Wake Up Wall Street (SPX) (QQQ): CPI surprises but not too much, markets power on

Here is what you need to know on Thursday, June 10:

The US CPI is now out of the way so markets can return to looking for fresh highs. The worries over inflation had been holding risk back for the last number of sessions, but now investors can put those worries to one side. Futures did a nice little dip just on the release of the data but already are powering higher, signalling new record highs are imminent. In other news, the ECB decided to unsurprisingly leave rates unchanged and continues to buy a truckload of bonds in tandem with every other major central bank. Inflation may be ticking up, but the ECB must keep the pandemic measure in place. The Bank of England yesterday said the economy was going "gangbusters," and Thursday sees the first Bank of England rate hike brought forward by analysts. 

The dollar dusts off any inflation worries and is unchanged at 1.2185 versus the euro despite a little pop in the 10-year yield to 1.52%. Oil finally breaks above $70 for WTI, while Gold is at $1,892. Bitcoin is steady again (can you believe we are saying that?) at $37,700.

European markets are modestly higher, the euro Stoxx and Dax are flat, while the FTSE is +0.3%. 

US futures are now higher. S&P and Nasdaq are +0.4%, while the Dow is +0.5%.

Wall Street top news

US CPI comes in higher than expected, 0.6% monthly versus 0.5% expected. Yearly is 5.5% versus 4.2% expected, the highest since 2008.

US President Biden begins tour of Europe and G7 meeting, meets Russian President Putin at the end of the trip to Switzerland.

EU and UK continue to haggle over Northern Irish trade.

Police in China arrest over 1,000 people involved in cryptocurrency laundering.

JBS pays a ransom to hackers in Bitcoin.

GameStop (GME) announces new CEO Matt Furlong, formerly of Amazon (AMZN). Sales rose 25% in Q1 with a smaller than expected loss reported. 

Signet Jewelers (SIG) beat estimates, EPS $2.23 versus $1.27 estimate.

Service Now (NOW) added to Goldman conviction buy list. 

Boeing (BA) and United Airlines (UAL), United in talks to buy 100 737s. Bloomberg.

Tesla (TSLA) is to launch Model S Plaid at the Freemont factory.

National Music Publishers Association is rumoured to be bringing a lawsuit against Roblox (RBLX) over music use on the gaming platform.

Celsius (CELH) announces a stock offering.

Upgrades, downgrades, premarket movers

Source: Benzinga

Economic releases





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