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S&P 500 Day Ahead Outlook: New highs, stimulus checks in the post, it's all good, or is it

Ivan Brian FXStreet

Here is what you need to know on Friday, March 12:

Equities stormed higher on Thursday as the Tech sector finally roused itself with the Nasdaq rallying nearly 2% and the S&P setting yet another 2021 record high. The catalysts had been inflation fears calming, the US Stimulus Bill passing quicker than expected, and positive news on re-opening and vaccination targets.

Friday sees things get a little less rosy. US PPI comes in more or less in line but is still showing strong growth in prices from a year ago. PPI was 2.8% versus 2% a year ago, the core number was 2.5%. Profit-taking after Thursday's strong gains ahead of the weekend will also be a factor.

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The Dollar is higher on Friday as inflation and risk-off returns, trading at 1.1934 versus the Euro, Oil is flat at $65.94 and the US 10 Year is yielding uh oh 1.61%.

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European markets are again mixed (aren't they always!) with the FTSE up 0.3% but the Dax down 0.6% and EuroStoxx down 0.2%.

US futures are weaker with the Nasdaq leading the way lower, down 1.3%, S&P down 0.5%, and the Dow down 0.1%.

S&P 500 Top News

US PPI comes in pretty much in line 2.8% year on year, 0.5% month on month.

President Biden signs the US stimulus bill earlier than expected.

UBS Global Wealth Management sees further equity market appreciation, according to Chief Investment Officer.

Ned Davis Research says a US 10 Year rate of 2% could wipe 20% of the Nasdaq.

President Biden directs all US States to make all adults eligible for vaccine by May 1.

Tesla in talks with TATA Power India for EV charging infrastructure-Reuters. Separately a fire was reported overnight at Teslas Fremont factory (see more).

Rakuten selling an 8% stake to Japan Post Holdings.

Grab is in talks to go public via a SPAC merger-Reuters, citing sources.

Baidu, Tencent: Chinese market regulator fines 12 companies over deals violating anti-monopoly rules, Reuters.

JD.com: Company in talks to buy stake or entirety of Sinolink Securities-Reuters, citing sources.

Johnson&Johnson: covid vaccine approved in EU, South Africa has an option for 20 million extra doses on top of its initial 11 million order.

Microsoft: Ransom hackers using a flaw in Microsoft's email server software according to Phillip Misner, Microsoft security program manager. Reuters.

Novavax: Covid vaccine 96% effective against the original strain of coronavirus the company says. Shares up 16% in pre-market.

Twitter to make live audio feature available to all Twitter users by April.

Poshmark beats but poor guidance hits shares, down 13% in pre-market.

Docusign beats, issues strong guidance but shares down 4% in pre-market, go figure!

Alibaba: Possibly facing a record fine from Chinese antitrust regulators, CNBC citing WSJ and sources.

Ups and Downs

Gamestop: Bank of America reiterates as underperform.

Chevron and Exxon: JPMorgan names as top picks.

T-Mobile: Credit Suisse raises price target, Citi reiterates as a top pick

DocuSign: Evercore ISI upgrades.

Economic Releases

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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