Traders and investors watched Wall Street’s major market averages conclude in a more muted fashion on Thursday after markets received a slew of economic data in the early part of the day.
The tech focused Nasdaq Composite (COMP.IND) ended higher by 0.3% and closed out at 17,858.68. At the same time, the benchmark S&P 500 (SP500) finished the day near flat at 5,482.93. Lastly, the blue chip Dow (DJI) concluded near even as well as it finished Thursday at 39,164.06.
From a sector point of view, six of the 11 S&P segments were able to make gains, with Real Estate and Consumer Discretionary ending at the top of the leaderboard. In reverse, the worst performing sector on the session was Consumer Staples.
Treasury yields observed a downward shift. The shorter end U.S. 2 Year Treasury yield (US2Y) declined by 3 basis points to 4.71%. At the same time, the longer end U.S. 10 Year Treasury yield (US10Y) moved lower by 4 basis points to 4.28%.
See how other yields trade across the entire yield curve here.
“It was a quiet trading session one day before the May PCE report. Traders seem to be content with waiting until they see the data tomorrow before making any decisions on the markets next big move,” Michael Kramer, investing group leader of Mott Capital Management, told Seeking Alpha.
On the economic front, U.S. gross domestic product in the U.S. Department of Commerce’s final Q1 estimate rose at an annual rate of 1.4%, slightly higher than the second estimate of 1.3%, but lower than Q4 2023’s strong print of 3.4%.
Jobless claims declined for the second month as claims fell 6K to 233K. At the same time, retail inventories moved up 0.7% in May, and the U.S. international trade deficit widened more than expected in May.
Durable goods orders also edged up in May. Durable goods orders rose 0.1% M/M in May, which was better than what was expected by forecasters.
Markets are also bracing for the personal-consumption expenditures data due on Friday. Core PCE is the Federal Reserve’s preferred inflation gauge.
The Federal Reserve appears on course to cut interest rates once in 2024 as inflation appears on the path of slowly descending, Atlanta Fed President Raphael Bostic said Thursday.
“Taking all the circumstances into account, I continue to believe conditions will likely call for a cut in the federal funds rate in the fourth quarter of this year,” he said in a written statement.
As for stocks that were on the move, shares of Walgreens Boots Alliance (WBA) plummeted by 22.1% after reporting mixed FQ3 results and lowering its FY2024 EPS outlook due to a tough overall backdrop for retail.
Micron Technologies (MU) also ended in the red by 7.1%, despite the company’s upbeat FQ3 results, which were overshadowed by the FQ4 outlook that was in line with estimates.