Last Updated 4:05 PM EST
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Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.21%, 1.25%, and 0.97%, respectively.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.87%, a drop of five basis points. Similarly, the Two-Year Treasury yield also fell, as it hovers around 4.21%.
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 4.2% in the first quarter.
This is higher than its previous estimate of 3%, which can be attributed to this morning’s construction spending release and the Manufacturing ISM Report.
Last Updated: 10:15AM EST
Stocks are in the green so far in today’s trading session. Earlier today, the Institute for Supply Management released its monthly report for the ISM Manufacturing Purchasing Managers’ Index, which measures the month-over-month change in production levels. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 49.1, which was higher than the expected 47.2.
Although this indicator is higher compared to last month’s reading of 47.1, it’s still in an overall decline and has been slowly downtrending ever since its peak in April 2021, when it hit a high of 64.7. Indeed, this is the 15th consecutive month where manufacturing has contracted.
Furthermore, the Department of Labor released its Initial Jobless Claims report, which came in worse than expected. In the past week, 222,000 people filed for unemployment insurance for the first time. Expectations were for 213,000 individuals. When using the four-week average, initial jobless claims were 207,750, up from last week’s reading of 202,500.
In addition, Continuing Jobless Claims, which measures the number of unemployed people who qualify for unemployment insurance, came in at 1.898 million. This was above the forecast of 1.84 million and higher than last week’s print of 1.828 million.
First Published: 3:30AM EST
U.S. futures edged higher early Thursday following indications from the Federal Reserve that interest rates may drop as inflation eases. The Federal Reserve kept the benchmark interest rate in the range of 5.25% to 5.50%, suggesting that interest rates may have peaked and could trend downward in the coming months. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up about 0.42%, 0.22%, and 0.04%, respectively, at 3:05 a.m. EST, February 1.
In after-hours action, medical devices company Align Technology (NASDAQ:ALGN) saw its shares jump by 12% after it reported higher-than-expected Q4 earnings. Meanwhile, shares of the railroad operator Norfolk Southern (NYSE:NSC) jumped 5.4% as big investors built stakes in the company.
Turning attention to significant earnings announcements, technology giants Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Meta Platforms (NASDAQ:META) will announce their quarterly financial numbers. Analysts’ consensus ratings reflect that Wall Street favors AMZN and META over AAPL ahead of their upcoming earnings.
Meanwhile, oil prices were trending higher at the time of writing on expectations of rate cuts in the future. The WTI crude oil futures were up, hovering near $76.01 per barrel as of the last check.
Elsewhere, European indices are expected to open lower as investors wait for the latest monetary policy decision from the Bank of England and eurozone inflation data for January.
Asia-Pacific Markets Remained Mixed Today
The Asia-Pacific indices were mixed on Thursday as several private surveys showed that manufacturing activity is picking up in the region, except for China.
Hong Kong’s Hang Seng index closed 0.49% higher. Meanwhile, China’s Shenzhen Component Index gained 0.34%, while the Shanghai Composite ended down by 0.64%.
Japan’s Nikkei and Topix finished lower by 0.76% and 0.67%, respectively.
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