Stock indices finished today’s trading session mixed. The S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) gained 0.22% and 0.5%, respectively. Meanwhile, the Nasdaq 100 (NDX) fell by 0.62%.
The consumer discretionary sector (XLY) was the session’s laggard, as it lost 1.18%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 3.93%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.75%. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.53%. This brings the spread between them to -78 basis points.
Compared to yesterday, the market is pricing in a higher chance of a higher Fed Funds rate for June 2023. In fact, the market’s expectations for a rate in the range of 5.25% to 5.5% increased to 37.5% compared to yesterday’s expectations of 34.4%.
In addition, the market is now also assigning a 48.3% probability to a range of 5% to 5.25%. For reference, investors had assigned a 50% chance yesterday.
Last Updated at 1:56PM EST
Stocks are mixed as we approach the final couple hours of today’s trading session. As of 1:56 p.m. EST, the S&P 500 and the Nasdaq 100 are down 0.1% and 0.9%, respectively. Meanwhile, the Dow Jones Industrial Average is up 0.3%.
In addition, WTI crude oil is higher today, as it hovers around the mid-$79 per barrel range. Nevertheless, the commodity’s overall downtrend has caused prices at the pump to decline when compared to last week.
Indeed, the national average for regular gas was last $3.431 per gallon, down from last week’s reading of $3.491. This is 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 $4.901 per gallon. On the other hand, Texas is the state with the lowest gas prices, at $3.018 per gallon.
It’ll be interesting to see if this downward 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: 11:00AM EST
Stock indices are mixed after the first 90 minutes of today’s trading session. As of 11:00 a.m. EST, the S&P 500 and the Nasdaq 100 are down 0.1% and 0.7%, respectively. Meanwhile, the Dow Jones Industrial Average is up 0.1%.
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 2.9%. This was in line with the forecast and remained flat compared to the previous month.
Taking a look at consumer sentiment, results came in at 66.4, which was better than the expected 65. This is a jump compared to last month’s reading of 64.9. However, consumer expectations were lower than expected. February saw a print of 62.3 versus the forecast of 62.9. This was also a decrease compared to last month’s result of 62.7.
It’s likely that hints of easing inflation have positively impacted how consumers feel about the economy. Nevertheless, it’ll be interesting to see if consumers remain positive as interest rates continue to rise.
Last updated: 9:37AM EST
Wall Street seems to be headed for a loss at the end of this week after another round of disappointing earnings.
The Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) all fell by 0.4%, 0.14%, and 0.03%, respectively, at 9:37 a.m. EST, Friday.
First published:5:00AM EST
Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are inching down 0.57%, 0.23%, and 0.07%, respectively, at 5:00 a.m. EST, Friday.
Traders were jolted by the higher-than-expected numbers from the U.S. Initial Jobless Claims released on Thursday. The initial jobless claims came in at 196,000, while the continuing jobless claims came in at 1.68 million.
Today, markets await the Preliminary Consumer Sentiment Index report from the University of Michigan. The Fed closely monitors this number to decide on the further course of its monetary policy. A higher number indicates that consumers are continuing to spend despite the inflationary pressure. In that case, the Fed will most likely continue with its interest rate hikes in the future to tame the inflation rate to the targeted range of 2%.
Moreover, comments from Fed Governor Christopher Waller and Philadelphia Fed President Patrick Harker scheduled for this afternoon will add clarity to the Fed’s rate hike trajectory.
On the earnings front, shares of ride-hailing service provider, Lyft (NASDAQ:LYFT) plunged in after-hours trading yesterday, on weak revenue guidance. Meanwhile, PayPal Holdings (NASDAQ:PYPL) rose in extended trading after posting a Q4FY22 beat.
European indices remain in the red as markets reassess the future monetary policies of worldwide economies. Notably, this morning, the U.K. released its preliminary Q4 GDP figures, which showed a flatline trend, implying that the economy escaped a recession.
Asia-Pacific Markets Follow Suit
Chinese indices ended the trading sessions in the red on Friday, despite January inflation data coming in lower than expected. Hong Kong’s Hang Seng, Mainland China’s Shanghai Composite, and Shenzhen Component indices closed down 2.01%, 0.30%, and 0.24%, respectively.
On the other hand, Japan’s indices closed in positive territory as the Yen strengthened against other currencies on news of the appointment of a new governor for the Bank of Japan.
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