Last Updated 4:05 PM EST
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Stock indices finished today’s trading session mixed. The Dow Jones Industrial Average (DJIA) gained 0.29%, while the Nasdaq 100 (NDX) fell 0.67%. On the other hand, the S&P 500 (SPX) finished flat.
The technology sector (XLK) was the session’s laggard, as it fell 0.97%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 0.96%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.43%. The Two-Year Treasury yield also increased, as it hovers around 4.03%. This brings the spread between them to -60 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 25.9% compared to yesterday’s expectations of 26.4%.
In addition, the market is now also assigning a 6% probability to a range of 5.25% to 5.5%. For reference, investors had assigned a 3.6% chance yesterday.
Last updated: 2:30PM EST
Stocks are mixed as we approach the final 90 minutes of today’s trading session. As of 2:30 p.m. EST, the Nasdaq 100 (NDX) is down by 0.2%, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up 0.3% and 0.5%, respectively.
On Tuesday, the National Federation of Independent Business (NFIB) released its Small Business Optimism Index for the month of January. As the name suggests, it is a survey that measures the level of optimism among small businesses.
In March, the index decreased by 0.8 points to a level of 90.1 but still beat estimates of 89. Nevertheless, it has remained below its 49-year average of 98 for the last 15 months. In addition, 24% of small business owners cited inflation as their single largest concern related to operations. This was down from last month’s 28%.
Still, 37% of businesses in the survey said they raised selling prices. Of the small businesses that saw lower profits, 23% attributed the decline to higher material costs, while 8% pointed to labor costs. Weaker sales made up 31% of the blame.
This data highlights that consumer spending is still strong since 69% of respondents who saw a decline in profits didn’t blame weaker sales. However, it demonstrates the impact that inflation has on profitability, as the higher revenue figures actually led to operating deleverage, meaning that earnings didn’t grow faster than sales.
Last updated: 11:23AM EST
Stock indices remain mixed so far in today’s trading session. As of 11:23 a.m. EST, the Nasdaq 100 (NDX) is down by 0.5%, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up 0.1% and 0.3%, respectively.
Last updated: 9:32AM EST
Ahead of key inflation data, stocks open mixed on Tuesday, with the Nasdaq 100 (NDX) down by 0.2% while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up 0.05% and 0.14%, respectively, at 9:40 a.m. EST, April 11.
First published: 5:49AM EST
U.S. futures are trending higher on Tuesday morning, ahead of the consumer price index (CPI) data due tomorrow. Also, big banks are slated to report their earnings this week for the quarter ending March 2023, during which the ugly banking turmoil escalated.
Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.29%, 0.22%, and 0.15%, respectively, at 5:15 a.m. EST, April 11. Most cryptocurrency stocks jumped yesterday as Bitcoin (BTC-USD) crossed the much-awaited $30,000 mark, yesterday.
The CPI and Producer price index (PPI) figures for March are due on April 12 and 13, respectively. The inflation expectation is pegged at 5.2% for March, below February’s inflation figure of 6%. However, the expectation is far from the targeted rate of 2%. Traders remain uncertain about the Federal Reserve’s interest rate decision at the upcoming FOMC meeting in May 2023. While inflation is showing signs of cooling, the tight labor market poses a challenge to the Fed’s stance.
The earnings season kicks off this week with results from big banks, namely JP Morgan Chase (NYSE:JPM), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC), alongside a couple of mid-sized regional banks. A retailer on the verge of bankruptcy, Bed Bath & Beyond (NASDAQ:BBBY), and one of the major four American Airlines, Delta Airlines (NYSE:DAL), are also reporting this week.
The March quarter was marred by the banking crisis, sparked by the failure of Silicon Valley Bank. The latest results will reveal the impact of unrealized gains/losses on the bank’s earnings and the extent of risky assets sitting on their balance sheets. Stocks will probably witness a volatile trading session in the earnings season, as other sectors too may see a slight impact from the recent banking turmoil. Notably, the tech sector remained buoyant during the recent stressful times, but layoffs and cost-cutting initiatives will mark the headlines for most companies.
Meanwhile, European indices opened today after the four-day Easter weekend. Usually, traders engage in emotional investing after long stock market breaks, pushing major European stock indices higher today.
Asia-Pacific Markets End Higher
Most Asia-Pacific indices finished the trading session in the green today, as investors looked ahead to the U.S.’ key inflation print. Korea’s Central Bank held interest rates unchanged at 3.5%, in line with expectations.
Remarkably, China’s inflation reading came in lower than expected at 0.7%. Hong Kong’s Hang Seng ended the trading session up 0.76%, while China’s Shanghai Composite ended down by 0.05% and the Shenzhen Component Index closed up 0.24%.
At the same time, Japan’s Nikkei and Topix indices ended the day in the green, up 1.05% and 0.78%, respectively.
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