Wednesday's Market Recap - Strong Rise In April CPI Triggers Sharp Stock Declines.
- May 12, 2021
- 2 min read
What is The Premarket Telling Us?
May 12, 2021 8:16 AM.
US stock futures are negative again this morning, continuing the trend of the last two mornings. Dow futures down 86 points, Nasdaq futures down 50 points, and S&P futures down 11 points. Asian markets ended their day mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 1.624%, up 0.022%.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.41
Crude Oil:
WTI crude oil futures at $66.15/barrel, up 1.22%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended lower. Japan (Nikkei 225) lost 1.61%, Shanghai up 0.61%, Hong Kong (Hang Seng) up 0.78%
Major European markets closed higher. German (DAX) rose 0.20%, France CAC 40 up 0.19%, London FTSE 100 gained 0.82%.
Market And Sector Dynamics
Markets opened convincingly lower, with the Dow slumping 138 points, Nasdaq sank 152 points, and the S&P fell 28 points. WTI crude oil rose modestly to $66.73/barrel, up 0.70%, and the US 10 Year Bond ticked up to 1.661%, up 2.28%. A strong CPI release fueled inflation fears which was already gripping the markets.
Markets declined steadily as the session progressed, with the indexes finishing the the day at their intraday lows. Stocks remained negative for the entire session, in a broad-based sell off.
Ten of the eleven S&P sectors recorded sharp losses in today's trading, led by Consumer Discretionary, Technology, Basic Materials, Industrials, Real Estate, Utilities, Communication Services, Consumer Staples, Financials, and Healthcare. Energy was mildly higher.
Factors Influencing Today's Market
A very hot read on April Consumer Price Index (CPI) brought renewed inflation fears sending market lower. April CPI came in at a whopping 0.8% vs four times the 0.2% expected.
Asian markets ended mixed, while European markets closed with gains.
US 10 Year closed today at 1.693%, up 4.42%.
WTI crude oil closed at $65.72/barrel, up 0.67%.
This week's EIA Petroleum Status Report showed US crude oil inventories fell 0.4 million barrels vs 0.8 million in the prior week.
Market Close Volume Traded And Advance Decline Ratio
Markets sold off sharply for a third straight day, with the Dow plunging 681.50 points, Nasdaq plummeted 357.75 points, and the S&P fell 89.06 points. Total NYSE volume trade, a moderate 4.74 billion shares. Declining shares outpaced Advancing shares better than 6:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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