Last Updated 4:02 PM EST
Stock indices finished today’s trading session in the red. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) fell 1.26%, 1.38%, and 1.93%, respectively.
The consumer discretionary sector (XLY) was the session’s laggard, as it lost 2.15%. Conversely, the consumer staples sector (XLP) was the session’s leader, with a loss of 0.72%. In addition, WTI crude oil fell as it hovers around the $78 per barrel range.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.86%, an increase of more than five basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.65%.
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 higher than its previous estimate of 2.4%, which can be attributed to this morning’s housing starts report from the U.S. Census Bureau.
Nevertheless, inflation continues to be a problem around the world. Therefore, it’ll be interesting to see what the actual GDP growth will be and how it’ll change going forward as higher rates start to impact the economy.
Last Updated: 1:11PM EST
Stocks are in the red so far into today’s trading session. As of 1:11 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 0.4%, 0.4%, and 0.6%, respectively.
Earlier today, the Federal Reserve Bank of Philadelphia released its Manufacturing Index report, which measures the general business conditions in Philadelphia.
The report surveys approximately 250 manufacturers. A level above zero indicates improving conditions, while a number below zero indicates the opposite.
For February, the report came in at -24.3 compared to the forecast of -7.4, meaning that conditions worsened more than expected on a month-over-month basis. Nevertheless, it’s worth mentioning that this is the sixth consecutive monthly decline and the eighth decline in the past nine months.
Last Updated: 10:55AM EST
Equity markets are in the red so far into today’s trading session. As of 10:55 a.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 0.7%, 0.6%, and 0.6%, respectively.
The Census Bureau released its U.S. Housing Starts report today, which measures the change in new residential buildings that began construction in the reported month on an annualized basis.
In January, housing starts came in at 1.309 million versus expectations of 1.360 million. In addition, on a month-over-month basis, housing starts fell by -4.5%. This follows a -3.4% drop in last month’s report.
Furthermore, U.S. Building Permits missed expectations, with a print of 1.339 million compared to the forecast of 1.350 million. This was a slight increase from the prior month’s report, which came in at 1.337 million, equating to an increase of 1.5% month-over-month. It’s worth noting that building permits are on an overall decline which began in March 2022.
Last Updated: 9:30AM EST
Stocks opened trading today in the red, after the PPI numbers and jobless claims disappointed investors. The Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 1.5%, 1.2%, and 0.9%, respectively, as of 9:30 a.m. EST, Thursday.
PPI rose 0.7% in the month of January and 6% over the prior year period. earlier this week, CPI had popped 5.6% year-over-year indicating a moderating disinflation.
Further, initial jobless claims dropped by 1,000 to 194,000. Continuing jobless claims came in at 1.696 million against the Street’s expectations of 1.695 million.
First Published: 5.28AM EST
Another economic indicator released yesterday was the National Association of Home Builders’ Housing Market Index for February, which jumped to 42, a second consecutive month-over-month increase.
Despite the inflationary pressures, January’s retail sales data came in at 3%, while economists had expected only a 1.7% rise. Further, excluding automobiles and gas, retail sales rose by 2.6%, above estimates for a 0.45% increase. This also means that the Fed will likely continue increasing interest rates to curb inflation.
Today, markets are awaiting the January producer price index, which is expected to rise by 0.4%, in contrast with the December decrease of 0.5%. Also, the weekly jobless claims report and January’s housing starts report will be released during the day.
Notable companies reporting earnings today include delivery company DoorDash (NYSE:DASH), toys manufacturer Hasbro (NASDAQ:HAS), online sports betting giant DraftKings (NASDAQ:DKNG), and entertainment company Paramount Global Class B (NASDAQ:PARA).
European indices are also trading in the green today on indications of cooling inflation in the U.K. As per the Office for National Statistics, the U.K. inflation figure for January came in at 10.1%, falling for the third consecutive month.
Asia-Pacific Markets Are Mostly in Green
Most of the Asia-Pacific market indices closed the trading session in the green on Thursday, following the high U.S. retail sales data.
Hong Kong’s Hang Seng closed up 0.84%, while China’s Shanghai Composite and Shenzhen Component indices fell 0.96% and 1.73%, respectively.
Also, Japan’s Nikkei and Topix ended the day up 0.71% and 0.67%, respectively. The Japanese Yen strengthened against the U.S. dollar as Japan recorded the biggest trade deficit of $26 billion for January.
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