Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.88%, 0.69%, and 57%, respectively.
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The technology sector (XLK) was the session’s laggard, as it lost 1.05%. Conversely, the utilities sector (XLU) was the session’s leader, with a gain of 0.18%.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.3%, an increase of 11 basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 5.02%.
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 unchanged compared to the previous estimate, which can be attributed to recent releases from the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, and the Institute for Supply Management.
Last updated: 2:45PM EST
Stock indices are in the red so far in today’s trading. Earlier today, the Federal Reserve released its Beige Book report. During July and August, the U.S. economy witnessed a modest uplift thanks in part to a summer spike in tourism. This report noticed that many people were keen on making the most of their freedom as the pandemic eased, resulting in a tourism boom.
However, it wasn’t all good news – spending in other areas slowed down a bit, with people not shopping as much for non-essential items. It seems like consumers might be using up their savings and starting to borrow money to keep up their spending habits.
In addition, price growth decelerated, which was noticeable mainly in the manufacturing sector and consumer goods. Meanwhile, manufacturers were a bit relieved to see fewer delays in getting the supplies they need, even though the demand for their products has gone down a bit.
Furthermore, Car sales saw a bit of an uptick, but it was mostly because there were more cars available to buy rather than more people wanting to buy them.
The report also mentioned that many companies are still finding it tough to find the right people to hire, which has kept job growth slow.
Last updated: 11:26AM EST
On Wednesday, the Institute for Supply Management released its monthly report for the ISM Non-Manufacturing Purchasing Managers’ Index, which measures the overall economic condition of the non-manufacturing sector.
A number over 50 represents an expansion, whereas anything below 50 signals a contraction. The report came in at 54.5, higher than the expected 52.5 and higher than last month’s reading of 52.7.
Furthermore, the ISM Non-Manufacturing Employment report came in at 54.7, which also increased from last month’s report of 50.7.
Last updated: 9:30AM EST
Stocks were lower at open on Wednesday, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) down by 0.31%, 0.33%, and 0.27%, respectively, at 9:30 a.m., EST, September 6.
Meanwhile, mortgage applications fell to their lowest level since 1996, with the composite mortgage applications index down by 2.9% in the week ending September 1 as compared to an increase of 2.3% a week back. The seasonally adjusted Purchase Index declined by 2.1% from one week earlier. The fixed-rate mortgage for a 30-year period dropped to 7.21% versus 7.31% in the previous week.
Joel Kan, MBA’s Vice President and Deputy Chief Economist, commented, “Mortgage applications declined to the lowest level since December 1996, despite a drop in mortgage rates. Both purchase and refinance applications fell, with the purchase index hitting a 28-year low, as prospective buyers remain on the sidelines due to low housing inventory and elevated mortgage rates.”
When it comes to the U.S. trade data, the trade deficit widened less than expected in July to $65 billion as compared to economists’ forecasts of $68 billion. The United States clocked exports at $251.7 billion, while imports stood at $316.7 billion. The average goods and services deficit fell by $2.7 billion to $65.2 billion for the three months ending in July.
First published: 5:13AM EST
U.S. stock futures inched lower on early Wednesday as macro uncertainty continues to weigh on investor sentiment. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down 0.29%, 0.17%, and 0.10%, respectively, at 5.13 a.m., EST, September 6.
The S&P 500 and Dow Jones declined yesterday due to a rise in treasury yields and oil prices. The extension of voluntary supply cuts by Saudi Arabia and Russia drove crude oil prices higher.
Economic releases scheduled for Wednesday include a report on the U.S. trade deficit and the ISM Services Purchasing Managers’ Index (PMI). Traders will also await the Federal Reserve’s Beige Book, which provides a summary of economic activity. The Beige Book, based on twelve district reports, comes ahead of the FOMC meeting to be held on September 19-20, when the Fed will decide whether to leave the interest rates unchanged or continue with rate hikes to tame inflation.
On the earnings front, videogame retailer GameStop (NYSE:GME), enterprise AI software provider C3.ai (NYSE:AI), clothing retailer American Eagle Outfitter (NYSE:AEO), and EV charging company ChargePoint (NYSE:CHPT) are some of the companies that will report their quarterly performance today.
Elsewhere, European indices trended lower due to the developments in the oil market. Meanwhile, the latest data indicated that new manufacturing orders in Germany declined 11.7% in July on a month-over-month basis and fell 10.5% year-over-year.
Asia-Pacific Markets Mixed on Wednesday
Asia-Pacific indices were mixed on Wednesday. Hong Kong’s Hang Seng index declined 0.04%. While China’s Shanghai Composite ended 0.12% higher, the Shenzhen Component Index was down 0.24%.
It is worth noting that the Hong Kong-listed shares of Chinese property stocks surged today, with the stock of embattled real-estate company Evergrande being the top gainer. The surge in real-estate stocks came in as Country Garden reportedly paid $22.5 million in bond coupon payments in an attempt to avoid default.
Meanwhile, Japan’s Nikkei and Topix indices both closed higher by 0.62% on Tuesday.
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