Last updated 4:02 PM EST
Stock indices ended today’s trading session in the red. Nasdaq 100 (ndx), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.11%, 0.57% and 0.05% respectively.
technology sector (xlk) was the laggard of the session as it lost 1.84%. In contrast, the energy sector (xle) was the session leader with a gain of 2.31%.
In addition, the US 10-year Treasury yield declined to 4.27%, a decline of three basis points. In contrast, the two-year Treasury yield rose as it hovered around 5.01%.
Last updated: 11:58am EST
The trend of shares has been mixed so far in today’s trading session. On Tuesday, the National Federation of Independent Business (NFIB) released its Small Business Optimism Index for the month of August. As the name suggests, it is a survey that measures the level of optimism among small businesses.
The index declined 0.6 points to 91.3 in August, which was worse than expected. As a result, it has remained below its 49-year average of 98 for the last 20 months. Additionally, 23% of small business owners cited inflation as their biggest concern related to operations. This was up from 21% the previous month.
Still, 27% of businesses surveyed said they had increased selling prices. Of the small businesses that saw lower profits, 24% attributed the decline to higher material costs, while 15% cited labor costs. Weak sales were to blame for 28%.
The data highlights that consumer spending is still strong as 72% of respondents who saw a decline in profits did not attribute weak sales. However, this reflects the impact that inflation has on profitability, as the higher revenue figures actually led to operating profits, meaning earnings did not grow faster than sales.
Last updated: 9:30am EST
Stocks opened lower on Tuesday morning, with the Nasdaq 100 (ndx), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) retreating 0.4%, 0.22% and 0.09%, respectively, as of 9:30 a.m. EST, Sept. 12.
First published: 4:20am EST
US futures are trading lower on Tuesday morning after the three major averages ended the trading session with a positive trend yesterday. Futures on the Nasdaq 100 (ndx), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) as of 4:00 AM EST, September 12, down 0.13%, 0.21% and 0.24%, respectively.
This week, the sole focus will be on the August Consumer Price Index (CPI) and Producer Price Index (PPI) data coming on Wednesday and Thursday respectively. The market is hopeful that there will be a halt on rate hike in the FOMC meeting to be held on September 19-20. However, any unexpected data thrown up by these two reports could change the Federal Reserve’s decision.
Meanwhile, software giant Oracle (orcl) The stock fell 9% in extended trade yesterday after missing Q1FY24 sales estimates. On the other hand, shares of KC General (CASY) jumped 3.2% in extended trading hours on Monday after Q1FY24 earnings beat estimates.
Notably, Tesla (TSLA) The stock rose more than 10% in regular trading Monday after getting a new Street-high price target from Morgan Stanley. Additionally, Disney (districts) Shares rose on news of reaching a deal with cable provider Charter (CHTR) over transportation costs and restored channels. Similarly, chip maker Qualcomm (qcom) rose on Monday after the company said it would supply tech giant Apple (AAPL) for smartphones launching by 2026 with Snapdragon 5G chips.
In strong comments yesterday, JPMorgan (JPM) CEO Jamie Dimon criticized the new Basel III proposal. According to Dimon, the new rules will require JPM to maintain 30% more capital than European banks, making US banks “investable”. Dimon said the new stringent requirements would hurt banks’ ability to lend, never mind their financial soundness.
Elsewhere, European indices are trading in the green this morning following positive momentum in their US counterparts. Meanwhile, British chip designer Arm Holdings’ IPO was oversubscribed five times, forcing the company to close its IPO order booking a day earlier on September 12.
Asia-Pacific markets closed mixed on Tuesday
Asia-Pacific indices ended mixed on Tuesday. Traders are eagerly awaiting the US inflation data for August to know the future direction of monetary policy.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices declined 0.29%, 0.18% and 0.08%, respectively.
Japan’s indices reversed the trend and ended in positive territory. The Nikkei and Topix indexes closed 0.95% and 0.82% higher, respectively.
Are you interested in more economic insights? Join our live webinar.