Last Updated: 4:16 PM EST
Stock indices finished today’s trading session flat as investors wait for the Federal Reserve’s interest rate decision later this week. However, there were still some important economic data points that came out today. To begin with, the Census Bureau released its retail sales report which calculates the change in sales spending at retailers.
Overall, spending increased by 2.13% year-over-year and 0.1% month-over-month. Economists had forecast a -0.2% month-over-month decrease. However, when looking at core retail figures, which removes automobile spending, sales increased by 0.1% month-over-month, missing estimates of 0.2%.
In addition, the Federal Reserve put out its U.S. Industrial Production Report, which measures the change in the total value of output produced by manufacturers, utilities, and mines. These figures are adjusted for inflation.
For August, industrial production increased 0.8% on a month-over-month basis. This was better than the 0.2% that was expected and better than the previous month’s report of -0.9%.
Furthermore, the National Association of Home Builders released its U.S. NAHB Housing Market Index for September. The report measures home builder sentiment by surveying around 900 companies. A reading above 50 indicates that more home builders have a positive view of market conditions than a negative one. Today’s number came in at 41, meaning that most have a negative view of the market.
First Published: 3:38 AM EST
U.S. futures remained relatively flat on Tuesday morning as investors cautiously awaited the outcome of the Federal Reserve’s two-day policy meeting. Meanwhile, market expectations for a more significant rate cut have intensified, with CME’s FedWatch Tool showing over 62% odds of a 50 basis point reduction. Futures on the S&P 500 (SPX) and the Nasdaq 100 (NDX) were up by about 0.04% and 0.18%, respectively, at 2:43 a.m. EST, September 17, while the Dow Jones Industrial Average (DJIA) was down 0.01%.
The previous trading session ended on a mixed note. On Monday, the Dow Jones closed at a record high, up 0.55%, and the S&P 500 gained 0.13%. However, the Nasdaq Composite declined by 0.52%, dragged down by tech stocks.
In major news, Apple (AAPL) stock declined 2.8% after some Wall Street analysts raised concerns over weaker iPhone 16 demand. The news also pulled down the stocks of several semiconductor companies in Apple’s supply chain, including Broadcom (AVGO), Skyworks Solutions (SWKS), Qorvo (QRVO), and Cirrus Logic (CRUS).
Importantly, Intel (INTC) was the standout performer in both regular and extended trading yesterday, with gains of 6.4% and 8%, respectively. The increase can be attributed to Intel’s new deal with the U.S. government and its strategic decision to spin off its foundry business.
On the economic front, investors will be monitoring today’s August Retail Sales data for insights into U.S. consumer health, which could impact the Fed’s interest rate decisions.
In addition, traders will also monitor other economic data points, including Industrial and Manufacturing Production, and the National Association of Home Builders Housing Market Index. These indicators will provide further insights into the state of the U.S. economy.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 3.629% at the time of writing. Further, the WTI crude oil futures are trending higher, hovering near $70.56 per barrel as of the last check.
Elsewhere, European markets are expected to open higher on Tuesday as investors eagerly await interest rate decisions from the U.S. Federal Reserve and the Bank of England later this week.
Asia Pacific Market Traded Mixed on Tuesday
Asia-Pacific markets traded on a mixed note as investors braced for the latest monetary policy decisions from Japan and the U.S. this week.
At the time of writing, Hong Kong’s Hang Seng index was up 1.35%. However, Japan’s Nikkei and Topix indices declined 1.03% and 0.6%, respectively.
Investors should note that China’s market remained closed today for the Mid-Autumn festival. The market will reopen tomorrow.
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