Last Updated 4:04 PM EST
Stock indices finished the last day of August’s trading mixed. The Nasdaq 100 (NDX) gained 0.25%, whereas the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) fell 0.16% and 0.49%, respectively.
Furthermore, the U.S. 10-Year Treasury yield decreased to 4.1%, a drop of two basis points. Similarly, the Two-Year Treasury yield also decreased, as it hovers around 4.86%.
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 5.6% in the third quarter.
This is lower than its previous estimate of 5.9%, which can be attributed to recent releases from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis.
Last updated: 2:30 PM EST
Stocks are mixed so far in today’s trading. After eight consecutive quarterly drops, residential loans saw an increase. A report by real estate data curator ATTOM revealed that Q2 residential mortgages were down 38% year-over-year at 1.56M but surged by 21% from Q1. This upswing was powered by stable mortgage rates and an invigorated Spring home-buying mood, resulting in lenders disbursing $494B in residential mortgages.
Meanwhile, Freddie Mac’s recent survey noted that long-term mortgage rates have steadied, with 30-year fixed rates averaging at 7.18%. Sam Khater, Freddie Mac’s chief economist, highlighted the challenge in predicting rate trajectories due to recent fluctuations but expressed hope that clarity might emerge after the Federal Reserve’s upcoming decisions on interest rate adjustments.
Last updated: 11:30 AM EST
Equity markets are in the green so far in today’s trading session. Earlier today, the United States Chicago Purchasing Managers Index was released by ISM-Chicago, which measures the economic health of the manufacturing sector in Chicago. An expansion is defined by a number that is greater than 50, whereas a reading that is lower is considered a contraction.
In August, the number came in at 48.7, which was higher than the expected 44.1 from forecasters and an increase from last month’s report of 42.8. It’s worth noting that the Chicago PMI has been in an overall downtrend since its peak of 75.2 back in May 2021. In addition, this marks the twelfth consecutive month that the manufacturing sector in Chicago has contracted.
Last updated: 9:30 AM EST
Stocks opened higher on Thursday morning, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) inching higher by 0.33%, 0.21%, and 0.3%, respectively, at 9:30 a.m., EST, August 31.
The latest inflation data indicated that core personal consumption expenditure (PCE), excluding food and energy costs, rose by 0.2% in July. On an annualized basis, core PCE went up to 4.2% in July as compared to 4.1% in the prior month and was in line with consensus estimates. The costs of goods and services advanced by 0.2% in July, meeting economists’ forecasts. Overall, inflation increased by 3.3% over the past year from 3% earlier and remained stubbornly above the Fed’s inflation target of 2%.
Meanwhile, initial jobless claims fell by 4,000 to 228,000 in the week ending August 26. This was the lowest level of claims since the week ending July 29. Economists had forecasted that new claims would increase by 5,000 to 230,000.
The number of people claiming jobless benefits went up by 28,000 to 1.73 million in the week ending August 19 – its highest level since early July. On an unadjusted basis, jobless claims dropped by 6,970 to 192,467 in the week ending August 26.
First published: 4:15 AM EST
U.S. Futures are trending higher on the last trading day of August. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are inching higher by 0.06%, 0.13%, and 0.32%, respectively, at 4:00 a.m., EST, August 31.
The three major averages clocked their four-day winning streak on August 30. Stocks jumped in yesterday’s trading following the cooler-than-expected ADJ jobs data that signals a slowdown in the labor market. Even so, the major averages are on track to finish August on a negative note.
Meanwhile, traders will closely watch the personal consumption expenditures (PCE) data due today. The Fed considers PCE one of the important inflation measures. Core PCE for July is expected to rise by 4.2% annually, up from a 4.1% increase registered in June. Also, data on the Initial Jobless Claims for the week ending August 26 will be out today.
On the earnings front, Broadcom (AVGO), Lululemon Athletica (LULU), Dollar General (DG), Campbell Soup (CPB), and Ollie’s Bargain Outlet (OLLI) will report their earnings today. Notably, shares of cybersecurity company Salesforce (CRM) jumped 6% in extended trading yesterday after it reported solid beat-and-raise results. On the other hand, CrowdStrike (CRWD) stock struggled to find momentum after hours, despite beating market expectations.
Elsewhere, European stocks opened higher this morning following solid Q2FY23 results from UBS Group (UBS). The Swiss banking giant displayed its strong financial footing in its first results since acquiring failed bank Credit Suisse. UBS posted a Q2 profit of $28.88 billion, much higher than the analysts’ expectation of $12.8 billion.
Asia-Pacific Markets End Mixed on Thursday
Asia-Pacific indices finished mixed today following data on China’s factory activity. In August, the official manufacturing purchasing managers’ index stood at 49.7, showing a fifth straight month of contraction.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended lower by 0.50%, 0.55%, and 0.61%, respectively.
On the contrary, Japan’s Nikkei and Topix indices ended up by 0.88% and 0.80%, respectively. Japanese stocks jumped on better-than-expected retail sales data in July.
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