Matthew Columbo
Wall Street’s major averages made small moves on Friday, as investors assessed more quarterly reports as they looked ahead to an eventful week packed with heavyweight corporate results and central bank policy meetings.
Approaching midday, the high-tech Nasdaq Composite Index (COMP. IND) was marginally higher 0.05% to 14070.06 points, while the S&P 500 index (SP500) He was 0.25% higher to 4546.18 points. Both Fahren sell it The day before, with the previous announcement of heavy losses on the back of a slide in Netflix (NFLX) and Tesla (TSLA) after their disappointing earnings.
dao (DJI) added 0.22% to 35,301.93 points, with the blue-chip index close to achieving a ten-day winning streak.
Of the 11 S&P sectors, seven traded in the green, led by Utilities and Healthcare. Telecom services topped the loss-making industries.
Treasury yields held steady after rising in Thursday’s session, in part due to economic data that showed a sustained decline in initial jobless claims. The 10-year yield (US10Y) fell 3 basis points to 3.82%, while the 2-year yield (US2Y) rose 2 basis points to 4.86%.
In the previous session, there was more bond selling “than usual for a change, particularly outside of Asia,” ING said. “This was a factor in unleashing higher Treasury yields. Pushing the lower unemployment claims number in the same direction, but it wasn’t enough to push the 10yr yield from 3.75% to 3.85%. Other data today was actually muted or negative for the economy.”
Inflation figures from Japan garnered attention globally and at home. Japan’s core consumer inflation remained well above the central bank’s 2% target for the 15th consecutive month, putting pressure on the Bank of Japan’s ultra-low interest rate policy. It is said that the bank is unlikely to make changes to its yield curve control program at next week’s policy meeting.
The European Central Bank (ECB) and the Federal Reserve will also hold their meetings, and both are expected to raise interest rates by 25 basis points each.
“The Fed and ECB are likely to offer a 25 basis point rate hike by the market; but the focus will be on guidance for the September meeting. Both central banks should struggle to provide strong guidance and be at the height of data reliance,” Deutsche Bank analysts said in a preliminary note on Thursday.
Analysts added: “After July, slowing inflation should allow the Fed to end the cycle of rate hikes and the market to cut rates in 2024, if only to keep real rates flat. However, a slope of strength in the US curve is likely to require evidence of weakness in the labor market.”
The economic calendar is blank today, but there may be more volatility than usual. Along with the upcoming options expiration, this is the final session for passive investors to calculate the extraordinary rebalancing of the Nasdaq 100 Index (NDX) as the weights for the Magnificent Seven megacaps will be dropped. The rebalancing occurs after the bell in time for Monday trading.
Quarterly results on Friday included reports from the credit card company and American Express (AXP), a Dow 30 constituent, oilfield services company SLB (SLB) and advertising giant Interpublic (IPG). The latter was the top loser in the S&P 500 (SP500).
Among the active investors, Trump’s SPAC Digital World Acquisition (DWAC) jumped amid a trading halt following a settlement with the US market regulator regarding his investigation of SPAC’s deal to take Donald Trump’s social media company public.