[Chart courtesy of MarketWatch.com] Moving the markets Yesterday’s hotter-than-expected CPI report could not keep the markets under water for any length of time. The same meme was at play today, after a stronger-than-expected retail sales report pushed equities into an early hole. In an almost repeat performance, the major indexes battled back, reclaimed their unchanged lines and closed moderately in …
CPI Report: From Hangover To Recovery
[Chart courtesy of MarketWatch.com] Moving the markets Wild chaotic swings during the early marked the uncertainty connected with the hotter-than-expected January CPI report. Stocks dumped, pumped, and dumped again before managing to recover steep early losses. The reversal pushed only the Nasdaq back above its respective unchanged line by a moderate margin. The CPI rose 0.5% for the month, which …
Front Running The CPI Report—Again
[Chart courtesy of MarketWatch.com] Moving the markets As we witnessed last month, traders maintained the same theme, namely front running the CPI report, on hopes that a weaker number will appear, which would persuade the Fed to take the foot of the hiking pedal, and that a more dovish stance towards interest rates would be appropriate. The major indexes tried …
Pondering A Subpar Earnings Season And Future Fed Moves
[Chart courtesy of MarketWatch.com] Moving the markets Traders were stuck in limbo today trying to assess future monetary policy, the current earnings season, which was subpar at best, and the profit outlook for the remainder of 2023. None of the above deliberations created much motivation by the bulls to drive this market higher, so the path of least resistance was …
Whipsawing Higher On “Transitory Disinflation”
[Chart courtesy of MarketWatch.com] Moving the markets As the chart above shows, pumping, dumping, and pumping was the theme of the day, as traders tried to incorporate Powell’s “transitionary disinflation” in their vocabulary, while assessing if it would produce a bullish or bearish outcome. Judging by the ramp into the close, the current picture is positive for equities, but traders …
Higher Rates Unsettle Markets
[Chart courtesy of MarketWatch.com] Moving the markets Bond yields jumped sharply with the 10-year adding some 24-basis points to end the session at 3.64%. The markets vacillated predominantly below the unchanged lines, but the major indexes managed to close off their intra-day lows. Still, rate hike expectations have exploded, as the hawkish theme remains to be the dominant one. …