Wednesday May 10, 2023: $173.56 +$1.78 +1.04%
May 10, 2023 0:58:45 GMT -8
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Post by Dave on May 10, 2023 0:58:45 GMT -8
Good morning. We have a red pre-market at -0.34% at this moment.
Stocks Slip as Caution Prevails Before US CPI Data: Markets Wrap
Wednesday, May 10
The Walt Disney Company (DIS), Toyota Motor Corp. (TM), Takeda Pharmaceutical Company (TAK), Manulife Financial Corp. (MFC), Nutrien Ltd. (NTR), Li Auto (LI), Roblox Corporation (RBLX), First Citizens BancShares (FCNCA), and U-Haul Holding Company (UHAL) report earnings
Consumer Price Index (CPI) Inflation (Apr)
The Walt Disney Company (DIS), Toyota Motor Corp. (TM), Takeda Pharmaceutical Company (TAK), Manulife Financial Corp. (MFC), Nutrien Ltd. (NTR), Li Auto (LI), Roblox Corporation (RBLX), First Citizens BancShares (FCNCA), and U-Haul Holding Company (UHAL) report earnings
Consumer Price Index (CPI) Inflation (Apr)
Stocks Slip as Caution Prevails Before US CPI Data: Markets Wrap
Retail and consumer shares were the biggest drag on European stocks, outweighing positive earnings news from some companies. Credit Agricole SA rallied following a record first-quarter for the French firm’s investment bank. Vestas Wind Systems A/S gained after the Danish wind turbine maker returned to profit.
Contracts for the S&P 500 and the Nasdaq 100 retreated, with Airbnb Inc. sliding 13% in premarket trading after the vacation home-rental company gave a cautious forecast for revenue in the second quarter. Asian stocks declined as a regional stocks gauge headed for the biggest loss in two weeks.
Wednesday’s US inflation figures were top of mind for investors, with US stocks tipped to rally if the reading is soft enough to lay the ground for a halt to Fed tightening, teams at Goldman Sachs Group Inc. and JPMorgan Chase & Co. said. The report is expected to show headline CPI rose by 5% in April on a year-on-year basis, still well above the 2% level targeted by the Fed.
“While the downward trend in inflation is likely to persist, the trajectory is still in question and may be slower than the Fed would like,” economists at Rand Merchant Bank in Johannesburg wrote in a note to clients.
Policy-sensitive two-year Treasury yields edged up to 4.05% while rates on the 10-year tenor were little changed at 3.51%. An index of dollar strength was steady.
Traders remain on guard to risks from the standoff in US debt talks, with some of Wall Street’s most experienced traders warning of “unthinkable” long-term damage from a default.
President Joe Biden and congressional Republicans made little tangible progress toward averting a first-ever US default. They pledged further negotiations on spending that would open the door to a possible agreement. Biden and House Speaker Kevin McCarthy plan to hold another meeting on Friday.
In commodities, oil snapped a three-day rally, falling as traders digested a mixed report on supplies from an industry group. Iron ore advanced as some Chinese steel mills resumed production, in a sign that demand may finally be increasing during the nation’s usual peak period for construction.
Contracts for the S&P 500 and the Nasdaq 100 retreated, with Airbnb Inc. sliding 13% in premarket trading after the vacation home-rental company gave a cautious forecast for revenue in the second quarter. Asian stocks declined as a regional stocks gauge headed for the biggest loss in two weeks.
Wednesday’s US inflation figures were top of mind for investors, with US stocks tipped to rally if the reading is soft enough to lay the ground for a halt to Fed tightening, teams at Goldman Sachs Group Inc. and JPMorgan Chase & Co. said. The report is expected to show headline CPI rose by 5% in April on a year-on-year basis, still well above the 2% level targeted by the Fed.
“While the downward trend in inflation is likely to persist, the trajectory is still in question and may be slower than the Fed would like,” economists at Rand Merchant Bank in Johannesburg wrote in a note to clients.
Policy-sensitive two-year Treasury yields edged up to 4.05% while rates on the 10-year tenor were little changed at 3.51%. An index of dollar strength was steady.
Traders remain on guard to risks from the standoff in US debt talks, with some of Wall Street’s most experienced traders warning of “unthinkable” long-term damage from a default.
President Joe Biden and congressional Republicans made little tangible progress toward averting a first-ever US default. They pledged further negotiations on spending that would open the door to a possible agreement. Biden and House Speaker Kevin McCarthy plan to hold another meeting on Friday.
In commodities, oil snapped a three-day rally, falling as traders digested a mixed report on supplies from an industry group. Iron ore advanced as some Chinese steel mills resumed production, in a sign that demand may finally be increasing during the nation’s usual peak period for construction.