Last Updated 4:01 PM EST
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Stock indices finished today’s trading session in the green. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 1.58%, 1.96%, and 2.76%, respectively.
The energy sector (XLE) was the session’s laggard, as it gained 0.35%. Conversely, the communications sector (XLC) was the session’s leader, with a gain of 5.77%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.53%. The Two-Year Treasury yield also increased, as it hovers around 4.09%. This brings the spread between them to -56 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 9.9% compared to yesterday’s expectations of 22.5%.
In addition, the market is now also assigning a 27.3% probability to a range of 5.25% to 5.5%. For reference, investors had assigned a 13.7% chance yesterday.
Last updated: 1:55PM EST
Today’s stock market rally continues to pick up steam as we approach the final couple of hours of trading. As of 1:55 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 1.3%, 1.6%, and 2.5%, respectively.
Last updated: 11:10AM EST
Stocks are in the green so far in today’s trading session. As of 11:15 a.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 0.5%, 0.8%, and 1.6%, respectively.
On Thursday, the National Association of Realtors released its Pending Home Sales report, which measures the month-over-month change in the number of home sales that have yet to close but are contracted to be sold. This measure excludes homes that are newly constructed.
During March, Pending Home Sales decreased by -5.2% compared to February, which was worse than the expected 0.5% increase. This is after a 0.8% increase in the previous report. Of the last 12 reports issued, only four of them saw an increase.
In addition, the Pending Home Sales Index came in at 78.9, which is lower than the 103.3 reading from the same time last year. This equates to an approximate decline of 23.6% on a year-over-year basis.
Last updated: 9:34AM EST
The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up 0.88%, 0.6%, and 0.4%, respectively, at 9:34 a.m. EST, April 27.
The latest economic data indicated that the U.S. economy grew at a slower-than-expected pace of 1.1% in Q1, while economists were expecting the economy to expand at a rate of 2%. The report also indicated prices increasing sharply by 4% versus economists’ estimates of 3.7%.
Meanwhile, the initial jobless claims data indicated that jobless claims dropped by 16,000 to 230,000 in the week ended April 22, almost wiping away the last two weekly gains. Economists had estimated new claims to rise by 4,000 to 249,000. The number of people collecting jobless benefits declined by 3,000 to 1.86 million in the week ending April 22.
First published: 5:48AM EST
U.S. futures were trending higher on Thursday morning as traders rejoiced over the solid earnings beats from tech giants. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up 0.92%, 0.48%, and 0.23%, respectively, at 4:00 a.m. EST, April 27.
Meta Platforms (NASDAQ:META) took investors and shareholders by surprise with solid earnings and revenue beats while also reporting a decent uptick in active users. Similarly, e-commerce portal eBay (NASDAQ:EBAY) reported better-than-expected Q1FY23 results, led by efforts to revive sales. At the same time, TV streaming platform Roku (NASDAQ:ROKU) posted strong Q1 results, beating both top and bottom lines while also providing a solid outlook for Q2FY23.
Until now, all FAANG stocks have posted solid earnings beats, and traders are hopeful of a blockbuster performance from the last one, e-commerce behemoth Amazon (NASDAQ:AMZN). Amazon reports today after the bell.
Stock market sentiment is split between the continuous earnings beats from technology companies and the health of the banking sector, which remains a concern. Markets will most likely continue to remain choppy during the current earnings season as traders assess the aftermath of the recent banking crisis. Regional bank First Republic (NYSE:FRC) reported a big earnings beat on Monday, but traders have remained skeptical of the bank’s deposit flight and financial stability. FRC stock has lost over 60% since its earnings.
Importantly, the Fed’s next rate hike decision will drive the direction of the market. The Fed’s 2-day FOMC meeting is set for May 2-3 next week. A 25 basis point hike will send initial jitters to the markets temporarily but will be followed by a relief rally. On the other hand, if the Fed decides to pause rate hikes next week, the markets will rally instantaneously.
On the economic front, the U.S. GDP numbers for the first quarter and the weekly initial jobless claims are due today. Meanwhile, the Personal Consumption Expenditures (PCE) Price Index numbers will be released tomorrow. Fed officials consider the PCE to be a better gauge of inflation.
Elsewhere, European indices are trading mixed today following a slew of mixed corporate earnings releases.
Asia-Pacific Markets Mostly in the Green
Most Asia-Pacific indices finished the trading session in the green today, as traders closely watched the Bank of Japan’s monetary policy meeting today under the leadership of new Governor Kazuo Ueda.
Hong Kong’s Hang Seng and China’s Shanghai Composite and Shenzhen Component indices ended the trading session up by 0.42%, 0.67%, and 0.05%, respectively.
At the same time, Japan’s Nikkei and Topix indices ended the day up by 0.15% and 0.43%, respectively.
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