13,000 versus consensus expectations of 192,000. Continuing jobless claims came in at 1.68 million higher than consensus estimates of 1.66 million versus prior claims of 1.65 million.
The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are all up at 1.4%, 0.9%, and 0.8%, respectively, as of 9:30 a.m. EST, Thursday.
First published: 5:50AM EST
Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are rising higher at 1.02%, 0.73%, and 0.63%, respectively, as of 4:50 a.m. EST, Thursday. Importantly, markets await the numbers from the U.S. Initial Jobless Claims, which will be released today, at 8:30 a.m. EST.
Markets reacted positively to the blowout results from entertainment giant Disney (NYSE:DIS), which beat analysts’ expectations and announced job cuts and cost savings. On the other hand, buy now pay later (BNPL) giant Affirm Holdings (NASDAQ:AFRM) plunged on missing expectations and announcing a 19% workforce reduction.
Further, Yum Brands (NYSE:YUM), owner of food chains including KFC and Taco Bell reported better-than-expected results, implying that consumers are not fully affected by the inflation yet and will continue to spend. Consumers are probably spending from the stimulus packages they received in prior years, and until those run dry, they might continue spending. This sentiment will become clearer on February 10, when the University of Michigan will report the Preliminary Consumer Sentiment Index.
Markets remain choppy as investor sentiment swings between good earnings reports and hawkish comments from the Federal Reserve. Yesterday, John Williams, the President of the New York Federal Reserve, also indicated that rates will continue increasing until inflation is tamed at the 2% target.
Going by the economic indicators, not much has changed month over month. However, traders are celebrating even the slightest optimism, either from the company’s earnings or from the economy.
It is worth noting that the Fed will most likely continue with its hawkish stance as long as wage inflation remains high, especially in the services sector. Job cuts in the financial services sector are beginning to pressurize the labor market, but more needs to come from other sectors for the Fed to change its stance.
Meanwhile, notable companies reporting earnings today include PepsiCo (NYSE:PEP), Hilton (NYSE:HLT), and Kellogg’s (NYSE:K). Companies reporting tomorrow include PayPal Holdings (NASDAQ:PYPL), Lyft (NASDAQ:LYFT), and AbbVie (ABBV).
European indices, too, stayed in the green in midday trading today as traders continued to weigh the positive macroeconomic data.
Asia-Pacific Markets Ends Mostly in the Green
A majority of indices in the Asia-Pacific markets closed in positive territory on Thursday. Hong Kong’s Hang Seng, Mainland China’s Shanghai Composite, and Shenzhen Component indices closed up 1.60%, 1.18%, and 1.67%, respectively.
At the same time, Japan’s Nikkei 225 ended down 0.08% and Topix closed the day up 0.05%.
Meanwhile, India’s Nifty 50 index closed in the green, up 0.12%, after witnessing a volatile day, dragged by Adani Group stocks.
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