CNBC Daily Open: Could better data be a good thing for markets?

Traders work on the ground of the New York Stock Exchange throughout afternoon buying and selling on January 17, 2024 in New York City. 

Michael M. Santiago | Getty Images News | Getty Images

This report is from as we speak’s CNBC Daily Open, our new, worldwide markets publication. CNBC Daily Open brings buyers up to the mark on every thing they should know, irrespective of the place they’re. Like what you see? You can subscribe here.

What you might want to know as we speak

Dow falls three days
The blue-chip
Dow Jones Industrial Average fell for the third straight day Wednesday. Wall Street’s different two important indexes additionally dropped as better-than-expected retail gross sales data helped raise Treasury yields. In Asia, China stocks hit five-year lows, whereas Hong Kong shares rebounded. Sectoral declines have been led by mining shares.

Strong retail gross sales
U.S. retail sales got here in increased than anticipated for the final month of 2023 in a signal that vacation buying picked up. Retail gross sales for December elevated 0.6% vs. the 0.4% rise anticipated in a Dow Jones estimate. The rise was pushed by clothes, equipment and on-line buying.

Dimon in Davos
JPMorgan Chase CEO Jamie Dimon was one of many extra extremely anticipated visitors on the World Economic Forum in Davos, Switzerland. Dimon mentioned a variety of topics starting from monetary to geopolitical dangers. He was also seen praising former U.S. President Donald Trump’s stance on the U.S. economic system, immigration and taxes.

Singapore minister face corruption expenses 
Singapore Transport Minister S Iswaran resigned as he faces corruption charges, the primary for a cupboard minister in the island nation. He pleaded not responsible to 24 expenses of acquiring gratification as a public servant, two expenses of corruption and one cost of obstructing the course of justice.

[PRO] Citi says put money into the subsequent AI growth
Citi says it’s positively “not too late” for investors to put money into the “exponential progress” of AI know-how. And after Nvidia sparked the AI growth, hovering over 200% final yr, the funding financial institution now names its high performs for 2024. 

The backside line

It’s solely the third week of the brand new yr and markets are slowly heading into a cycle of good data being acquired as unhealthy information — a minimum of from an fairness standpoint.

Treasury yields, nevertheless, have risen this week boosted by feedback from Federal Reserve Governor Christopher Waller on Tuesday. The yield on the benchmark 10-year Treasury word continued to commerce increased Wednesday, crossing the 4% mark on the again of better-than-expected U.S. retail gross sales for December.

The data confirmed American shoppers considerably loosened their purse strings within the final month of 2023. But for Wall Street, that was hardly any motive to have fun based mostly on how aggressively markets have been pricing in rate of interest cuts by the Federal Reserve.

Waller’s feedback on Tuesday at Davos concerning the U.S. central financial institution taking its time to chop charges this yr, got here as a sharp distinction to markets anticipating the Fed’s first fee minimize of 2024 to come back as early as March.

“The Fed was already hammering away on its ‘no rush to chop charges’ message, and as we speak’s stronger-than-expected retail gross sales will not give them any motive to vary their tune,” stated Chris Larkin, managing director of buying and selling and investing for E-Trade from Morgan Stanley.

About 55% of merchants tracked by the CME Group’s FedWatch tool count on a 25 foundation level fee minimize in March, falling from 63% a day earlier.

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