Markets are for once behaving rationally and doing what only they can on the back of benign inflation data, push record highs. Concerns over possible inflationary pressures have weighed on investors' minds recently despite Powell and his team of Fed doves trying to calm fears. Tuesday's US CPI number came in only slightly ahead of expectations which served to calm fears and send equity markets higher. The US 10 year confirmed the move as the yield fell post the release and is now at 1.66% down 50 basis points on Tuesday. The laggard Nasdaq is no more and has broken record highs from February 16 as super tech leads the way. Siri is talking up Apple as she/he (who knows!) says a major event is due April 20!
Sectors: Tech +0.6% and the tech-heavy Consumer Discretionary lead while Financial and Consumer Staples are the under performers.
Selected stocks: ZOM -7%, Apple +2%, Tesla +6%, Roblox +4%, NIO +4%, AMC +4%, Novavax +10%, Moderna +8%, JNJ -3%, Pfizer +0.3%.
Here is what you need to know on Tuesday, April 13:
Calm prevails across equity markets, and it feels a bit eerie. There is no GameStop frenzy, no SPAC bubble, and no inflation pop to speak of. The only thing that is moving is the VIX volatility index. Uh oh!
Even the CPI data is relatively unsurprising as the 10-year Treasury yield retreats slightly on a blasé inflation release. Pfizer and Moderna look to have a duopoly position in covid vaccines as Astra Zeneca woes continue and the FDA suddently suspended the use of Johnson & Johnson's (JNJ) vaccine today. This means that the US is now reliant on Moderna and Pfizer.
Bitcoin set a new record above $63,000, while the dollar is flat. Gold also suffers from sluggishness and is little changed at $1,735. The US 10-year yield retreated into negative territory for the day post the CPI release and is now yielding 1.66%.
European markets are flat: the Dax is up 0.2%, the FTSE is down 0.2%, while the EuroStoxx is unchanged.
US futures are quiet. The Nasdaq is +0.1%, Dow -0.3%, and the S&P 500 is down 0.2%.
Stay up to speed with hot stocks news!
S&P 500 SPX top news
US FDA pauses use of JNJ's covid vaccine after reports of blood clots.
US CPI MoM 0.6%, core 0.3%.
Altimeter Growth Corp (AGC) is to merge with Grab Holdings in the world's biggest SPAC merger. AGC shares are trading at $14.13 in the pre-market. This is nothing like the appreciation seen in previous SPAC frenzies such as CCIV.
JNJ: US is to pause the use of JNJ's covid vaccine to investigate reports of very rare blood clots.
Novavax: says supply shortages are hindering the rollout of its covid vaccine.
Apple: Online assistant Siri tells users that Apple is hosting a special event on April 20.
Goldman Sachs to report earnings on Wednesday before the market opens. see earnings estimates.
Wells Fargo and BBBY also report before the market opens on Wednesday. see earnings estimates.
Aphria shares suffered after the close on Monday as earnings dissappointed.
Alibaba (BABA) shares jumped 9% on Monday as Alibaba's ANT subsidiary was ordered to revamp by regulators and BABA was fined $2.78 billion.
Ups and downs
JetBlue and Spirit: Susquehanna upgrades.
Boeing: Goldman Sachs named as a top pick ahead of earnings.
NVIDIA: Rosenblatt and Barclays raise price target.
Virgin Galactic SPCE: Bernstein initiates as a market perform.
Urban Outfitters: Morgan Stanley and Telsey Advisory Group raise price target.
Amazon: Jefferies reiterates buy rating.
Economic releases
.png)
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.