Last Updated 4:05 PM EST
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Stock indices finished today’s trading session in the green. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 gained 2.12%, 2.28%, and 2.79%, respectively.
The energy sector was the session’s laggard, as it gained 0.91%. Conversely, the materials sector was the session’s leader, with a gain of 3.42%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.56%. Similarly, the Two-Year Treasury yield also decreased, as it hovers around 4.26%. This brings the spread between them to -70 basis points.
Compared to yesterday, the market is pricing in a higher chance of a lower Fed Funds rate for June 2023. In fact, the market’s expectations for a rate in the range of 5.25% to 5.5% decreased to 9% compared to yesterday’s expectations of 17.3%.
In addition, the market is now also assigning a 45.2% probability to a range of 4.75% to 5%. For reference, investors had assigned a 33.6% chance yesterday.
Stock Rally Accelerates; Nasdaq Up 3%
Last updated: 3:00PM EST
Stock indices continue to rally heading into the final hour of today’s trading session. As of 3:00 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are up 2.3%, 2.5%, and 3%, respectively.
Earlier today, the U.S. Census Bureau released its monthly report for U.S. Factory Orders, which measures the month-over-month change in new orders placed with manufacturers. In November, new orders decreased by -1.8%, worse than the expected 0.8%.
It’s worth noting that this indicator is based on data from November, making it a lagging indicator. Indeed, the Institute for Supply Management released its Manufacturing New Orders Index earlier this week for December, which showed a decline. Therefore, the U.S. Census Bureau’s Factory Orders report next month might also come in negative.
Stocks Rise as Non-Manufacturing PMI Craters
Last updated: 12:00PM EST
Stock indices continue to rally halfway into today’s trading session. As of 12:00 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are up 1.8%, 1.9%, and 2%, respectively.
On Friday, the Institute for Supply Management released its monthly report for the ISM Non-Manufacturing Purchasing Managers’ Index, which measures the overall economic condition of the non-manufacturing sector.
A number over 50 represents an expansion, whereas anything below 50 signals a contraction. The report came in at 49.6, significantly worse than the expected 55 and lower than last month’s reading of 56.5.
It’s worth noting that this indicator has been in an overall downtrend since peaking in December 2021, when it hit a high of 69.1. This is the first time non-manufacturing PMI has contracted since June 2020.
In addition, the ISM Non-Manufacturing Employment report came in at 49.8, slightly lower than last month’s reading of 51.5. This indicates that employment saw a contraction following a slight boost.
Dow, S&P 500 Remain Green after December Jobs Report
Last updated: 10:01AM EST
The major indices stay in the green side, after the December jobs report indicated that the unemployment rate edged down to 3.5% in December versus expectations of 3.7%.
Non-farm employment increased by 223,000 in December, higher than estimates of 200,000. November non-farm employment had surged by 256,000.
Following the report, the Dow Jones Industrial Average (DJIA) rose 0.8% while the S&P 500 (SPX) rose 0.9%, as of 10.01 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) advanced 0.5%.
First published: 6:51AM EST
Stock futures were mixed on Friday morning as investors anxiously awaited December’s employment data that will be released on Friday.
Futures on the Dow Jones Industrial Average (DJIA) rose 0.14% while those on the S&P 500 (SPX) inched up 0.07%, as of 6.35 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) futures retreated 0.29%.
December’s employment data, which will include the number of U.S. non-farm payrolls added, unemployment rate, and wage increases if any, for the month, will be considered as key information by the Federal Reserve to forge its next step.
A Dow Jones survey of economists’ opinions revealed that the consensus expects 200,000 jobs to have been added in December. This indicates that economists are looking forward to a month-over-month slowdown in the labor market. If the number comes above expectations and exceeds November’s reading, the market is likely to experience a sell-off. This is because any indication of a resilient labor market could incite more aggressive interest rate hikes by the Federal Reserve.
This is the reason why investors were not happy with the ADP private payrolls report released on Thursday. According to the report, 235,000 jobs were added to the private sector in December, indicating that the private sector had been hot for workers in December.
Following the report, the Dow fell 1.02%, the S&P 500 dipped 1.16%, and the Nasdaq 100 shed 1.59% by market close Thursday. Experts are not expecting a bull market to begin anytime soon, despite short ebbs and flow here and there.
The first trading week of 2023 is on track to end in the red, with the Dow, the S&P, and Nasdaq Composite down 0.66%, 0.82%, and 1.54%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.
