Wake Up Wall Street (SPY) (QQQ): Powell pushes equities ever higher as inline CPI calms investors
Here is what you need to know on Wednesday, January 12:
Equity markets got the usual Powell push on Tuesday as the Fed Chair's testimony kept the straight and narrow and delivered nothing too surprising. The Fed has become adept at signaling its intentions well in advance to the market. A few months ago the thought of a March rate hike would likely have sent markets into panic mode, but now the probability is running at nearly 90% and equity markets appear calm. The Nasdaq has returned to the green and is making up for lost time. The just out CPI is high, very high, but markets expect this, and so we should see more gains on Wednesday.
The dollar has weakened after the CPI as perhaps more was expected. It is trading at 1.1393 now versus the euro. Gold is at $1,818, and Oil has moved higher at $82.04. Bitcoin is recovering ground and is back to $43,000.
European markets are higher: Eurostoxx +0.4%, FTSE +0.5% and Dax +0.35.
US futures are higher: S&P +0.4%, Dow +0.35 and Nasdaq +0.5%
Wall Street (SPY) (QQQ) stock news
US CPI 7% for Dec. inline. Core CPI 5.5% yearly, 0.6% monthly.
Tesla (TSLA): Chinese deliveries hit a record.
Biogen (BIIB) falls 9% premarket on the decision of Medicare/Medicaid to only grant coverage for new Alzheimers drug if the patient is in a clinical trial.
Moderna (MRNA) fell 5% on Tuesday despite a market rally.
Ocugen (OCGN) up 5% premarket on covaxin data showing positive results versus Omicron and Delta.
DoorDash (DASH) upgraded by Evercore.
Meta Platforms (FB) names Door Dash CEO to its board.
DIDI up 5% on talk of Hong Kong listing in Q2.
Crocs (CROX): Piper Sandler names it a top pick.
DISH and DirecTV are in merger talks, according to New York Post.
Paypal (PYPL) downgraded at Jefferies.
Just Eat (GRUB): Did somebody say...up 4% on maintaining 2022 forecasts.
Ally Financial (ALLY) raises dividend by 20%, $2 billion share buyback.
Upgrades and downgrades
Source: Benzinga Pro
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.
