Stock Market News Today, 6/20/23 – Futures Down at the Start of a Short Trading Week

Last updated: 11:30AM EST

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Stocks are in the red so far in today’s trading as the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.6%, 0.8%, and 0.9%, respectively.

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Last updated: 9:30AM EST

After the Juneteenth holiday, stock markets opened lower on Tuesday, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) down 0.11%, 0.34%, and 0.51%, respectively, at 9:30 a.m., EST, June 20.

Meanwhile, the housing starts and building permits data indicated that construction on new homes rose 21.7% in May as builders ramped up the construction of single-family homes to meet strong demand from buyers. Housing permits for single-family homes increased by 5.2% in May, while permits in buildings with five units or more went up by 7.8%.

Housing starts went up for the second consecutive month to 1.63 million at an annual pace in May from 1.34 million in April, while economists were expecting a slight decline of 0.8%.

First published: 2:24AM EST

U.S. Futures are down this morning as markets brace to begin the short trading week today. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.36%, 0.33%, and 0.45%, respectively, at 1:40 a.m., EST, June 20.

The three major indices finished the trading week ending June 16 on a positive footing. Traders seem to have moved past the Fed’s interest rate pause last week and the expected hikes in the future. Even so, all eyes will be on Fed Chair Jerome Powell’s testimony before Congress tomorrow, June 21, to see if he gives any more cues for the future.

Moreover, several Fed Presidents will speak during the week, and markets will be attentive to hear their tones to gauge the direction of July’s monetary policy, which Powell said is currently undecided. New York Fed President John Williams and Fed Vice Chair for Supervision Michael Barr will speak today.

Meanwhile, shipping giant FedEx (NYSE:FDX) will report its fourth-quarter financial results for Fiscal 2023 today after the market close. Elsewhere, Chinese e-commerce giant Alibaba (NYSE:BABA) announced top management shake-up plans, with current CEO Daniel Zhang stepping down to turn his full focus on the spin-off and eventual listing of Alibaba Cloud Intelligence Group as part of the larger reorganization effort.

On the economic front, Weekly Initial Jobless Claims, May’s Existing Home Sales data, and June’s S&P Global Manufacturing and Services PMI figures will be released later in the week.

European indices are trading marginally below the flatline as traders mull over the uncertainty of the macroeconomic backdrop worldwide.

Asia-Pacific Markets Trending Lower on Tuesday

Most Asia-Pacific indices finished lower today as the People’s Bank of China cut the prime lending rates by ten basis points each on its one-year and five-year loans. The steps suggest that China’s economy is heading for a stark slowdown, and the central bank is trying to pump liquidity to revive the economy.

Hong Kong’s Hang Seng index and China’s Shanghai Composite indices are trading in the red, down by 1.85% and 0.52%, respectively, while the Shenzhen Component index was up 0.19% at the time of the last check.

Meanwhile, Japanese stocks seem to be the new attraction for investors. Yesterday, billionaire investor Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) disclosed additional stakes in five of the largest Japanese trading firms, namely Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Buffett’s optimism for Japan is boosting investor confidence in the country’s businesses. Japan’s Nikkei and Topix indices are trading down by 0.09% and 0.40%, respectively, as of the last check.

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