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%.
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.
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