Thursday, June 20, 2024

Nasdaq, S&P, Dow are mixed as markets return from a long weekend

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The major market averages were mixed on Tuesday, as investors await the key inflation data expected at the end of the shortened trading week.

Early on and the S&P 500 (SP500) was +0.1%, the Nasdaq Composite (COMP:IND) was +0.4% and the Dow (DJI) was -0.3%.

The 10-year Treasury yield (US10Y) was down 2 basis points to 4.44%. The 2-year yield (US2Y) was lower by 4 basis points to 4.90%. See how Treasury yields have done across the curve at the Seeking Alpha bond page.

U.S. stocks on Friday ended largely higher, with the S&P 500 just about managing to post a five-week win streak, after having stalled over the past two days following a string of record highs.

Investors are also coming off a three-day-long weekend on the account of Memorial Day holiday on Monday, and will now keenly wait for the April PCE Price index expected to land on Friday.

On the economic front, the March House Price Index arrived, which showed home prices increase at a slower pace in March versus February. Data came in at +0.3% M/M compared to the previous month’s +0.6% figure.

The May Consumer Confidence report is slated to land during market hours, and is forecasted to drop to 96.

“The U.S. is offering evidence of political partisanship rather than price pressures. The Conference Board consumer confidence poll does not distinguish between Republicans and Democrats, but political polarization is bound to affect the results,” UBS’s Paul Donovan said.

“Weakening consumer confidence can be added to the list of reasons to expect growth in real consumption to slow soon,” Pantheon Macroeconomics said.

Fading rate cut hopes and rising layoff fears hit confidence hard in May, Pantheon Macroeconomics added.

The Dallas Fed Manufacturing Business Index will also be released shortly.

“The Dallas Fed manufacturing sentiment poll publishes very subjective comments from supposedly objective respondents,” Donovan added.

Results of $69B, 2-year Note Auction and results of $70B, 5-year Note Auction, are also expected later in the day.

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