Wake Up Wall Street (SPY) (QQQ): Unleash the dogs of CPI

Ivan Brian FXStreet

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

All you need to know is what the CPI number is – everything else is on hold until then. Yesterday saw increased position closing ahead of the number and slighly more risk-on tone as global yields dropped slightly. The CPI number will set the tone for the remainder of the month and likely quarter, at least until the next Fed meeting.

Have markets gotten too hawkish? All will soon be revealed. We still feel the surprise is to the downside in the CPI release, and this should lead to an equity rally of sorts. Already we have seen two strong days for equities, so the follow-through may not be as strong, assuming we do get a lower than expected CPI reading.

The dollar is virtually unchanged this morning at 1.1436 versus the euro. while Oil is back above $90. Bitcoin is at $44,700, and Gold is trading for $1,831.

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European markets are flat: Eurostoxx and FTSE are flat, but the Dax is +0.5%.

US futures are mixed: S&P flat, Dow +0.2%, and Nasdaq -0.1%.

Wall Street (SPY) (QQQ) News

EU raises inflation forecast from 2.2% to 3.5%.

Peloton (PTON) has decent Wednesday after huge rally on Tuesday.

Disney (DIS) posts strong earnings and subscriber growth.

Coca-Cola (KO) beats on earnings. Up 2% premarket.

Pepsi (PEP) also beats on earnings.

Twitter (TWTR) misses on earnings but up on $4 billion buyback announcement.

Unilever (UL) warns of price rises.

UBER beats on earnings, up 5% in premarket.

Twilio (TWLO) up 17% on strong earnings.

Mattel (MAT) up 10% on earnings.

AstraZeneca (AZN) up 3% on strong earnings, buybacks.

Lumen (LUMN) down 10% on earnings miss.

Credit Suisse (CS) down 4% on earnings.

Vimeo (VMEO) down 20% on earnings guidance.

Canada Goose (GOOS) lowers guidance, down 9%.

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.

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