Wednesday's Market Recap - Stock Shook Off Week December Retail Sales, And Hot CPI, To Close Hig
What is The Premarket Telling Us?
7:00 AM.
US stock futures are pointing significantly higher, indicating a strong opening. Dow futures up 123 points, Nasdaq futures up 29.50 points, and the S&P futures up 10.75 points. However after the 8:30 AM release of January CPI data, the futures immediately reversed, with the Dow futures down 346 points, Nasdaq futures down 104 points, S&P futures down 33 points. The data showed CPI rose 0.50% vs 0.30% estimated. Investors fear that inflation could become a problem, forcing the Fed to hike rates more rapidly than they otherwise would.
On The Bond Desk:
The US 10 year bond yield at: 2.84% , down 0.02% or two basis points
Currency Desk:
Euro dollar at 1.23
UK Pound at 1.38
Crude Oil:
WTI crude oil futures at $58.77 /barrel, down 0.71%
On the Earnings Calendar:
Dr Pepper/Snapple reported Q4 Earnings results. The company met sales expectation, but missed earnings expectation.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) down 0.43%, Shanghai up 0.45%, Hong Kong (Hang Seng) up 2.27%.
European markets were higher. Germany (DAX) rose 1.17%, France CAC up 40 1.10%, London FTSE 100 up 0.64%.
Market And Sector Dynamics
Stock opened the trading day lower. The Dow fell 120 points, Nasdaq lost 27 points, and the S&P down 9 points. Before the markets opened, the futures were indicating a positive opening, until the release of the January CPI data, which was released at 8:30 AM.
Stock rebound, shortly after the open, and hugged the flat line until midday, as investors tried to digest, a decline in December retail sales, a January CPI number that was hotter than expected, which caused a spike in the US 10 year bond yield.
Markets gained some traction, early in the afternoon session, and climbed higher, closing near the high of the session.
Despite the selloff at the open, markets were orderly. Nine of the eleven S&P sectors ended the day higher, led by basic materials, consumer goods, technology, financials, energy, and industrials.
Factors Influencing Today's Market
Hotter than expected CPI number, which increase 0.50% vs 0.30% anticipated.
December retail sales came in weaker than expected.
US 10 year bond yield spiked up to 2.9% today but pulled back from the high intraday. Today's range 2.82% - 2.91%.
The VIX also moderated intraday, closing at 19.26.
Crude oil prices rose in today's session. WTI crude oil price close at $60.82/barrel, up 2.70%.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading today, the Dow gained 253.04 points, Nasdaq gained 130.10 points, and the S&P rose 35.69 points. Total NYSE volume traded, 3.86 billion shares. Advancing shares outpaced Declining shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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