Wednesday's Market Update (November 22, 2023)

23 Nov 2023 by rate3

On Wednesday, Durable goods orders signaled an economic slowdown by declining more than expected, yet jobless claims were lower than forecast. Nasdaq and other major stock indexes closed higher as traders digested this mixed economic data. This increase was driven by gains in tech, communication, and consumer stocks. Microsoft hit a record high, again, while Nvidia fell on poor results. BTC and ETH were, also, on the rise, with Ether leading the charge.

Details

New orders for manufactured durable goods fell sharply by 5.4% in October 2023 compared to the previous month, reversing a 4.0% increase in September and falling well short of market expectations. This was the second-largest monthly drop in durable goods orders since April 2020, driven primarily by significantly reduced demand for transportation equipment, especially civilian aircraft and vehicles. There were also declines in orders for primary metals, electrical equipment, and other capital goods, signaling decreasing business investment.

The number of unemployment claims dropped sharply last week to 209K after hitting a three-month high the previous week, falling well below market forecasts. Meanwhile, ongoing claims also declined from a two-year peak. This suggests the feared labor market slowdown has not fully happened yet, giving the Federal Reserve leeway to sustain high interest rates. When smoothing out weekly volatility, claims are also down over the last month. However, on a non-seasonally adjusted basis, unemployment filings actually rose last week, with significant increases in California, Oregon and Kentucky.