Last Updated 4:00 PM EST
The Nasdaq 100 (NDX) and the S&P 500 (SPX) fell by 2.94% and 1.39%, respectively, in today’s trading as major chip stocks weighed down the market. Nevertheless, there was some positive news that came out of the real estate market. The Census Bureau released its U.S. Housing Starts report today, which measures the change in new residential buildings that began construction in the reported month on an annualized basis. In June, housing starts came in at 1.353 million versus expectations of 1.3 million. On a month-over-month basis, housing starts increased by 3%. This follows a 4.6% decrease in last month’s report.
In addition, U.S. Building Permits beat expectations, with a print of 1.446 million compared to the forecast of 1.4 million. This was an increase from the prior month’s report, which came in at 1.399 million, equating to a 3.4% month-over-month jump.
In other news, U.S. economic activity seems to be slowing down. In its July Beige Book report, the Federal Reserve noted that most districts experienced slight to modest growth in June and early July. Seven districts saw some growth, while five reported flat or declining activity. Prices and wages grew modestly, and employment saw a small increase.
Furthermore, household spending stayed about the same, and auto sales dropped in some areas due to a cyberattack on dealerships and high interest rates. Demand also fell for consumer and business loans. On the other hand, travel and tourism increased as expected for the season, while manufacturing activity varied widely.
Looking ahead, there’s a lot of uncertainty due to the upcoming election, geopolitical tensions, and inflation.
First Published: 5:14 AM EST
U.S. futures were down on Wednesday morning after the Dow Jones Industrial Average (DJIA) index hit a new record high for the second consecutive trading session. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones were down by about 1.01%, 0.57%, and 0.18%, respectively, at 3:58 a.m. EST, July 17.
Yesterday, the S&P 500 and the Nasdaq Composite indices closed higher by 0.64% and 0.2%, respectively. Further, the Dow Jones index gained 1.85% and registered its best day since June 2023. The rise in the DJIA was driven by a more than 6% increase in UnitedHealth (UNH) after it reported better-than-expected Q2 results.
In other key earnings releases, Bank of America (BAC) gained 5.4% on robust trading and investment banking performance in Q2, which helped beat consensus estimates. On the other hand, Charles Schwab (SCHW) dropped 10.2% following the release of weak Q2 results.
Moving to economic reports, the Federal Reserve’s Beige Book is set for release today. This book provides a summary of economic conditions in each of the 12 Federal districts in the U.S. In addition, June’s Industrial Production data will be made public today. On the earnings front, United Airlines (UAL), Discover Financial Services (DFS), Johnson & Johnson (JNJ), and U.S. Bancorp (USB), among others, will announce results today.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.18%. At the same time, WTI crude oil futures trended higher, hovering near $81.01 per barrel as of the last check.
Elsewhere, European markets opened lower today as investors awaited the European Central Bank’s (ECB) interest rate decision due tomorrow.
Asia Pacific Markets Traded Mixed on Wednesday
Asia-Pacific indices traded mixed today. The Japanese market benefited from a rise in business optimism among large Japanese manufacturers.
Meanwhile, Chinese stocks traded lower as investors evaluated President Xi Jinping’s comments at the Third Plenum session. This session refers to key meetings of the Chinese Communist Party’s Central Committee, where major economic and policy reforms are discussed.
Hong Kong’s Hang Seng index and Japan’s Topix index were up 0.15% and 0.37%, respectively. However, China’s Shanghai Composite and Shenzhen Component indices declined by 0.45% and 0.47%, respectively. At the same time, Japan’s Nikkei indices closed lower by 0.43%.
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