Last Updated 4:05 PM EST
Stock indices finished today’s trading session in the red, although well off their lows. This can be attributed to Tesla’s (NASDAQ:TSLA) and Apple’s (NASDAQ:AAPL) poor performance today. As a result, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 fell by 0.03%, 0.4%, and 0.7%, respectively.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.77%, while the Two-Year Treasury yield also fell, as it hovers around 4.39%.
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 3.9% in the fourth quarter.
This is higher than its previous estimate of 3.7%, which can be attributed to recent releases from the U.S. Census Bureau, which includes this morning’s construction spending report.
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 2:57PM EST
Tesla has been weighing down indices today as its shares plunged on negative news. Nevertheless, stocks have rallied from their lows as we approach the final hour of Tuesday’s trading session. As of 2:57 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 0.4%, 0.6%, and 0.8%, respectively.
Last Updated 12:34PM EST
The downward momentum continues halfway into today’s trading session. As of 12:34 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 0.4%, 0.7%, and 1.1%, respectively.
Last Updated 10:20AM EST
Stock indices turn red after a hopeful start to the new year. As of 10:20 a.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 0.4%, 0.5%, and 0.7%, respectively.
On Tuesday, Markit released its report for the U.S. Manufacturing Purchasing Managers Index, which measures the month-over-month change in manufacturing activity. A number over 50 represents an expansion, whereas anything below 50 represents a contraction. The report came in at 46.2, in line with expectations.
It’s worth noting that this indicator has been down-trending ever since its peak in August 2021, when it hit a high of 63.4. This can be attributed to weak demand due to growing uncertainties.
Indeed, the Federal Reserve is trying to destroy demand in order to cool down inflation. Although it is attempting a soft landing, it’s more likely that it will tighten too far. As a result, the manufacturing sector is becoming a casualty.
Last updated: 9:30AM EST
Stock markets opened in the green on the first trading day of 2023 as investors seemed to be optimistic about the year.
First published: 7:13AM EST
Stock futures rose early on Tuesday as investors prepare for the first trading session of 2023 with fresh optimism.
Moving on from a brutal year for stocks, traders are now looking forward to a few key economic updates this week. Minutes from the Federal Reserve’s December meeting are expected to be out on Wednesday, which might give a clearer picture of the central bank’s future policy path.
The S&P Global manufacturing PMI (Purchasing Managers’ Index) and construction spending data are set to be released on Tuesday.
Another important piece of data this week is the Job Openings and Labor Turnover Survey (JOLTS) due on Wednesday.
However, the most awaited data this week is December’s employment data, which even the Fed will keep a close watch on to prepare for its meeting on February 1. The job market is expected to have added around 200,000 jobs and experienced 5% wage inflation in December, while unemployment is likely to have remained unchanged. This indicates a still tight job market.
Additionally, alarm bells went off after 67% of the economists at 23 large financial institutions predicted a recession in 2023 while two economists expect an economic contraction in 2024. These predictions matter because these banks directly work with the Federal Reserve.
With depleting pandemic household savings, a declining housing market, and banks with tighter lending regulations, a quickly approaching recession is becoming increasingly apparent.
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