Last Updated at 12:25PM EST
Stock indices remain mixed halfway into today’s trading session. As of 12:25 p.m. EST, the S&P 500 and the Nasdaq 100 are down 0.1% and 0.3%, respectively. On the other hand, the Dow Jone Industrial Average is up 0.2%.
In addition, WTI crude oil continues to slide today, as it hovers around the high-$85 per barrel range. The commodity’s overall downtrend has caused prices at the pump to decline when compared to last week.
Indeed, the national average for regular gas was last $3.773 per gallon, down from last week’s reading of $3.804. This is significantly lower than the all-time high of $5.016 per gallon on June 14.
The highest prices can be found in California, where prices are substantially higher than the national average, at $5.433 per gallon. On the other hand, Texas is the state with the lowest gas prices, at $3.11 per gallon.
It’ll be interesting to see if this downward trend will continue going forward as the Federal Reserve looks to raise interest rates to fight inflation while oil producers lower production in order to maintain the price.
Stocks Fall as Bond Yields Rise
Last Updated 10:00AM EST
Stock indices are mixed 30 minutes into today’s trading session. As of 10:00 a.m. EST, the S&P 500 and the Nasdaq 100 are down 0.2%, and 0.7%, respectively. On the other hand, the Dow Jones Industrial Average is slightly up by 0.1%.
The real estate sector (XLRE) is the laggard so far, as it is down 0.9%. Conversely, the energy sector (XLE) is the session’s leader with a gain of 0.9%.
WTI crude oil remains below $90 per barrel as investors weigh the impact of a softening outlook that’s being caused by recession fears. Indeed, OPEC once again lowered its forecast for oil demand, pointing to climbing interest rates and high inflation as the catalysts.
Meanwhile, bond yields are higher to start the day, as the U.S. 10-Year Treasury yield is now hovering around 3.88%. This represents an increase of more than two basis points from the previous close.
Similar movements can be seen with the Two-Year yield, which is now at 4.43%. However, the spread between the 10-Year and Two-Year U.S. Treasury yields is still negative, as it currently sits at -55 basis points.
Futures Decline Amid Close Elections, Lower CPI
First Published 6:23AM EST
Stock futures moved lower early Monday morning as the dramatic improvement in investor sentiments eased, following a cooler-than-expected inflation reading.
Futures on the Dow Jones Industrial Average (DJIA) lost 0.26%, while those on the S&P 500 (SPX) tumbled 0.39%, as of 6.18 a.m. EST, Monday. Meanwhile, the Nasdaq 100 (NDX) futures dipped 0.69%.
Inflation for October came at 7.7% which was below the estimated rate of 7.9%, leading to an inflation relief rally. The bet is that the Federal Reserve might soon slow down its aggressive interest hiking campaign.
Last week, the S&P 500 climbed 5.9%, clinching its best week since June. Being the most sensitive to interest rates, the tech sector saw investors flocking in, leading to the tech-heavy Nasdaq Composite gaining a remarkable 8.1% last week. Meanwhile, the Dow ended the week 4.2% higher.
The elections are also playing a key role in influencing investor sentiments. The latest is that the Democratic party will retain its control of the Senate after a key win in Nevada, regardless of the outcome of the December 6 runoff election in Georgia. Meanwhile, the Republicans are largely expected to hold the reins of the House, albeit with a slim majority.
Recently, nonbiased analysts have been more tilted toward Republican control of the Senate as well as the House, which would have given the GOP more power to reverse some of the laws passed by President Biden and quickly pass key bills to raise the debt ceiling.
On the earnings front, major retailers are expected to report this week, including Tyson Foods (NYSE:TSN), Walmart (NYSE:WMT), Home Depot (NYSE:HD), Target (NYSE:TGT), Lowe’s (NYSE:LOW), Macy’s (NYSE:M), TJX Companies (NYSE:TJX), and Kohl’s (NYSE:KSS). Numbers posted by these retailers will help investors understand where, what, and how much consumers are shopping with lesser disposable income due to inflation.
The Producer Price Index reading for October is due out on Tuesday, giving us a better look into the economic situation.
Read More: Stock Market Today – Indices See Choppy Trading; Gasoline Prices Fall