Last Updated: 5:05 PM EST
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Stock indices finished today’s trading session mixed. The Nasdaq 100 (NDX) and the S&P 500 (SPX) gained 1.09% and 0.55%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) fell by 0.06%.
Earlier today, S&P Global released its monthly report for the U.S. Services Purchasing Managers’ Index, which measures the activity levels of purchasing managers in the service sector. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 56.8, which was lower than the expected 58.5.
Still, it’s worth noting that this indicator is higher than last month’s reading of 56.1 and remains in an overall uptrend ever since its trough in September 2022, when it hit a low of 43.7.
Separately, the U.S. Census Bureau put out its Factory Orders report, which measures the change in the total value of new purchase orders placed with manufacturers. During November, factory orders decreased by -0.4% on a month-over-month basis. This missed expectations of a -0.3% drop.
However, when excluding transportation, factory orders came in at 0.2%, which was the same as last month’s report.
First Published: 3:54 AM EST
U.S. futures traded modestly higher on Monday morning as investors awaited the release of key jobs data points this week. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.27%, 0.03%, and 0.17%, respectively, at 3:29 a.m. EST, January 6.
On Friday, major U.S. stock indices posted significant gains. The Dow Jones, the S&P 500, and the Nasdaq Composite rose 0.8%, 1.26%, and 1.77%, respectively. This rally was driven by a strong performance in technology stocks, such as Tesla (TSLA), Nvidia (NVDA), Palantir (PLTR), Super Micro Computer (SMCI), and AMD (AMD).
Despite the rally, investors remain cautious about the Federal Reserve’s interest rate trajectory. Further, the recent rise in the 10-year Treasury yield has raised concerns about the impact on economic growth.
On the economic front, investors are looking ahead to the Job Openings report on Tuesday and the ADP Employment Survey on Wednesday for insights into the health of the labor market. Further, the Nonfarm Payrolls report will be released on Friday. This data will provide valuable insights into the economy’s strength and may influence the Fed’s upcoming monetary policy decision.
Today, traders are awaiting the release of December’s S&P final U.S. Services Purchasing Managers’ Index (PMI) and Factory Orders for November.
In addition, investors will be closely monitoring corporate earnings reports from companies such as KB Home (KBH), Albertsons Companies (ACI), Constellation Brands (STZ), Walgreens Boots Alliance (WBA), and Delta Air Lines (DAL) set for release this week.
It must be noted that markets will be closed on Thursday, January 9, 2025, in observance of former President Jimmy Carter’s funeral service.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.624% at the time of writing. At the same time, WTI crude oil futures are trending lower, hovering near $73.63 per barrel as of the last check.
Elsewhere, European indices opened higher on Monday morning as investors looked forward to new catalysts to drive market momentum.
Asia-Pacific Markets Ended Lower on Monday
Asia-Pacific indices were in the red today. Japanese stocks took a hit after the region’s Composite and Services PMIs for December were revised lower. Also, concerns over China’s economic recovery and the potential for heightened trade tensions under Donald Trump’s administration hurt investor sentiment.
At the same time, Hong Kong’s Hang Seng Index was down 0.36%. Further, China’s Shanghai Composite and Shenzhen Component indices declined by 0.14% and 0.12%, respectively. Also, Japan’s Topix and Nikkei indices fell 1.47% and 1.02%, respectively.
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