Wake Up Wall Street (SPY) (QQQ): Boom there goes the PPI record
Here is what you need to know on Wednesday, April 13:
Just when you thought it was safe to go back into the water, the PPI rears up to take another bite out of your portfolio. On Tuesday the CPI print was high yes but not shockingly so and actually, the core number came in slightly lower than expected. Equities attempted to rally but an afternoon sell-off put paid to that. Wednesday's PPI was expected to be a non-event by comparison but instead it rockets higher. The core number came in double what was expected. Futures took an immediate leg lower before recovering to now basically trade flat. Bond yields spiked higher before also reversing so perhaps this one will get overlooked. We doubt it but we have pointed out how bond positioning is now all one way so it may be time to watch for a short squeeze in the bond market. This underreaction is further evidence of that. We see bond yields dropping in the next few weeks.
The dollar is weaker too at 100.41 for dollar index. Gold is higher at $1975 and oil is higher at $102. Bitcoin is lower by 0.6% at $39,700.
European markets are mixed: Eurostoxx -0.1%, FTSE +0.2% and Dax -1%.
US futures are positive, just: Nasdaq +0.3%, Dow and S&P both +0.15.
Wall Street (SPY) (QQQ) top news
Germany rejects an EU ban on Russian oil imports.
US PPI 9.2% yearly versus 8.4% estimate.
Bed Bath & Beyond (BBBY) misses earnings, down 10% premarket.
Delta Airlines (DAL) up on EPS beat despite revenue missing.
Paypal (PYPL) down on CFO departure.
United Airlines (UAL) Southwest (LUV) and American Airlines (AAL) up on Delta read across.
JPMorgan (JPM) misses on EPS revenue beats, $30 billion buyback, shares down 3% premarket.
BlackRock (BLK) beat on EPS now managing $9.57 trillion!
Charles Schwab (SCHW) named a top pick by Morgan Stanley.
Upgrades and downgrades
Source: Benzinga Pro
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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.
