Last Updated 4:15PM EST
Stock indices finished today’s choppy trading session with mixed results. Bank giant Goldman Sachs (GS) weighed down the Dow Jones (DJIA) and S&P 500 (SPX) after its earnings report failed to impress Wall Street. Indeed, both indices fell 1.14% and 0.2%, respectively. On the other hand, the Nasdaq 100 (NDX) gained 0.14%.
The materials sector was the session’s laggard, as it lost 1.03%. Conversely, the technology sector was the session’s leader, with a gain of 0.46%. WTI crude oil is over 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 3.55%. This represents an increase of more than one basis point from the previous close.
Similar movements can be seen with the Three-Month yield, which is now at 4.63%. As a result, the spread between the 10-Year and Three Month U.S. Treasury yields is still negative, as it currently sits at -108 basis points.
Last Updated at 11:21AM EST
Stocks are in the red after briefly turning green earlier in the trading session. As of 11:21 a.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 1.1%, 0.3%, and 0.4%, respectively.
In addition, WTI crude oil is also up today as it hovers above $80 per barrel. Although the commodity is well off its 52-week high, its recent uptrend has led to prices at the pump gaining upward momentum across the country.
Indeed, the national average for regular gas was last $3.327 per gallon, up from last week’s reading of $3.27. Still, this remains 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 $4.987 per gallon. On the other hand, Mississipi is the state with the lowest gas prices, at $2.93 per gallon.
It’ll be interesting to see if this upward trend will continue as the Federal Reserve looks to raise interest rates to fight inflation while oil producers lower production to maintain the price.
Markets Open in the Red as Earnings Season Rolls On
Last updated: 9:41AM EST
First published:7:20AM EST
Stock futures dipped Tuesday morning as investors awaited more corporate earnings and economic updates this holiday-shortened week.
Futures on the Dow Jones Industrial Average (DJIA) dipped 0.19% while those on the S&P 500 (SPX) inched down 0.21%, as of 7:00 a.m. EST, Tuesday. Meanwhile, the Nasdaq 100 (NDX) futures retreated 0.31%.
Markets were closed on Monday in observance of Martin Luther King Jr. Day. The stock market is reopening today after clinching gains for the second straight week of the new year. On Friday, the S&P 500, the Dow, and the Nasdaq 100 gained 0.4%, 0.33%, and 0.71%, respectively.
The Year So Far
Encouragingly, December’s inflation data, the Consumer Price Index, also showed an improved inflation reading, indicating that the Federal Reserve’s policy is showing desired results. This has also played a part in sparking hopes for lower interest rate hikes.
However, last week, research firm Stifel expressed concerns about a re-tightening of the monetary policy in the latter half of 2023, leading to a recession at some point in that period. This is expected by the firm to occur after a remarkably encouraging 1H.
Also, at 6.5% inflation as of December 2022, inflation is still much above the Fed’s target rate of 3%. Additionally, the unemployment rate, which fell to 3.4% in December, is a concern for the central bank, which expects the number to rise to at least 5% to slow the labor market desirably. These numbers are expected to be taken into account in the next round of interest rate hikes expected on February 1.
Earnings Season Kicks Off
This week will see investors parsing through corporate earnings after a few banking stocks that reported on Friday indicated concerns about a recession this year.
Other Economic Data and Updates This Week
Apart from earnings, investors also are preparing for updates coming from the World Economic Forum’s meeting in Davos this week. The conference is expected to touch on various discussions on global economic improvements (or lack thereof), giving investors clues on what to expect this year in a global sense.
Also, the Producer Price Index (PPI) for December, which measures the level of price rise in wholesale goods, is expected to be out this week, along with the month’s retail sales data.
Moreover, Fed presidents from several regions are expected to speak at different events throughout the week. In anticipation of their comments, U.S. Treasury yields were mixed on Tuesday, as traders looked forward to hints about the central bank’s policy plans and key economic data this week.
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