Last Updated 4:05 PM EST
Stock indices finished today’s trading session in the green. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 gained 0.54%, 0.75%, and 1.22%, respectively.
The energy sector was the session’s laggard, as it lost 0.47%. Conversely, the technology sector was the session’s leader, with a gain of 1.63%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.49%, an increase of more than seven basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.32%. This brings the spread between them to -83 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 5% to 5.25% increased to 36.8% compared to yesterday’s expectations of 33.6%.
In addition, the market is now also assigning a 13.6% probability to a range of 5.25% to 5.5%. For reference, investors had assigned an 11.7% chance yesterday.
Stocks are Positive Heading into the Close
Last Updated at 3:00PM EST
Stocks are in the green 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 0.2%, 0.5%, and 1%, respectively.
WTI crude oil is lower today, as it hovers around the mid-$71 per barrel range. The commodity’s overall downtrend has caused prices at the pump to decline when compared to last week.
Indeed, the national average for regular gas was last $3.329 per gallon, down from yesterday’s reading of $3.355. This is significantly lower than the all-time high of $5.016 per gallon on June 14.
The highest prices can be found in Hawaii, where prices are substantially higher than the national average, at $5.173 per gallon. On the other hand, Texas is the state with the lowest gas prices, at $2.761 per gallon.
It’ll be interesting to see if this downward trend will continue going forward as the Federal Reserve looks to raise interest rates to fight inflation while oil producers lower production in order to maintain the price.
Stocks are Higher Halfway into Trading Session
Last Updated 12:30PM EST
Stock indices are in the green halfway into today’s trading session. As of 12:30 a.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are up 0.5%, 0.6%, and 0.9%, respectively.
After seeing car prices surge over the past two years, it appears that the trend may begin to reverse, according to auto dealers. Indeed, a survey from Cox Automotive indicates that most auto dealers see weakness in the fourth quarter.
Cox Automotive Dealer Sentiment Index, which surveyed 1,034 dealers in Q4, came in at 43. For reference, a number below 50 indicates that more dealers have a negative view of the current market than a positive one. The current print is lower than the pre-pandemic average of 48 and significantly lower than the Q2 2021 peak of 67.
This can be attributed to rising inventories, higher borrowing costs, and a slowing economy, which make purchasing a new vehicle more burdensome for consumers while also giving them more options to choose from. Thus, consumers are less likely to be in a rush to buy new automobiles.
Last updated 9:42AM EST
Markets opened higher on Thursday as the S&P 500 index looked at breaking a five-day losing streak.
The S&P 500 (SPX) and the Nasdaq 100 (NDX) were up 0.3% and 0.09%, respectively, as of 9.42 a.m. EST, Thursday. Meanwhile, the Dow Jones Industrial Average (DJIA) climbed by 0.5%.
Last updated 9:00AM EST
U.S. stock futures moved slightly higher on Thursday as investors continue to evaluate the possibility of a recession ahead.
The jobless claims data released today indicated that in the week ending December 3, seasonally adjusted initial claims increased by 4,000 from the previous week to 230,000.
The continuing jobless claims for the week ending November 26 was 1.67 million versus an estimate of 1.6 million and up by 62,000 from the prior week.
Futures tied to the S&P 500 (SPX) and the Nasdaq 100 (NDX) were up 0.6% each as of 9.00 a.m. EST, Thursday. Meanwhile, futures on the Dow Jones Industrial Average (DJIA) climbed by 0.4%.
Last updated 6:02AM EST
U.S. stock futures wobbled early Thursday as investors continue to worry about a looming recession and await more data on the direction of the economy.
Futures tied to the S&P 500 (SPX) and the Nasdaq 100 (NDX) were up 0.06% and 0.18%, respectively, as of 6.00 a.m. EST, Thursday. Meanwhile, futures on the Dow Jones Industrial Average (DJIA) were down 0.04%.
On Wednesday, the S&P 500 and Nasdaq 100 fell 0.19% and 0.45%, respectively, while the Dow Jones Industrial Average was flat.
Wednesday was the fifth consecutive day of losses for the S&P 500, reflecting mounting concerns over a potential economic downturn. The CEOs of major U.S. companies have cautioned investors about slowing demand and consumer spending as inflation remains stubbornly high.
Key Economic Releases to Provide More Clarity
All eyes are on the Federal Reserve’s final rate-setting meeting this year. The Fed is expected to announce a 50 basis points rise following four consecutive hikes of 75 basis points. Ahead of Fed’s meeting next week, investors will be keenly looking at economic releases, including Friday’s producer price index and next week’s consumer price index.
Meanwhile, the Department of Labor will announce weekly jobless claims (for the week ended December 3, 2022) and continuing jobless claims (for the week ended November 26) before the market opens on Thursday. Experts estimate initial jobless claims to come in at 230,000, up from the prior week’s figure of 225,000. The Fed and traders closely watch the jobless claims data to gauge the impact of interest rate hikes on the economy.
Coming to oil, WTI Crude trended slightly higher on early Thursday on hopes that the easing of restrictions in China will revive demand. Also, as per Reuters, oil prices gained on Thursday morning in reaction to the news that some tankers carrying Russian oil have been delayed after a G7 price cap became effective. WTI Crude closed below $75 on Wednesday on worries about an economic slowdown.
