Last Updated 8:44 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 0.53%, 0.59%, and 0.27%, respectively.
The technology sector was the session’s laggard, as it gained 0.07%. Conversely, the energy sector was the session’s leader, with a gain of 3.21%. In addition, WTI crude oil gained as it hovers around the mid-$79 per barrel range.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.75%, an increase of more than six basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.33%.
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 3.7% in the fourth quarter.
This is higher than its previous estimate of 2.7%, which can be attributed to recent releases from the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, and the National Association of Realtors.
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.
Stocks are Positive Heading into the Close
Last Updated 3:08PM EST
Stocks are in the green heading into the close. As of 3:08 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are up 0.4%, 0.4%, and 0.1%, respectively.
On Friday, the Census Bureau released its United States New Home Sales data, which came in at 640,000. For reference, forecasters were expecting a print of 600,000. However, this was significantly lower than last year’s figure of 725,000. The New Home Sales metric measures the number of single-family homes sold in the prior month (on an annualized basis).
The reduced activity from buyers can be attributable to higher interest rates, which have made mortgage payments more expensive and more difficult to qualify for.
Stocks Looking for Direction after Horrible Trading Week
Last Updated 12:08PM EST
Stock indices are mixed halfway into Friday’s trading session. As of 12:08 p.m. EST, the Dow Jones Industrial Average and the S&P 500 are both up 0.3%. In contrast, the Nasdaq 100 is down 0.2%.
Earlier today, the Census Bureau released its U.S. Core Durable Goods Orders report for the month of November, which measures the change in order value for long-lasting big-ticket items. This report excludes the impact of aircraft orders because they tend to be very volatile. Therefore, it is generally agreed upon that the core reading provides a better gauge of ordering trends.
For the month of November, Core Durable Goods Orders grew by 0.2%, which was better than the expected 0.1% on a month-over-month basis. This was slightly better than the previous month and demonstrates that demand for big-ticket items is still there as consumers continue to spend. However, when including aircraft orders, growth was -2.1%, which missed expectations of -0.6%.
Nevertheless, it is important to remember that this is a lagging indicator, meaning that the current demand has the potential to be lower as inflation and higher interest rates continue to impact people’s purchasing power.
Last Updated 10:40AM EST
Stocks have cut their earlier losses to turn green on the day. As of 10:40 a.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are up 0.3%, 0.5%, and 0.3%, respectively.
Last updated 9:39AM EST
Inflation has proved to be stickier than expected, as indicated by the core personal consumption expenditures (CPE) price index data released today.
Core PCE climbed 4.7% year-over-year in the month of November, slightly higher than forecasts of a gain of 4.6%. The PCE index was up 0.2% month-over-month in November, in line with expectations.
This has resulted in markets continuing their sell-off on Friday. The Dow Jones Industrial Average (DJIA) dropped 0.5%, while the S&P 500 (SPX) also declined 0.5%, as of 9:39 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) fell 0.8%.
First published at 7:25AM EST
Stock futures climbed in the early hours of Friday morning after a major bout of sell-offs in the market in the last session. The week was relatively quiet ahead of Christmas.
As hopes for the Santa Claus rally faded amid fears of a challenging 2023, a run of sell-offs gripped the market on Thursday, leading to losses garnered by the major indexes. At the end of Thursday’s regular trading, the S&P 500, the Dow, and the Nasdaq 100 lost 1.45%, 1.05%, and 2.49%.
All 11 sectors ended in red, with consumer discretionary and technology sectors leading the downside. Demand concerns for Micron (NASDAQ:MU) and Tesla (NASDAQ:TSLA) were yesterday’s highlight of the technology sector’s performance.
Investors are concerned that the Federal Reserve’s monetary tightening will eventually push the economy into a recession next year. Moreover, supply chain issues are not expected to dissipate entirely in 2023.
The market is on track to end the year lower than it began. In fact, stocks are poised to break a three-year winning streak and post the worst year since 2008.