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U.S. stock markets closed lower on Thursday after a choppy session. Market participants waited cautiously for Fed Chairman’s lecture in a key central bank event. Economic data were mixed. Yields on U.S. sovereign bonds increased as recession fears eased. All three major stock indexes ended in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was down 0.4% or 177.71 points to close at 40,712.78. Notably, 17 components of the 30-stock index ended in negative territory while 13 in positive zone. At intraday high, the blue-chip index was up more than 316 points.
The tech-heavy Nasdaq Composite finished at 17,619.35, sliding 1.7% or 299.63 points due to weak performance by technology giants. The S&P 500 declined 0.9% to finish at 5,570.64. Seven out of the 11 broad sectors of the broad-market index ended in negative territory, while four in positive zone.
The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) tumbled 1.7%, 2.3% and 0.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 7.9% to 17.55. A total of 9.79 billion shares were traded on Thursday, lower than the last 20-session average of 11.89 billion. Decliners outnumbered advancers on the NYSE by a 2.16-to-1 ratio. On Nasdaq, a 2.25-to-1 ratio favored declining issues.
All Eyes on Jackson Hole Symposium
Market participants are eagerly waiting for the Fed’s upcoming annual Jackson Hole Economic Policy Symposium started from Aug 22. On Friday, the Fed Chairman Jerome Powell will deliver his speech. Investors will keenly analyze that lecture to find out clues regarding the central bank’s future course regarding the interest rate movement.
At present, the CME FedWatch shows a 100% probability that the Fed will reduce the benchmark lending rate by 25 basis points in September. If this materializes, it will be the first rate cut in more than four years. The Fed fund rate is currently in the range of 5.25-5.5%, its 23-year high level.
Recession Fears Evaporates
In last couple of weeks Wall Street witnessed several strong economic data. Solid services sector PMI for July, an unexpected rise in retail and core retail sales in July and several measures of dwindling inflation rate boosted market participants’ confidence on the Fed’s much-hyped “soft landing” theory.
As a result, yield on the benchmark 10-Year U.S. Treasury Note increased to 3.863%. Consequently, shares of banking behemoths like JPMorgan Chase & Co. (JPM - Free Report) and Bank of America Corp. (BAC - Free Report) rose 1% and 1.3%, respectively. JPMorgan Chase currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor reported that initial claims increased 4,000 to 232,000 for the week ended Aug 17, higher than the consensus estimate of 230,000. Previous week’s data was revised upward by 1,000 to 228,000 from 227,000 reported earlier.
Continuing claims (those who have already received government aids and reported a week behind) increased 4,000 to 1.863 million for the week ended Aug 10. This was the highest level for insured unemployment since November 27, 2021. The previous week's level was revised downward by 5,000 from 1.864 million to 1.859 million.
The National Association of REALTORS reported that existing home sales came in at 3.95 million units, outpacing the consensus estimate of 3.93 million units. The metric for June was revised marginally upward to 3.9 million units from 3.89 million units reported earlier.
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Stock Market News for Aug 23, 2024
U.S. stock markets closed lower on Thursday after a choppy session. Market participants waited cautiously for Fed Chairman’s lecture in a key central bank event. Economic data were mixed. Yields on U.S. sovereign bonds increased as recession fears eased. All three major stock indexes ended in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was down 0.4% or 177.71 points to close at 40,712.78. Notably, 17 components of the 30-stock index ended in negative territory while 13 in positive zone. At intraday high, the blue-chip index was up more than 316 points.
The tech-heavy Nasdaq Composite finished at 17,619.35, sliding 1.7% or 299.63 points due to weak performance by technology giants. The S&P 500 declined 0.9% to finish at 5,570.64. Seven out of the 11 broad sectors of the broad-market index ended in negative territory, while four in positive zone.
The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) tumbled 1.7%, 2.3% and 0.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 7.9% to 17.55. A total of 9.79 billion shares were traded on Thursday, lower than the last 20-session average of 11.89 billion. Decliners outnumbered advancers on the NYSE by a 2.16-to-1 ratio. On Nasdaq, a 2.25-to-1 ratio favored declining issues.
All Eyes on Jackson Hole Symposium
Market participants are eagerly waiting for the Fed’s upcoming annual Jackson Hole Economic Policy Symposium started from Aug 22. On Friday, the Fed Chairman Jerome Powell will deliver his speech. Investors will keenly analyze that lecture to find out clues regarding the central bank’s future course regarding the interest rate movement.
At present, the CME FedWatch shows a 100% probability that the Fed will reduce the benchmark lending rate by 25 basis points in September. If this materializes, it will be the first rate cut in more than four years. The Fed fund rate is currently in the range of 5.25-5.5%, its 23-year high level.
Recession Fears Evaporates
In last couple of weeks Wall Street witnessed several strong economic data. Solid services sector PMI for July, an unexpected rise in retail and core retail sales in July and several measures of dwindling inflation rate boosted market participants’ confidence on the Fed’s much-hyped “soft landing” theory.
As a result, yield on the benchmark 10-Year U.S. Treasury Note increased to 3.863%. Consequently, shares of banking behemoths like JPMorgan Chase & Co. (JPM - Free Report) and Bank of America Corp. (BAC - Free Report) rose 1% and 1.3%, respectively. JPMorgan Chase currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor reported that initial claims increased 4,000 to 232,000 for the week ended Aug 17, higher than the consensus estimate of 230,000. Previous week’s data was revised upward by 1,000 to 228,000 from 227,000 reported earlier.
Continuing claims (those who have already received government aids and reported a week behind) increased 4,000 to 1.863 million for the week ended Aug 10. This was the highest level for insured unemployment since November 27, 2021. The previous week's level was revised downward by 5,000 from 1.864 million to 1.859 million.
The National Association of REALTORS reported that existing home sales came in at 3.95 million units, outpacing the consensus estimate of 3.93 million units. The metric for June was revised marginally upward to 3.9 million units from 3.89 million units reported earlier.