Opening Comment — Tuesday, April 30, 2024
DJIA: 38,386.09, up 146.43
S&P 500: 5,116.17, up 16.21
NASDAQ: 15,983.08, up 55.18
Stocks lower, set for first down month in six
Stock futures are lower on Tuesday, as investors look forward to the Federal Open Market Committee’s (FOMC’s) meeting, which is scheduled to begin today. The first quarter’s employment cost index, April’s consumer confidence, and February’s house price index data are also scheduled to be released today. The Dow and the S&P 500 are both down 0.1%. The Nasdaq 100 is also decreasing 0.1% relative to fair value on the GLOBEX.
U.S. equities were higher on Monday, as investors evaluated the latest earnings releases and looked forward to key economic releases, including April’s jobs reports, scheduled for this week. The Dow was up 0.4%, while the tech-heavy Nasdaq Composite also rose 0.4%. The S&P 500 increased 0.3% with nine of 11 sectors finishing in positive territory. The Consumer Discretionary sector gained the most, rising 2.0%.
On the data front today, February’s Federal Housing Finance Agency’s (FHFA) House Price Index is expected to increase 0.2% month-over-month (MoM), versus the prior month’s decrease of 0.1%. The S&P CoreLogic Case-Shiller 20-City Composite Home Price Index is projected to increase 6.70% year-over-year and 0.10% MoM for February versus the prior month’s increases of 6.59% and 0.14%, respectively. The Conference Board Consumer Confidence Index is expected to register 104.0 in April, slightly down from the prior month’s 104.7. The Employment Cost Index is expected to increase 1.0% for the first quarter versus the prior quarter’s increase of 0.9%. The Market News International (MNI) Chicago Purchasing Managers’ Index (PMI) is expected to register 45.0 for April, higher than the prior month’s 41.4.
Across the pond, European stocks are mostly lower in mid-day trading with the initial reading for the eurozone’s first quarter Gross Domestic Product (GDP) increasing more than consensus estimates, while April’s headline eurozone Consumer Price Index (CPI) increased in line with projections.
Overnight in Asia, stocks were mixed following China’s manufacturing Purchasing Managers’ Index (PMI) for April coming in slightly higher than projections, while the country’s non-manufacturing PMI decreased more than expected. Australia’s retails sales unexpectedly decreased in March. Japan’s retail sales decreased more than expectations in March, while the country’s jobless rate was unchanged in March compared to an anticipated decrease. South Korea’s industrial production decreased significantly in March.
In FOREX trading, the dollar is slightly higher ahead of the two-day FOMC meeting, commencing today.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.3% higher at $82.86/barrel, despite easing concerns about an escalation of tensions in the Middle east due to ceasefire talks between Israel and Hamas in Cairo.
In the metals complex, gold is 1.3% lower at $2328.20/ounce following a strengthening dollar.