Stocks end the week on a positive note
Last updated 4:00 PM EST
Stock indices ended the day’s trading session on a positive note, as the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 rose by 0.08%, 0.25% and 0.96%, respectively.
energy sector (xle) was a slow session, losing 2%. On the contrary, the consumer discretionary sector (XLY) was the session leader, with a gain of 2.28%.
Moreover, the 10-year US Treasury yield rose to 3.52%, up more than 1 basis point. Similarly, the two-year Treasury yield rose, hovering around 4.21%.
The Atlanta Federal Reserve has released its preliminary GDP reading now for the first quarter of 2023, which allows it to estimate real-time GDP growth. The Nowcast gets more accurate as more economic data is released during the quarter. It is currently estimated that the economy will expand by about 0.7% in the first quarter.
However, interest rates are still high and will likely continue to rise. Therefore, it will be interesting to see what the actual GDP growth will be and how it will change in the future.
Last updated: 2:30 PM EST
Stock indices appear in green as the last 90 minutes of today’s trading session approach. As of 2:30 PM ET, the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 were up 0.4%, 0.6%, and 1.3%, respectively.
On Friday, the University of Michigan released its findings on consumer inflation expectations over the next five years. Consumers now expect inflation to be 2.9%. This was better than expectations of 3% and remained flat compared to the previous month.
Taking a look at Consumer Confidence, the results came in at 64.9, which was better than the expected 64.6. This is an error jump compared to last month’s reading of 59.7. Similarly, consumer expectations were also better than expected. January saw a reading of 62.7 against expectations of 62. This was also an uptick compared to last month’s result of 59.9.
Hints of easing inflation may have positively affected consumers’ sentiment about the economy. However, it will be interesting to see if consumers remain positive as interest rates continue to rise.
Last update: 11:42 a.m. EST
Green stocks are heading towards the middle of today’s trading session. As of 11:42 a.m. EST, the Dow Jones Industrial Average (DJIA), Standard & Poor’s 500 (SPX) and NASDAQ 100 (NDX) by 0.2%, 0.3% and 0.8%, respectively.
On Friday, the National Association of Realtors released its Pending Home Sales report, which measures the month-over-month change in the number of home sales that haven’t yet closed but have been contracted to sell. This procedure excludes newly constructed homes.
During December, pending home sales rose 2.5% compared to November, after six consecutive months of decline. This was better than the expected decline of 0.9%, which follows a decline of 2.6% in the previous report. Of the last 12 reports issued, only two saw an increase.
In addition, the Pending Home Sales Index came in at 76.9, down from a reading of 116.1 for the same period last year. This equates to an approximate decrease of 33.8% year over year.
As a result, the overall trend in sales is downward, as the cost of borrowing remains high and more homes come to market. This has also caused homes to remain on the market for longer periods of time since there are fewer buyers who now have more options to choose from.
Last update: 9:51 a.m. EST
Stocks opened in the green on Friday morning, snubbing out shares of INTC Earnings outlook bleak in the fourth quarterAfter the inflation data came in line with expectations.
The personal consumption expenditures price index data, released on Friday, indicated that it increased by 0.1% on a monthly basis, unchanged from the previous month.
However, it was up 5% year-over-year but was in line with expectations. The core PCE price index rose 4.4% year-on-year, again in line with estimates.
Dow Jones Industrial Average (DJIA(gained 0.2% while the S&P 500)SPX) was up 0.11% as of 9:51 AM ET Friday. Meanwhile, the Nasdaq 100 (NDX) advanced 0.3%.
First posted: 5:49 AM EST
Stock futures fell early Friday morning ahead of the release of key economic and earnings reports.
Futures contracts on the Dow Jones Industrial Average (DJIA(down by 0.08% while the S&P 500 fell)SPX) was down 0.30% as of 5:49 AM ET Friday. Meanwhile, the Nasdaq 100 (NDXFutures fell 0.53%.
Impact on intel after-hours trading (Nasdaq: INTC), whose shares fell more than 9% after announcing weak earnings that fell short of higher and lower expectations.
On Thursday, the GDP report for the fourth quarter of 2022 gave investors reason to rejoice. The reading came in better than expected, at 2.9% y/y, raising hopes that the economy may not fall into a deep recession after all.
The fact that most of the earnings reports released so far have been positive was an additional factor to lift the mood.
The S&P 500, Dow, and Nasdaq 100 were up 1.1%, 0.61%, and 2%, respectively, at the market close on Thursday. All indicators are on their way to end the week in the green.
Friday is a busy day for economic data. Personal income and spending data for December, as well as the pending home sales number, are due on Friday. More importantly, the Personal Consumption Expenditure Price Index, and Consumer Confidence data for January will also be released. This is among the last batch of economic data before the Federal Reserve begins its FOMC meeting on January 31. The market is expecting a 25 basis point rally this time around, after weeks of reflection and analysis through comments from Fed speakers.
Meanwhile, the profits The season also continues. American Express (New York Stock Exchange: AXP), Colgate-Palmolive (New York Stock Exchange: CL), and chevron (New York Stock Exchange: CVXThree of the major names are scheduled to announce quarterly results on Friday.
Asia Pacific markets are trending positively
Elsewhere, core consumer prices in Japan rose 4.3% in January, which was higher than market estimates. As a result, the yield on 10-year Japanese government bonds increased by more than 3%. Nikkei 225 remained barely in the green territory.
The Kospi and Kosdaq indices rose 0.62% and 0.31% respectively as earnings season continued in the region.
Mainland China and Hong Kong have returned from their week-long New Year holidays. The Hang Seng Index rose 0.24% while the Hang Seng Technical Index gained 0.62% amid positive post-holiday sentiment.
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