US stocks move to new session lows as European traders look to exit

The major US stock indices are trading at session lows as European traders start to look for the exits for the week.

The NASDAQ index is now down around 1.3%. The S&P index is down -0.89%.

All the major indices are back below its 50 day moving averages after closing above those moving averages yesterday. Stay below those moving averages flips the short-term technical bias back to the downside.

A snapshot the market currently shows:

  • Dow industrial average is down -192 points or -0.55% at 34717.94. Its 50 day moving averages at 34833.65
  • S&P index is down -42 points or 0.94% at 4463.06. Its 50 day moving averages at 4482.78
  • NASDAQ index is down minus 187.49.2 -1.35% at 13737.25. It’s a 50 day moving averages at 138801.45.

For the trading week:

  • Dow industrial average is up 0.39%
  • S&P index is up 0.11%
  • NASDAQ index is now down -0.21%.

US yields still remain higher:

  • 2 year 5.026% +1.2 basis points
  • 10 year yield 4.318% +2.8 basis points
  • 30 year yield 4.403% +1.8 basis points

The US 10 year yield is moving back toward its highs for the year up at 4.362%. That high surpassed the October 2022 high at 4.335% but only by a few basis points. The 10 year yield reached 4.336% today.

Today’s data releases for the US are as follows:

  • NY Fed Manufacturing: The actual index is at 1.90, which is a significant improvement from the prior period’s -19.00, though it was expected to be -10.00.

  • Import Prices MM: The monthly import prices increased by 0.5%, surpassing the forecasted 0.3% and the previous month’s 0.4%.

  • Export Prices MM: Export prices for the month rose by 1.3%, which is higher than the expected 0.4% and the previous 0.7%.

  • Industrial Production MM: Industrial production increased by 0.4% monthly, which is higher than the expected 0.1% and the prior 1.0%.

  • Capacity Utilization SA: The capacity utilization rate is 79.7%, slightly above the forecasted 79.3% and matching the prior period’s rate.

  • Manuf Output MM: Manufacturing output for the month is at 0.1%, aligning with the forecast and slightly below the prior 0.5%.

  • Industrial Production YoY: The year-on-year industrial production is at 0.25%, a decline from the previous -0.23%.

  • U Mich Sentiment Prelim: The preliminary sentiment index from the University of Michigan is 67.7, lower than the expected 69.1 and the prior 71.2.

  • U Mich Conditions Prelim: The conditions index stands at 69.8, compared to the expected 75.3 and the prior 77.4.

  • U Mich Expectations Prelim: The expectations index is at 66.3, slightly above the forecasted 66.0 and below the prior 67.3.

  • UMich 1Yr Inf Prelim: The 1-year inflation expectation is 3.1%, down from the prior 3.3%. The 5 Yr Inf Prelim came in lower at 2.7% vs 2.9% last.

In summary, the US saw a mix of data, with some indicators like the NY Fed Manufacturing and import prices showing positive momentum, while others like the U Mich sentiment indices indicated a more cautious outlook.

This article was written by Greg Michalowski at www.forexlive.com. Source