Last Updated 4:05 PM EST
Stock indices finished today’s trading session with little change. The Dow Jones Industrial Average (DJIA) slipped 0.03%, while the S&P 500 and the Nasdaq 100 notched up 0.09% and 0.03%, respectively.
The healthcare sector (XLV) was the session’s laggard, as it lost 0.68%. Conversely, the industrial sector (XLI) was the session’s leader, with a gain of 0.45%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.58%, while the Two-Year Treasury yield increased to 4.22%, further inverting the yield curve.
The Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2.5% in the first quarter.
This is unchanged from the previous estimate, which can be attributed to this morning’s housing starts report from the U.S. Census Bureau.
Last Updated 12:39PM EST
Stocks are struggling to find direction following hawkish comments made by St. Louis Federal Reserve Bank President James Bullard, who thinks interest rates need to keep climbing as recent data indicates inflation remains too high.
Bullard suggested that a 50-basis point increase might be necessary, cautioning that inflation isn’t decreasing as rapidly as Wall Street anticipates. This is higher than the general consensus at the Fed’s last meeting in March, where the minutes showed that most members expect one more 25 basis point rate hike.
Bullard advised against making too many promises in light of current economic data, stressing the importance of flexibility in response to unpredictable inflation.
Despite market expectations of a recession this year, Bullard disagreed, citing the strength of the labor market. He also dismissed concerns of a banking crisis, noting that the St. Louis Fed’s financial stress index has returned to normal levels following a brief spike due to Silicon Valley Bank’s collapse.
Last Updated 11:15AM EST
Equity markets are in the red so far into today’s trading session. As of 11:15 a.m. EST, the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) are down 0.4% and 0.1%, respectively. Meanwhile, the Nasdaq 100 (NDX) is hovering around the flatline.
In March, preliminary Building Permits data missed expectations, with a print of 1.413 million compared to the forecast of 1.45 million. This was a decrease from the prior month’s report, which came in at 1.55 million, equating to a decrease of 8.8% month-over-month. It’s worth noting that building permits are on an overall decline which began in March 2022.
Last updated 9:43AM EST
Stocks opened mixed on Tuesday as investors digested another round of bank earnings. The Nasdaq 100 (NDX) and the S&P 500 (SPX) were up by 0.6% and 0.4%, respectively, while the Dow Jones Industrial Average (DJIA) was down by 0.14% at 9:43 a.m. EST, April 18.
The U.S. housing data released on Tuesday indicated that construction slowed down in March and fell by 0.8%. Housing starts dropped to 1.42 million last month at an annual pace from 1.43 million in February, while economists had forecasted housing starts to fall in March to 1.4 million on a seasonally adjusted basis.
First published 5:30AM EST
U.S. futures are trending higher on Tuesday morning as traders swiftly pass through the corporate earnings season. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.8%, 0.5%, and 0.1%, respectively, at 9:03 a.m. EST, April 18.
Technology stocks fell yesterday, dragged down by a fall in Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) shares, following the news that Samsung may switch to Microsoft’s (NASDAQ:MSFT) Bing search engine as its default browser.
On the economic front, traders are listening intently to all the speeches by Federal Reserve officials this week before the Fed enters the blackout period. Any cues on the future course of monetary policy are being processed steadily. The Federal Reserve will decide its key interest rate decision during its 2-day Federal Open Market Committee (FOMC) meeting set for May 2-3. Traders are expecting a 25 basis point rate hike in the upcoming meeting, followed by a long pause.
Economic releases today include the latest Housing Starts and Building Permits data for March, both of which are expected to report a fall compared to the prior month.
Earnings Season Takes Center Stage
With the earnings season in full effect, the markets are expected to witness a bit of volatility. Reporting today before the bell are banking giants Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC), healthcare behemoth Johnson & Johnson (NYSE:JNJ), and defense aircraft manufacturer Lockheed Martin (NYSE:LMT). After the bell, streaming giant Netflix (NASDAQ:NFLX) and air carrier United Airlines (NASDAQ:UAL) will publish their quarterly reports.
Other noteworthy earnings this week include electric vehicle maker Tesla (NASDAQ:TSLA), Morgan Stanley (NYSE:MS), Taiwan Semiconductor (NYSE:TSM), Blackstone (NYSE:BX), and Procter & Gamble (NYSE:PG).
Meanwhile, European indices are trading in the positive zone today following a slew of corporate earnings releases. Importantly, the U.K. unemployment figures rose marginally, while wages rose more than expected. Traders eagerly await the U.K. inflation data set to be released tomorrow and the resultant rate hike decision by the central bank.
Asia-Pacific Markets Trade Mixed on China’s GDP Numbers
Asia-Pacific indices finished the trading session mixed today after China reported better-than-expected GDP numbers. China’s economy grew 4.5% year-over-year while estimates were pegged at a 4% growth.
Hong Kong’s Hang Seng ended down 0.63%, while China’s Shanghai Composite ended the trading session up 0.23%.
At the same time, Japan’s Nikkei and Topix indices ended the day up by 0.51% and 0.69%, respectively.
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