Last Updated: 4:17 PM EST
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Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.66%, 1%, and 0.78%, respectively. This comes after the U.S. housing market showed a strong rebound in December, with housing starts surging 15.8% month-over-month to an annualized rate of 1.499 million. This exceeded the consensus estimate of 1.320 million and marked a significant improvement from the revised November figure of 1.294 million. Single-family housing starts also rose, increasing by 3.3% to a rate of 1.050 million.
While housing starts were strong, building permits declined 0.7% month-over-month to a rate of 1.483 million. However, single-family authorizations rose 1.6% to a rate of 992,000. For the full year 2024, housing starts and permits were down slightly from 2023, with 1.364 million housing units started and 1.471 million authorized.
Separately, Chicago Fed President Austan Goolsbee, known for his dovish stance on monetary policy, is taking a more patient approach to future rate cuts. In a recent interview with the Wall Street Journal, Goolsbee said he was less concerned about a labor market slowdown due to the stabilization of the job market at a full-employment-like level.
Goolsbee’s revised outlook is influenced by the latest unemployment rates, which rose to 4.2% in November before easing to 4.1% in December. Despite this increase, he believes the labor market is nearing equilibrium, which is characterized as full employment.
Looking ahead, Goolsbee remains optimistic about inflation trending toward the Fed’s 2% target. He also believes the neutral interest rate, which neither stimulates nor hinders the economy, is lower than the current policy rate. This suggests that Goolsbee may support further rate cuts.
First Published: 3:44 AM EST
U.S. stock futures traded slightly higher on Friday morning, following a weak trading session on Thursday. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.18%, 0.18%, and 0.17%, respectively, at 3:23 a.m. EST, January 17.
In the previous session, the Dow Jones, the S&P 500, and the Nasdaq Composite ended the day lower by 0.16%, 0.21%, and 0.89% respectively. The technology stocks led the downturn, with Tesla (TSLA), Nvidia (NVDA), and Apple (AAPL) declining 3.4%, 2%, and 4%, respectively. Despite the recent volatility, all three major indices are still on track for positive weekly returns.
In major stock market news, AAPL stock declined 4% yesterday due to reports that iPhone sales in China remained weak in 2024. Also, Bank of America (BAC) was down 1% despite reporting better-than-expected Q4 results. However, Morgan Stanley (MS) rose 4% following the release of upbeat fourth-quarter results.
Looking ahead, investors will be closely watching key economic data releases, including Building Permits and Housing Starts for December. In addition, several companies such as Schlumberger (SLB), TFC Financial (TFC), and State Street (STT) are slated to release their quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.595%. Simultaneously, WTI crude oil futures are trending higher, hovering near $79.32 per barrel as of the last check.
Elsewhere, European indices opened higher on Friday as investors looked forward to Donald Trump’s inauguration as U.S. President on January 20.
Asia-Pacific Markets Traded Mixed on Friday
Most of the Asia-Pacific indices were mixed today as investors assessed several economic releases from China. The country’s better-than-expected GDP data and Retail Sales data points helped lift investor sentiment.
At the same time, Hong Kong’s Hang Seng Index was up 0.27%. Also, China’s Shanghai Composite and Shenzhen Component indices gained 0.18% and 0.6%, respectively. However, Japan’s Nikkei and Topix indices declined 0.31% and 0.33%, respectively.
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