Last Updated: 4:05PM EST
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 1.95%, 1.23%, and 1.05%, respectively. This led to the S&P 500 hitting a new record close of 4,839.82. Furthermore, the U.S. 10-Year Treasury yield remained flat at 4.14%. On the other hand, the Two-Year Treasury yield gained, as it hovers around 4.4%.
On Friday, the University of Michigan released its preliminary results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 2.8%, which was lower than the expected 3% and decreased compared to the previous month.
Taking a look at consumer sentiment, results came in at 78.8, which was higher than the expected 70. This is also an increase compared to last month’s reading of 69.7. In addition, consumer expectations came in higher than expected. January saw a print of 75.9 versus the forecast of 67. This was also an increase compared to last month’s result of 67.4.
In other news, 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 2.4% in the fourth quarter.
This is unchanged from its previous estimate, which can be attributed to this morning’s existing home sales report from the National Association of Realtors.
Last Updated: 10:40AM EST
Stock indices are in the green so far in today’s trading despite some disappointing real estate data. On Friday, the National Association of Realtors released its U.S. Existing Home Sales report, which measures the change in sales of existing residential buildings during the previous month on an annualized basis. Existing home sales came in at 3.78 million for the month of December, below the expected 3.82 million.
As a result, existing home sales decreased month-over-month by -1% after a 0.8% increase in November. Indeed, existing home sales have increased only twice in the past 21 months as higher interest rates continue to make homeownership difficult. On a year-over-year basis, sales fell 6.2%.
On an even more sour note, 2023 saw full-year sales of 4.09 million units, which was the lowest result since 1995.
First Published: 4:00AM EST
U.S. Futures inched higher on Friday morning following a technology-led rally yesterday. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.39%, 0.18%, and 0.03%, respectively, at 3:27 a.m. EST, January 19.
Among the key economic releases due today are January’s Michigan Consumer Sentiment Index and preliminary readings of 5-year Consumer Inflation Expectations, released by the University of Michigan. These reports help gauge consumer confidence levels and consumers’ views of long-term inflation in the United States.
On the earnings front, Travelers (TRV), Ally Financial (ALLY), Schlumberger (SLB), and State Street (STT) will report their quarterly performances later today.
Moving to major corporate news, Super Micro Computer gained 10% on better-than-expected quarterly results. Also, Apple (AAPL) shares closed higher after Bank of America upgraded the stock’s rating to Buy. On the contrary, iRobot (IRBT) declined 40% in yesterday’s extended trading session on the news that the European Union Commission may decline Amazon’s bid to acquire iRobot.
Meanwhile, oil prices were steady at the time of writing after closing at a three-week high on escalating tensions in the Middle East. The WTI crude oil futures hovered near $74.25 per barrel as of the last check.
Elsewhere, European markets opened higher on Friday following a strong trading session yesterday. Also, investors are eagerly awaiting insights on economic policy from both the European Central Bank’s Chief, Christine Lagarde, and the International Monetary Fund’s head, Kristalina Georgieva.
Asia-Pacific Markets End Mixed on Friday
Asia-Pacific indices ended mixed on Friday. Stocks in Japan surged after inflation slowed for a second consecutive month in December, while Hong Kong and mainland China markets were dragged lower on worries about economic and policy uncertainties.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended down by 0.68%, 0.47%, and 0.68%, respectively.
At the same time, Japan’s Nikkei and Topix indices finished higher by 1.4% and 0.72%, respectively.
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