Stocks finished mixed Thursday, with the Dow barely squeaking into the green, while the S&P 500 and the Nasdaq posted their fifth straight losing day.
The Dow Jones Industrial Average edged up 22 points, or 0.06%, to 3,775.38, while the S&P 500 slipped 0.22% to 5,011.12 and the tech-heavy Nasdaq list 0.52% to 15,601.50.
The Nasdaq has fall more than 3% this week as the tech sector has run into headwinds.
Updated at 12:03 PM EDT
Higher, but no hurry
The S&P 500 is trading just off the highs of the day heading into the middle of the session and was last marked 24 points, or 0.49% into the green. The Dow was last seen 235 points higher, paced by UnitedHealth (UNH) and Travelers (TRV) , while the Nasdaq was up 71 points, or 0.45%.
Treasury yields are steady, as well, with 2-year notes pegged at 4.978% and 10-year notes at 4.639% following comments from New York Fed President John Williams that indicated he feels "no urgency to cut interest rates" given the strength of the economy.
The U.S. dollar index, which tracks the greenback against a basket of its global currency peers, was marked 0.1% higher at 106.046.
"We have a strong economy, we want a strong economy, that's all very good news ... But it also means that the rates that we have haven't caused the economy to slow too much," Williams said during an economic event in Washington.
Fed's Williams: Don't Feel Urgency to Cut Rates
— Markets Today (@marketsday) April 18, 2024
"Eventually Interest Rates will need to be lower."
"Rate Cuts will Be determined by economic activity."
"Rate 'HIKE' are not my Baseline forecast."
Updated at 10:33 AM EDT
Netflix and ads ...
Netflix shares edged higher in early trading, extending their year-to-date gain to around 30%, ahead of the streaming giant's first quarter earnings slated for after the closing bell.
Analysts are likely to key on the group's expanding profit margins, thanks in part to its growing ad-tier base, as well as any planned price hikes for the coming year. Netflix likely added 5.1 million new subscribers over the quarter, as well, taking its overall total to around 266 million.
Related: Analysts reset Netflix price targets ahead of earnings amid ad-tier push
Updated at 9:50 AM EDT
Flat open
The S&P 500 opened with a bit of a whimper, rising 2 points, or 0.03%, in the opening minutes of trading following the stronger-than-expected Philly Fed index and another solid round of jobs data.
Benchmark 10-year notes added 4 basis points from earlier levels to trade at 4.622% while 2-year notes rose 3 basis points to 4.980%.
"No signs yet of loosening in the tight labor market. Along with stronger-than-expected retail sales and industrial production, most of the data this week shows the economy is still firing on all cylinders," said Chris Larkin, managing director for trading and investing at E*Trade from Morgan Stanley.
"That’s going to be a challenge for the Fed’s rate-cutting plans, and it could continue to weigh on the stock market rally, especially with bond yields pushing to their highest levels in several month," he added.
S&P 500 Opening Bell Heatmap (April 18, 2024)$SPY +0.10% 🟩$QQQ -0.08% 🟥$DJI +0.32% 🟩$IWM +0.09% 🟩 pic.twitter.com/bgGIQ4pEqL
— Wall St Engine (@wallstengine) April 18, 2024
Updated at 8:37 AM EDT
Workin' for a livin'
Weekly jobless claims figures held steady last week, with 212,000 people filing new applications for unemployment benefits, leaving the four-week average unchanged at 214,500, Labor Department data indicated.
The Philadelphia Fed's April business conditions index, meanwhile, jumped to the highest since the spring of 2022, although the prices paid component also remained elevated.
Strong 💪 US data to start the trading day:
— Matt Weller CFA, CMT (@MWellerFX) April 18, 2024
🔷Philly Fed came in at 15.5 vs. 1.5 expected
🔷Initial jobless claims were 212K vs. 215K eyed
Stock Market Today
Stocks ended lower again Wednesday, with the S&P 500 extending its second quarter decline to around 4.4%, as investors eyed sharp moves higher in Treasury bond yields tied to a hotter inflation outlook while closely tracking developments in the simmering military conflict between Israel and Iran.
Treasury yields began to ease in the afternoon session, however, following a stronger-than-expected auction of $13 billion in 20-year bonds that drew solid interest from foreign investors attracted to the higher risk-free yields.
Benchmark 10-year notes were marked 2 basis points lower from late Wednesday levels at 4.571% heading into the start of the New York trading session, with 2-year notes pegged at 4.925%.
The U.S. dollar index, which tracks the greenback against a basket of its global currency peers, was marked 0.09% lower at 105.854, providing firm support for other major pairings in foreign exchange markets.
On Wall Street, chip and technology stocks are likely to pace today's advance following a robust near-term outlook from Taiwan Semiconductor (TSM) , the world's biggest contract chipmaker, and reports of a $6 billion contract from the Commerce Department to Micron Technology (MU) .
Nvidia (NVDA) , Advanced Micro Devices (AMD) and Micron were all around the top gainers in premarket trading while Tesla (TSLA) extended its near 40% year-to-date slump.
Investors will also focus on today's weekly jobless claims data from the Labor Department, as well as a reading of economic activity in the mid-Atlantic region published by the Philadelphia Federal Reserve.
The Fed's new rate messaging, meanwhile, has pushed back bets on a near-term interest rate cut until at least September, and possibly beyond, while putting the remarks of various central bank officials firmly in the spotlight.
Related: No landing, no Fed rate cuts: the markets' new bet on 2024
New York Fed President John Williams and Atlanta Fed President Raphael are due to make public comments later today.
Netflix (NFLX) is also slated to publish its first-quarter earnings update after the close of trading, with analysts expecting the streaming service giant to post a bottom line of $4.52 a share on revenue of $9.28 billion.
Heading into the start of the trading day, futures contacts tied to the S&P are indicating an 11 point opening bell gain, while those linked to the Dow Jones Industrial Average suggest a 74 point advance.
Chip stocks will support a 60 point opening bell gain for the tech-focused Nasdaq, which is down 4.25% since the start of the month.
More Wall Street Analysts:
- Analyst unveils new Nike price target ahead of big summer for sports
- Analysts weigh in on Google-parent Alphabet’s stock after cloud event
- Analysts revamp Disney stock price target after proxy fight
In overseas markets, Europe's Stoxx 600 was marked 0.14% higher in early Frankfurt trading, with Britain's FTSE 100 rising 0.23% in London.
Overnight in Asia, Japan's Nikkei 225 snapped a three-day losing streak to rise 0.31% and close at 38,079.70 points amid increasing speculation of an intervention by government officials to strengthen the yen.
The regionwide MSCI ex-Japan benchmark rose 0.7% into the close of trading, powered by solid gains in South Korea and Hong Kong and a mixed session on the Chinese mainland.
Related: Veteran fund manager picks favorite stocks for 2024
