Stocks fell Wednesday, as traders eyed commentary from Federal Reserve Chair Jerome Powell.
said Tuesday she expected unemployment to hit or top 20% domestically, and for second-quarter annualized GDP growth to be negative by as much as 40%, before a gradual economic recovery kicks off in the second half of the year.’ data-reactid=”21″>Cleveland Fed President Loretta Mester, a voter in this year’s Federal Open Market Committee (FOMC), said Tuesday she expected unemployment to hit or top 20% domestically, and for second-quarter annualized GDP growth to be negative by as much as 40%, before a gradual economic recovery kicks off in the second half of the year.
officials said Tuesday. And New York City residents are likely to remain under stay in place orders through at least June, Mayor Bill De Blasio said earlier this week.’ data-reactid=”23″>Earlier, on Tuesday, the three major U.S. equity indices ended with their largest one-day declines in seven sessions, as market participants grew wary of some states’ reopening processes, and considered other major metropolitan areas’ extended stay in place orders. Los Angeles County will likely remain under distancing orders through July, officials said Tuesday. And New York City residents are likely to remain under stay in place orders through at least June, Mayor Bill De Blasio said earlier this week.
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8:30 a.m. ET: Producer prices fall 1.2% year on year in April for the biggest drop since 2015
The Labor Department’s producer price index (PPI) declined in April over last year by 1.2%, representing the largest drop in five years. This followed a 0.7% increase in producer prices in March, and was steeper than the 0.4% decline expected, according to Bloomberg data.
Over last month, the PPI fell 1.3%, also much steeper than the 0.5% drop expected.
Excluding more volatile food and energy prices, the PPI fell 0.3% over last month in April, following a 0.2% rise in March.
7:13 a.m. ET Wednesday: Stock futures rise
Here were the main moves in markets, as of 7:13 a.m. ET Wednesday:
S&P 500 futures (ES=F): up 17.5 points, or 0.61%, to 2,870.00
Dow futures (YM=F): up 159.00 points, or 0.67%, to 23,733.00
Nasdaq futures (NQ=F): up 70 points, or 0.77%, to 9,148.25
Crude (CL=F): +$0.06 (+0.23%) to $25.84 a barrel
Gold (GC=F): +$2.20 (+0.13%) to $1,709.00 per ounce
10-year Treasury (^TNX): -2.8 bps to yield 0.664%
7:01 a.m. ET Wednesday: Mortgages for home purchases picked up again last week, signaling recovery in housing market
The Mortgage Bankers Association’s weekly purchases mortgage applications index rose 11%, seasonally adjusted, from the prior week for the period ending May 8. This extended a 3.9% gain from the prior week.
“There continues to be a stark recovery in purchase applications, as most large states saw increases in activity last week. In the ten largest states in MBA’s survey, New York – after a 9% gain two weeks ago – led the increases with a 14% jump. Illinois, Florida, Georgia, California and North Carolina also had double-digit increases last week,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.
“We expect this positive purchase trend to continue – at varying rates across the country – as states gradually loosen social distancing measures, and some of the pent-up demand for housing returns in what is typically the final weeks of the spring home buying season,” Kan added.
An index tracking refinances fell 3% from the previous week, but was still 201% higher than the same week a year ago. The Market Composite Index, which comprises volume for both refinances and purchases applications, rose 0.3% for the week ended May 8, after a 0.1% rise the prior week.
6:07 p.m. ET Tuesday: Stock futures fall
Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:07 p.m. ET:
S&P 500 futures (ES=F): down 8.5 points, or 0.3%, to 2,844.00
Dow futures (YM=F): down 44 points, or 0.19%, to 23,530.00
Nasdaq futures (NQ=F): down 19.75 points, or 0.22%, to 9,058.5
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