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Stock Market News

Our market analysts keep you updated on the latest market trends including stock market data, news, market activity, and economic reports in the daily stock market commentary.

Opening | Closing

Opening Comment — Friday, December 09, 2022

DJIA: 33,781.48, up 183.56
S&P 500: 3,963.51, up 29.59
Nasdaq:11,082.00, up 123.45

Stocks poised for weekly declines

U.S. equity futures are sliding as investors digest today’s update on wholesale inflation and look ahead to next week’s economic data and the Federal Reserve (Fed) policy meeting. The Dow and S&P 500 are falling 0.5% in pre-market action. The Nasdaq 100 is trading 0.6% below fair value on the GLOBEX. Despite today’s moves, the major averages are on track to notch weekly declines as recessionary concerns weigh on investor sentiment. Yesterday, stocks recouped some losses as investors shifted their attention to the week ahead. The Dow added 183 points, while the Nasdaq Composite climbed 1.1%. The S&P 500 advanced 0.8%. Meanwhile, initial jobless claims came in at 230,000 in the week ended December 3, up from the prior week’s 226,000 print. While claims increased, they remain near historic lows and provide minimal evidence of a softening labor market.

On the data front today, November’s Producer Price Index (PPI) climbed 0.3% month-over-month, while core PPI (which excludes the more volatile food and energy prices) notched a 0.4% monthly gain. Headline PPI showed prices increased 7.4% year-over-year, easing from the prior month’s revised 8.1% print. Finally, headline core PPI came in at 6.2%, down from October’s upwardly revised 6.8% annual gain. Also highlighting the docket will be a preliminary December reading of University of Michigan’s Consumer Sentiment Index. The report is forecasted to come in at 57, up from November’s 56.8 print. Meanwhile, the short-term and long-term inflation expectations components are anticipated to remain unchanged from the prior month. Investors can also look for a final reading on October wholesale inventories and the third-quarter reading for household change in net worth.

Over in the commodity pits, West Texas Intermediate (WTI) crude is climbing 0.6% to $71.89/barrel after notching a fresh 2022 low yesterday. The domestic benchmark is heading for a weekly decline of almost 10% as demand concerns and heightened recessionary worries outweigh optimism over China’s reopening. In the metals complex, spot gold is trading just above the flat line amid a softer U.S. dollar and ahead of next week’s Fed meeting. The yellow metal is headed for a small weekly decline as investors remain uncertain over the future course of interest rate hikes.

Across the pond, the British government has announced a massive overhaul of financial regulation in an attempt to spur growth in the financial sector. Meanwhile, the European Commission has reported the European Union sanctions on Russia will be limited to a few sectors rather than have a broader impact on the economy. Market participants are turning their attention to the European Central Bank (ECB) and Bank of England (BOE) policy meetings slated for next week. Overnight in Asia, China’s inflation data for November was in-line with expectations, showing prices are continuing to ease. In FOREX trading, the U.S. Dollar Index is pausing its ascent ahead of next week’s inflation data and central bank meetings. The greenback is poised to see modest gains this week amid uncertainty on the economic outlook.

Closing Comment — Thursday, December 08, 2022

DJIA: 33,781.48, up 183.56
S&P 500: 3,963.51, up 29.59
Nasdaq: 11,082.00, up 123.45

Stocks rebound; oil slides

U.S. equities finished higher as Wall Street looked ahead to upcoming inflation data and next week’s Federal reserve (Fed) meeting. Tomorrow, the November Producer Price Index (PPI) data is set to be released and is expected to show wholesale prices have eased. The Dow added 183 points, while the Nasdaq Composite climbed 1.1%. The S&P 500 advanced 0.8%. Nine of 11 S&P 500 sectors finished in positive territory, with Information Technology pacing gains.

On the data front, initial jobless claims increased to 230,000 in the week ended December 3, up from the prior week’s 226,000 print. While claims increased, they remain near historic lows and provide minimal evidence of a softening labor market. Treasury yields climbed as investors remain uncertain about the future course of interest rate hikes from the Fed. The yield on the benchmark 10-year note climbed eight basis points (0.08%) to 3.49%, while the yield on the 30-year bond increased two basis points (0.02%) to 3.44%. The yield on the two-year note, which is more sensitive to changes in Fed policy, gained seven basis points (0.07%) to 4.32%. In commodities, West Texas Intermediate (WTI) crude reversed earlier gains to fall 0.8% to $71.45/barrel following reports a major crude pipeline from Canada to the U.S. is resuming services after being shut due to a leak. Today’s moves brought the domestic benchmark to a fresh 2022 low. The U.S. Dollar Index slipped 0.3% as investors look towards next week’s rate decisions from the Fed, the European Central Bank, and the Bank of England.

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