26 Oct 2023 Market Close & Major Financial Headlines: Wall Street Three Main Indexes Opened Mixed, S&P 500 Slides More Than 1% Into Correction Territory, U.S. GDP Grew 2.9% Year-over-Year in the Third Quarter, Markets Close Sharply Down
Summary Of the Markets Today:
- The Dow closed down 252 points or 0.76%,
- Nasdaq closed down 1.76%,
- S&P 500 closed down 1.18%, (Low 4,128: 4,200 = critical support level)
- Gold $1,994 down $0.50,
- WTI crude oil settled at $83 down $2.03,
- 10-year U.S. Treasury 4.851% down 0.104 points,
- USD Index $106.67 up $0.140,
- Bitcoin $34,060 down $727,
*Stock data, cryptocurrency, and commodity prices at the market closing.
Click here to read our Economic Forecast for October 2023
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
CoreLogic released its monthly Loan Performance Insights Report for August 2023 showing that 2.6% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 0.2 percentage point decrease compared with 2.8% in August 2022 and a 0.1 percentage point decrease from July 2023. Molly Boesel, principal economist at CoreLogic added:
U.S. mortgage performance remained strong in August, supported by a robust job market and a healthy economy. However, this thriving job market comes at a time when interest rates are quickly rising, which is keeping many potential homebuyers from being able to secure a mortgage.
The advance estimate of 3Q2023 Real gross domestic product (GDP) increased at an annual rate of 4.9 percent In the second quarter, real GDP increased 2.1 percent. This is a quarter-over-quarter analysis that is intended to show an exaggerated view of economic acceleration. We analyze real GDP on a year-over-year basis to get a clearer view of growth – and it shows the real economy grew at 2.9% year-over-year – up from last quarter’s 2.4%. The economy is expanding which is good news. The increase in real GDP reflected increases in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, and residential fixed investment which were partly offset by a decrease in nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased. The implicit price deflator which shows inflation in GDP modestly declined to 3.2% from last quarter’s 3.5% (red line on the graph below).
Inflation adjusted new orders for manufactured durable goods in September 2023 increased to 1.0% year-over-year growth from -3.5% in August. This entire increase came from civilian aircraft which makes durable goods a weak sector if one ignores aircraft.
In the week ending October 21, the advance figure for seasonally adjusted initial unemployment claims 4-week moving average was 207,500, an increase of 1,250 from the previous week’s revised average. The previous week’s average was revised up by 500 from 205,750 to 206,250.
Pending home sales declined 11.0% year-over-year in September 2023, with pending contracts remaining at historically low levels due to the highest mortgage rates in 20 years. Lawrence Yun, NAR chief economist noted:
Furthermore, inventory remains tight, which hinders [existing home} sales but keeps home prices elevated. Because of homebuilders’ ability to create more inventory, new-home sales could be higher this year despite increasing mortgage rates. This underscores the importance of increased inventory in helping to get the overall housing market moving.
The Kansas City Fed’s manufacturing activity continued to decline in October 2023, and expectations for future activity stayed mostly flat. The month-over-month composite index was -8 in October, unchanged from September and down from 0 in August.
Here is a summary of headlines we are reading today:
- Plastic Waste Becomes Clean Hydrogen Goldmine
- Warren Buffett Snaps Up More Occidental Petroleum
- American Small Reactor Development Suffers From Short Sellers
- Volkswagen’s Q3 Earnings Slump Amid Supply Chain Woes
- Siemens Energy Shares Crash 37% As It Reports Wind Turbine Quality Issues
- Higher Refining Output Lifts Sinopec’s Profit By
- Nasdaq tumbles 1.7% Thursday, descending further into correction territory: Live updates
- Bitcoin mining stocks are rallying, but some are poised for a fall if the cryptocurrency hits this key level
- U.S. GDP grew at a 4.9% annual pace in the third quarter, better than expected
- Futures Movers: Oil prices settle at lowest in 2 weeks as volatility tied to Middle East risks prevails
- Earnings Results: Hasbro’s stock is having its worst month since the 1980s as toys sales tumble
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.
