Last Updated: 4:05 PM EST
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Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 2.44%, 1.86%, and 0.9%, respectively.
Earlier today, Core PCE, which is the Fed’s preferred inflation metric, came in at 2.7% year-over-year and 0.3% month-over-month. In addition, yearly and monthly headline PCE figures were 2.1% and 0.2%, respectively. Most of these metrics were in line with expectations, except for the annual core PCE, which was slightly higher than the 2.6% estimate.
In addition, the Department of Labor released its Initial Jobless Claims report, which came in better than expected. In the past week, 216,000 people filed for unemployment insurance for the first time. Expectations were for 229,000 individuals.
In addition, Continuing Jobless Claims, which measures the number of unemployed people who qualify for unemployment insurance, came in at 1.862 million. This was below the forecast of 1.89 million and lower than last week’s print of 1.888 million.
It’s worth noting that Continuing Jobless Claims have been on an overall uptrend since hitting record lows in September 2022, as the layoffs from large companies continue to impact the workforce.
Lastly, the Atlanta Federal Reserve revealed its initial GDPNow reading for the new quarter, 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 fourth quarter.
First Published: 4:41 AM EST
U.S. stock futures trended lower on Thursday morning as investors braced for the release of PCE inflation data and results from big tech companies such as Apple (AAPL) and Amazon (AMZN). Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down 1.04%, 0.75%, and 0.41%, respectively, at 4:00 a.m. EST, October 31.
In regular trading on Wednesday, the Dow Jones declined 0.22%, the SPX lost 0.33%, and the Nasdaq Composite fell by 0.56%. Traders dragged down Meta Platforms’ (META) shares in extended trading yesterday despite the social media giant reporting a Q3 beat. Investors seem to be unhappy with Meta’s user growth, which came in below expectations.
Moreover, Microsoft (MSFT) shares fell 3.7% in extended trading despite a top and bottom line beat as revenue guidance came in below analysts’ consensus. Also, AI player Super Micro Computer (SMCI) declined 32.7% yesterday after chief auditor Ernst & Young LLC resigned.
In earnings news, more big tech companies are expected to report today. These include Apple, Amazon, Uber Technologies (UBER), Intel Corp. (INTC), Mastercard (MA), and Li Auto (LI), among others.
Turning to economic data, traders are keenly awaiting today’s release of the PCE (personal consumption expenditure) price index, which is also the Federal Reserve’s preferred inflation gauge. Experts predict that PCE increased by 0.20% in September on a sequential basis and by 2.1% compared to the prior year. Moreover, the weekly jobless claims are due this morning.
The Federal Open Market Committee (FOMC) meeting due November 7 will be based on the PCE reading for September and the October payroll report due for release this Friday.
Meanwhile, the U.S. 10-year treasury yield is trending higher at the time of writing, floating near 4.28%. At the same time, WTI crude oil futures trended higher, hovering near $68.95 per barrel as of the last check.
Elsewhere, European markets opened lower today as investors braced for the euro zone inflation data. The reading will guide the European Central Bank’s (ECB) interest rate decisions, due soon. Investors will also watch key European corporate earnings from Shell (SHEL), Stellantis (STLA), and Anheuser-Busch Inbev SA (BUD), among others.
Asia-Pacific Markets Traded Mixed on Thursday
Asia-Pacific indices traded mixed today as Japan’s central bank held interest rates steady, while China’s factory activity showed signs of expansion after months of contraction.
China’s manufacturing purchasing managers index (PMI) for October stood at 50.1 against the expectation of a 49.9 (contraction), sending stocks higher. Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices rose 0.16%, 0.42%, and 1.25%, respectively, as of the last check.
Meanwhile, the Bank of Japan kept rates unchanged at 0.25% and gave no indication of any future rate hikes. Japan’s major indices, including the Nikkei and Topix, fell 0.50% and 0.30%, respectively, in reaction.
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