Poised To Build On Yesterday’s Losses

Articles From: Briefing.com
Website: Briefing.com

The S&P 500 futures are down 33 points and are trading 0.9% below fair value. The Nasdaq 100 futures are down 107 points and are trading 0.9% below fair value. The Dow Jones Industrial Average futures are down 271 points and are trading 0.8% below fair value.

Equity futures indicate a lower open for the stock market, carrying over yesterday’s downside momentum. Recession and Fed rate hikes fears continue to plague investors after the latest slate of economic data. 

Total housing starts declined 1.4% month-over-month in December to a seasonally adjusted annual rate of 1.382 million units (Briefing.com consensus 1.355 million) while total building permits declined 1.6% month-over-month to a seasonally-adjusted annual rate of 1.330 million (Briefing.com consensus 1.370 million).

The key takeaway from the report is that new single-family starts increased by 11.3% month-over-month even though total starts recorded a month-over-month decrease. This element lends some optimism regarding a sector that has been pressured by rising rates and decreasing affordability. That said, building permits, which have a leading indicator status, decreased for the third consecutive month.

Initial jobless claims for the week ending January 14 decreased by 15,000 to 190,000 (Briefing.com consensus 212,000). Continuing jobless claims for the week ending January 7 increased by 17,000 to 1.647 million.

The key takeaway from the report is that new claims were at their lowest level since late September, implying no new difficulties in the labor market that could put a quick stop to the Fed’s hiking cycle.

Initial jobless claims for the week ending January 14 decreased by 15,000 to 190,000 (Briefing.com consensus 212,000). Continuing jobless claims for the week ending January 7 increased by 17,000 to 1.647 million. 

The key takeaway from the report is that new claims were at their lowest level since late September, implying no new difficulties in the labor market that could put a quick stop to the Fed’s hiking cycle.  

Earlier this morning, JPMorgan CEO Jamie Dimon told CNBC in an interview “I think there’s a lot of underlying inflation, which won’t go away so quick,” adding that he thinks rates will top 5.0%.

Also, many names that reported quarterly results since yesterday’s close are trading down ahead of the open.

The 2-yr Treasury note yield is up two basis points to 4.11% and the 10-yr note yield is up two basis points to 3.40%. The U.S. Dollar Index is down 0.1% to 102.28.

Energy complex futures trade in mixed fashion. WTI crude oil futures are down 0.1% to $79.73/bbl and natural gas futures are up 0.8% to $3.14/mmbtu.

Originally Posted January 19, 2023 – Poised to build on yesterday’s losses

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Briefing.com and is being posted with its permission. The views expressed in this material are solely those of the author and/or Briefing.com and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.