Stock Market News Today – Bears Dominate Trading after Hot Inflation Report

Last Updated 4:03 PM EST

Stock indices finished today’s trading session in the red after today’s hot inflation report. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) fell 1.02%, 1.05%, and 1.73%, respectively.

The real estate sector (XLRE) was the session’s laggard, as it lost 1.84%. Conversely, the materials sector (XLB) was the session’s leader, with a gain of 0.69%. In addition, WTI crude oil gained as it hovers around the mid-$76 per barrel range.

Furthermore, the U.S. 10-Year Treasury yield increased to 3.95%, an increase of more than six basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.81%.

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 2.7% in the first quarter.

This is higher than its previous estimate of 2.5%, which can be attributed to recent releases from the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor Statistics, and the National Association of Realtors.

Nevertheless, inflation continues to be a problem around the world. Therefore, it’ll be interesting to see what the actual GDP growth will be and how it’ll change going forward as higher rates start to impact the economy.

Last Updated 1:31PM EST

Stock indices are in the red so far in today’s trading session. As of 1:31 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 1.3%, 1.5%, and 2.2%, respectively.

Earlier today, the University of Michigan released its results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 2.9%. This was in line with the forecast and remained flat compared to the previous month.

Taking a look at consumer sentiment, results came in at 67, which was better than the expected 66.4. This is a jump compared to last month’s reading of 64.9. In addition, consumer expectations were higher than expected. February saw a print of 64.7 versus the forecast of 62.3. This was also an increase compared to last month’s result of 62.7.

Last Updated: 11:30AM EST

Stocks remain under pressure in the later moments of this morning’s trading session. As of 11:30 a.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 1.1%, 1.3%, and 1.9%, respectively.

On Friday, the Census Bureau released its United States New Home Sales data for January, which came in at 670,000. For reference, forecasters were expecting a print of 620,000. This was also much higher than last month’s report of 625,000.

However, the increase in sales was likely due to lower sales prices. Indeed, the median sales price was $427,500 in January compared to $442,100 in December. Furthermore, the average sales price was $474,400, lower than the $528,400 average seen in the prior month.

In addition, this was significantly lower than last year’s figure of 788,000. The New Home Sales metric measures the number of single-family homes sold in the prior month (on an annualized basis).

The reduced year-over-year activity from buyers can be attributable to higher interest rates, which have made mortgage payments more expensive and more difficult to qualify for.

Last updated: 9:47AM EST

Stocks opened in the red on Friday after the personal consumption expenditure (PCE) data came in hotter than expected. The PCE index rose by 1.8% month-over-month in January, higher than consensus forecasts of an increase of 1.2%. This was the biggest rise in the index in the past two years and was driven by higher auto sales.

This has led investors to expect an interest rate hike of 25 basis points in the months of March, May, and June.

The Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 1.9%, 1.6%, and 1.4%, respectively, as of 9:47 a.m. EST, Friday.

First published: 5:30AM EST

U.S. futures are trending down on Friday after facing a roller coaster trading day on February 23. Muted gross domestic product (GDP) figure and a sixth straight week of low jobless claims, coupled with mixed earnings reports, kept traders on their toes.

Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 0.65%, 0.30%, and 0.20%, respectively, as of 5:00 a.m. EST, Friday.

Today, investors await key economic data, including the personal consumption expenditures (PCE) report to be released by the Bureau of Economic Analysis at 8:30 a.m. EST. The PCE measures the change in the prices of goods and services bought by consumers. Investors and bank officials consider PCE as a better gauge of inflation as it includes a wider coverage of goods and services compared to the consumer price index (CPI).

As per economists polled by Dow Jones, the core PCE reading for January is expected to rise by 4.4% on an annual basis, while growing 0.5% from the previous month.

The other two important readings due today are the personal income and consumer spending reports. January’s personal income reading is expected to rise 1.2% over the prior month, while the metric had grown only 0.2% in December. At the same time, January’s consumer spending is expected to increase by 1.4%, while the same metric had shown a decline of 0.2% in December.

Additionally, new home sales figures are due today at 10:00 a.m. EST. January’s figure is expected to show a rise of 0.6%, much smaller compared to an increase of 2.3% in the previous month.

All these economic data will indicate the consumer’s strength while displaying the impact of inflationary pressures. The Federal Reserve will decide on the future course of monetary policy based on the combination of all the economic indicators.

The GDP figures released yesterday also came in lower than expected. In the fourth quarter of Fiscal 2022, U.S. GDP grew at 2.7% versus estimates of 2.9% and 3.2% in the third quarter. Also, the weekly jobless claims number came in at 192,000, a decline of 3,000 in the week ended February 16.

European indices are trading higher today on a slew of economic data and solid earnings releases.

Asia-Pacific Markets

The Asia-Pacific markets ended mixed today. Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the day in the red, down 1.68%, 0.62%, and 0.51%, respectively.

Meanwhile, Japan’s Nikkei and Topix closed up 1.29% and 0.67%, respectively.

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