Opening Comment — Wednesday, April 24, 2024
DJIA: 38,503.69, up 263.71
S&P 500: 5,070.55, up 59.95
NASDAQ: 15,696.64, up 245.33
Stocks higher ahead of durable goods data
Stock futures are higher on Wednesday, as investors await the preliminary release of March’s durable goods orders and look forward to the latest earnings releases. The Dow is little changed, while the S&P 500 is increasing 0.2%. The Nasdaq 100 is up 0.6% relative to fair value on the GLOBEX.
U.S. equities were higher on Tuesday, with March’s new home sales increasing more than projections, while the preliminary releases for April’s Purchasing Managers’ Indexes (PMIs) for both the manufacturing and services sectors showed unexpected decreases. The Dow was up 0.7%, while the tech-heavy Nasdaq Composite rose 1.6%. The S&P 500 increased 1.2% with 10 of 11 sectors finishing in positive territory. The Communication Services sector gained the most, rising 1.9%.
On the data front today, Mortgage Bankers Association (MBA) mortgage applications decreased 2.7% for the week ending April 19 versus the prior week’s increase of 3.3%. The preliminary release of March’s durable goods orders are projected to increase 2.5%, more than the prior month’s 1.3%. Department of Energy (DOE) crude oil inventories are anticipated to increase by 2.0 million barrels for the week ending April 19 versus the prior week’s increase of 2.7 million barrels.
Across the pond, European stocks are higher in mid-day trading despite Italy’s consumer and manufacturing confidence decreasing in April, compared to anticipated increases. Ifo’s reading of Germany’s business climate increased more than forecasted.
Overnight in Asia, stocks were higher with Australia’s first-quarter Consumer Price Index (CPI) increasing slightly more than projections on both annual and quarterly basis. Hong Kong’s CPI Composite for March increased slightly less than expectations.
In FOREX trading, the dollar is higher ahead of the first quarter’s Gross Domestic Product (GDP) and March’s Personal Consumption Expenditures (PCE) deflator data, scheduled for tomorrow and Friday, respectively.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.6% lower at $82.87/barrel, following expectations of an increase in U.S. crude oil inventories.
In the metals complex, gold is 0.5% lower at $2315.90/ounce following a strengthening dollar.