Last Updated 4:02 PM EST
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Stock indices finished today’s trading session with little change. Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.02%, 0.01, and 0.23%, respectively.
The communications sector (XLC) was the session’s laggard, as it fell 0.75%. Conversely, the utilities sector (XLU) was the session’s leader, with a gain of 2.19%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.6%. The Two-Year Treasury yield also increased, as it hovers around 4.27%. This brings the spread between them to -67 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 4.75% to 5% decreased to 10.7% compared to yesterday’s expectations of 13%.
In addition, the market is now also assigning a 29.6% probability to a range of 5.25% to 5.5%. For reference, investors had assigned a 23.3% chance yesterday.
Last updated: 1:57PM EST
Stocks are mixed so far in today’s trading session. As of 1:57 p.m. EST, the Dow Jones Industrial Average (DJIA) is down 0.2%. Meanwhile, the Nasdaq 100 (NDX) and the S&P 500 (SPX) are up roughly 0.1% each.
In addition, WTI crude oil is down today as it hovers below $80 per barrel. Although the commodity is well off its yearly highs, 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 $3.684 per gallon, up from last week’s reading of $3.621. 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 California, where prices are substantially higher than the national average, at $4.912 per gallon. On the other hand, Mississippi is the state with the lowest gas prices, at $3.168 per gallon.
Last updated: 11:15AM EST
Stocks remain under pressure so far in today’s trading session. As of 11:15 a.m. EST, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were all down roughly 0.3%.
Last updated: 9:34AM EST
Stocks opened in the red on Wednesday as investors weighed the latest round of earnings. Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were all down by 0.6%, 0.4%, and 0.26%, respectively, at 9:34 a.m. EST, April 19.
Even as home prices seem to be easing, affordability continues to be a major hurdle for first-time home buyers as mortgage rates continue to rise. In the week ending April 14, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) rose to 6.43% from 6.30%.
As a result, according to the data from the Mortgage Bankers Association’s seasonally adjusted index, mortgage applications to purchase a home fell by 10% in the week ending April 14 from the prior week.
First published: 5:40AM EST
U.S. futures are trending down on Wednesday morning on a mixed bag of corporate earnings from some of the big players in each sector. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.79%, 0.53%, and 0.44%, respectively, at 5:40 a.m. EST, April 19.
Markets will likely remain choppy this week as traders engage in emotional investing. A slew of earnings beats and misses is driving trader sentiment and stock price volatility. Surprisingly, so far, bank earnings are not appearing as bad as investors had expected due to the recent banking turmoil.
Streaming platform Netflix (NASDAQ:NFLX) slipped on a mixed bag of earnings. Similarly, shares of financial juggernaut Goldman Sachs (NYSE:GS) are down as its Q1 earnings beat but revenue missed estimates. Meanwhile, banking giant Bank of America (NYSE:BAC) beat both the top and bottom line expectations, pushing the shares higher. Healthcare behemoth Johnson & Johnson (NYSE:JNJ) also beat Q1 expectations and raised its outlook for FY23.
Reporting today are electric vehicle maker Tesla (NASDAQ:TSLA), financial giant Morgan Stanley (NYSE:MS), regional bank KeyCorp (NYSE:KEY), which was one of the battered names during the recent banking crisis, and telecom giant AT&T (NYSE:T).
On the economic front, speeches by Federal Reserve officials continue to drive market sentiment. A 50 basis point hike suggestion by St. Louis Federal Reserve Bank President James Bullard yesterday triggered a negative reaction in the markets. Next week, the Fed will enter the blackout period, and investors are intently listening to any cues on the future course of monetary policy in the Fed’s speeches. Traders are expecting a 25 basis point rate hike in the upcoming meeting, followed by a long pause.
Meanwhile, European indices are trading in negative territory today, following the higher-than-expected U.K. inflation print and confusing speeches from U.S. Fed officials. The U.K.’s consumer price index stood at 10.1% in March, higher than the 9.8% expectation of economists polled by Reuters.
Asia-Pacific Markets Remain Mixed on Confusing Fed Signals
Asia-Pacific indices finished the trading session mixed today following confusing signals on rate hike decisions by U.S. Fed officials. On the one hand, James Bullard suggested more aggressive rate hikes to curb inflation. On the other hand, Atlanta Fed President Raphael Bostic said in a CNBC interview that he expects one more 25-basis-point rate hike in May, followed by a pause.
Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component Indices ended the trading session down 1.37%, 0.68%, and 0.71%, respectively.
At the same time, Japan’s Nikkei and Topix indices ended the day in the red, down by 0.18% and 0.02%, respectively.
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