Wake Up Wall Street (SPY) (QQQ): US CPI shoots down hawks as equities bounce
Here is what you need to know on Tuesday, April 12:
The CPI data from the US just released should at least provide some relief to markets. While broadly in line and a little better in the core number, investors have been conditioned to expect the worst now from inflation figures. These should at least provoke a rethinking on yields and Fed moves and may see a repricing of risk assets to the upside.
Already, we notice the Nasdaq has spiked nearly 1% on the number. Bond market positioning is now skewed short and we should see a race to cover which could lead to a nice squeeze lower for yields and squeeze higher for tech equities. The dollar is naturally not happy and has weakened on the release.
The Dollar Index is at 100.05 now. Oil is recovering some ground up to $98 now but news of Shanghai still seeing more covid infections may temper those gains. Bitcoin is at $40,400 and gold is $1,962 currently. US 10-year yields have just lost 10 bps on the back of the CPI print.
European markets are mixed: Eurostoxx +0.8%, FTSE -0.5% and Dax -0.8%.
US futures are now all higher: Nasdaq +0.4%, Dow +0.1% and S&P +0.2%.
Wall Street (QQQ) (SPY) top news
China health official says Shanghai covid infections are not under control.
US CPI in line, core slightly better, lower than expected.
Deutsche Bank drops 8% on block seller.
Crowdstrike (CRWD) up 5% on Goldman Sachs upgrade.
Carmax (KMX) drops on weak earnings.
Starbucks (SBUX) downgraded by Citi.
Novartis (NVS) drops on a reorganization plan.
Actinium Pharma (ATNM) up 40% on deal with Immedica.
VERU up 8% after 182% gain on Monday on trial data re covid treatment.
Kohls (KSS) up 5& on Franchise Group entering bidding war for Kohls.
Beyond Meat (BYND) up 4% premarket on news of major expansion of meatless chicken-CNBC.
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.
