Last Updated: 11:25 AM EST
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The S&P 500 (SPX) is in the green so far in today’s trading. This comes after some better-than-expected economic data. In fact, the Census Bureau released its retail sales report, which calculates the change in sales spending at retailers. Overall, spending increased by 2.28% year-over-year and 0% month-over-month. Economists had forecast a -0.3% month-over-month decrease.
When looking at the core retail figure, which removes automobile spending, sales increased by 0.4% month-over-month, beating estimates of 0.1%.
These results are especially good since inflation has been cooling and the job market has become more balanced. If retail sales remain healthy, it could potentially help the Federal Reserve avoid a recession.
First Published: 5:09 AM EST
U.S. futures inched lower on Tuesday morning after the Dow Jones Industrial Average (DJIA) hit a new record high in yesterday’s session. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones were down by about 0.14%, 0.13%, and 0.1%, respectively, at 4:18 a.m. EST, July 16.
On Monday, the Dow Jones, the S&P 500, and the Nasdaq Composite climbed higher by 0.53%, 0.28%, and 0.4%, respectively. The positive market sentiment was driven by Federal Reserve Chair Jerome Powell’s remark that the central bank might begin lowering interest rates even before inflation reaches its 2% target.
In today’s economic reports calendar, investors are looking forward to the release of the Retail Sales report for June. Furthermore, the Export and Import Price indices and May’s Business Inventory data are due today. On the earnings front, several major financial companies, including Bank of America (BAC), Morgan Stanley (MS), and Charles Schwab (SCHW), among others, will report their Q2 results today.
Moving to key corporate news, Goldman Sachs (GS) gained 2.5% yesterday on better-than-expected Q2 results. On the contrary, Macy’s (M) stock declined about 12% after it ended buyout talks with the investor group led by Arkhouse Management and Brigade Capital Management.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.19%. At the same time, WTI crude oil futures trended lower, hovering near $81.24 per barrel as of the last check.
Elsewhere, European markets opened lower today as investors evaluated Powell’s comment on rate cuts and the present political situation in the U.S.
Asia Pacific Markets Traded Higher on Tuesday
Most of the Asia-Pacific indices traded in the green today as investors assessed the interest rate scenario in the U.S.
China’s Shanghai Composite and Shenzhen Component indices rose 0.08% and 0.86%, respectively. At the same time, Japan’s Nikkei and Topix indices closed higher by 0.2% and 0.34%, respectively. However, Hong Kong’s Hang Seng index was down 1.6%.
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