Opening Comment — Tuesday, September 10, 2024
DJIA: 40,829.59, up 484.18
S&P 500: 5,471.05, up 62.63
NASDAQ: 16,884.60, up 193.77
Stocks flat following small business optimism
Stock futures are mostly flat on Tuesday, as investors evaluate August’s small business optimism, which fell more than consensus estimates. Investors are also looking forward to August’s inflation data, with the Consumer Price Index (CPI) and Producer Price Index (PPI) due tomorrow and Wednesday, respectively. As of 7:30 AM ET, the Dow and the S&P 500 Index are both little changed. The Nasdaq 100 is falling 0.1% relative to fair value on the GLOBEX.
U.S. equities were higher on Monday, with July’s consumer credit increasing significantly more than projections, while the final reading for July’s wholesale inventories was revised downwards. The Dow was up 1.2%, while the tech-heavy Nasdaq Composite also rose 1.2%. The S&P 500 increased 1.2% with all 11 sectors finishing in positive territory. The Consumer Discretionary sector was the top performer, rising 1.6%, while the Communication Services sector was the bottom performer, ending roughly unchanged.
On the data front today, the National Federation of Independent Business (NFIB) Small Business Optimism Index fell to 91.2 in August, down from the prior month’s reading of 93.7.
Across the pond, European stocks are mixed in mid-day trading with the final reading for Germany’s August CPI remaining unchanged. Italy’s industrial production decreased more than expectations in July. The U.K.’s jobless claims decreased in August, while July data showed wage growth weakened slightly more than forecasted and the country’s unemployment rate decreased in line with consensus estimates.
Overnight in Asia, stocks were mixed with China’s trade surplus widening in August, compared to an expected narrowing. The country’s exports increased more than projections in August, while imports rose less than expectations. Australia’s business confidence and conditions decreased in August.
In FOREX trading, the dollar is slightly higher, while the Japanese yen retreated from its recent one-month highs. Investors are preparing for U.S. inflation data and are re-evaluating their expectations of a significant interest rate cut by the Federal Reserve (Fed), next week.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.8% lower at $68.13/barrel as investors balanced the impact of supply disruptions caused by Tropical Storm Francine and the possibility of additional production cuts against ongoing weak demand from China.
In the metals complex, gold is 0.1% higher at $2511.50/ounce despite a strengthening dollar.