Wednesday's Market Recap - Stocks Rallied As CPI Came In Less Than Expected Calming Inflation Fears.
- cashtonsaunders
- Sep 14, 2021
- 2 min read
What is The Premarket Telling Us?
Equity futures are mildly positive at this hour. Dow futures were up 4 points, Nasdaq futures 32 points, and S&P futures up 5 points. Asian markets ended lower today.
On The Bond Desk:
The US 10 Year Bond Yield at 1.27%, down 0.9 basis points.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.38
Crude Oil:
WTI crude oil futures $71.68/barrel, up 1.73%.
On the Earnings Calendar:
None to report
In M&A News:
Canadian National Railway has decided not to sweeten its bid for Kansas City Southern, paving the way for Canadian Pacific Railway, to acquire Kansas City Southern.
What About The Asian And European Markets?
Major Asian markets ended with losses. Japan (Nikkei 225) down 0.52%, Shanghai down 0.17%, Hong Kong (Hang Seng) fell 1.84%.
Major European markets ended lower. German (DAX) lost 0.68%, France CAC 40 down1.04%, London FTSE 100 down 0.25%.
Market And Sector Dynamics
Markets got off to a mostly flat start, with the Dow down 29 points, Nasdaq up 29 points, and the S&P up 7 points. WTI crude oil trended higher at $72.37/barrel up 1.81%, while the US 10 Year remained subdued at the 1.285% level.
Stocks turned positive intraday taking its cue from yesterday's release of August Consumer Price Index (CPI) read, that came in lower than expected, suggesting inflation fears may be overblown, which bolsters the Fed's position that existing inflation was transitory.
Today's session was mostly positive, with ten of the eleven S&P sector ending the session with gains, led by Energy, Basic Materials, Financials, Technology, Communication Services, Healthcare, Consumer Discretionary, Real Estate, and Consumer Staples. Utilities finished mildly lower.
Factors Influencing Today's Market
August CPI came in at 0.30% vs 0.4% expected, and less than 0.5% reported for July.
US 10 Year Bond closed today at 1.305%, up 1.58%
WTI crude oil ended higher today at $72.61/barrel, up 3.05%.
Both Asian and European markets closed lower in their session.
This week's EIA Petroleum Status Report shows US crude inventory fell -6.4 million barrels vs last week's draw of -1.5 million barrels.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading the markets were higher. The Dow gained 236.82 points, Nasdaq gained 123.77 points, and S&P gained 37.65 points. Total NYSE volume traded, a a light 4.05 billion shares. Advancing shares outpace Declining shares by 2.28:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments