Renewed Inflation Concerns May Lead To Pullback On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Thursday, 10 February 2022 09:11:49 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [How Pro Traders Actually Pick Their Stocks]( When a stock skyrockets, we're eager to see if it will continue to push higher or reverse course. And there is one way to know what's coming next, but it isn't what you think. It's the only guaranteed way to get answers. [Check out this must-see tool for predictive analysis.]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a lower open on Thursday, with stocks likely to give back ground after moving sharply higher over the two previous sessions. Renewed inflation concerns may lead to a pullback on Wall Street after a highly anticipated Labor Department report showed the annual rate of growth in consumer prices accelerated more than expected in the month of January. The report consumer prices in January were up by 7.5 percent compared to the same month a year ago, reflecting the fastest annual growth since February of 1982. Economists had expected the annual rate of growth to reach 7.3 percent. The faster year-over-year growth came as the Labor Department said its consumer price index climbed by 0.6 percent in January, matching the upwardly revised advance seen in December. Economists had expected consumer prices to rise by 0.5 percent, matching the increase originally reported for the previous month. The report showed core consumer prices, which exclude food and energy prices, also advanced by 0.6 percent in January, matching the increase seen in December. Economists had also expected core prices to rise by 0.5 percent. The annual rate of growth in core prices accelerated to 6.0 percent in January from 5.5 percent in December, showing the biggest jump since August of 1982. The data may raise concerns that the Federal Reserve will increase interest rates more aggressively in its effort to fight elevated inflation. While the inflation data may weigh on the broader markets, some individual stocks are likely to see initial strength on upbeat earnings news. Shares of Disney (DIS) are moving sharply higher in pre-market trading after the entertainment giant reported fiscal first quarter earnings that exceeded analyst estimates on both the top and bottom lines. Stocks showed a strong move to the upside during trading on Wednesday, extending the rally seen on Tuesday. The major averages all moved notably higher, with the tech-heavy Nasdaq helping to lead the advance. The Nasdaq reached a new high for the session going into the close, spiking 295.92 points or 2.1 percent to 14,490.37. The S&P 500 also surged up 65.64 points or 1.5 percent to 4,587.18, while the Dow jumped 305.28 points or 0.9 percent to 35,768.06. The extended rally on Wall Street came as stocks continued to recover from the sharp pullback seen in January, with the Dow reaching its best levels in almost a month. The major averages remain well off the record highs but have climbed well off the multi-month lows set in late January. Upbeat earnings news from some well-known companies also contributed to the continued strength on Wall Street. Shares of Chipotle Mexican Grill (CMG) showed a strong upward move after the restaurant chain reported better than expected fourth quarter earnings. Cannabis producer Canopy Growth (CGC) also moved sharply higher after reporting a narrow than expected fiscal third quarter loss on revenues that exceeded analyst estimates. Shares of Enphase Energy (ENPH) also spiked after the solar energy company reported fourth quarter results that beat expectations and provided upbeat guidance. On the other hand, shares of CVS Health (CVS) moved notably lower after the healthcare company reported fourth quarter results that beat expectations but seemed to disappoint investors by reiterating its 2022 guidance. Airline stocks extended the rally seen early in the week, with the NYSE Arca Airline Index soaring by 3.7 percent to its best closing level in well over two months. Significant strength also emerged among semiconductor stocks, as reflected by the 3.4 percent spike by the Philadelphia Semiconductor Index. Biotechnology stocks also turned in a strong performance on the day, resulting in a 3.3 percent jump by the NYSE Arca Biotechnology Index. Software, commercial real estate and chemical stocks also saw notable strength on the day, reflecting broad based buying interest on Wall Street. --------------------------------------------------------------- [MUST SEE 'Set and Forget' Dividend Portfolio]( The easiest way to self-manage your dividend income portfolio without losing a ton of money is following my advice below. Dividend stocks I personally recommend and buy myself are meant to held for a long time. One of my current dividend payers to 'set and forget' for now is paying over 25% yields. There?s a process I follow to build this dividend portfolio that grows and ends up paying your bills for life. See how easy it is to follow. [Click here to see how this 'set and forget' dividend portfolio works.]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( Reflecting higher prices for food, electricity, and shelter, the Labor Department released a report on Thursday showing U.S. consumer prices increased by slightly more than expected in the month of January. The Labor Department said its consumer price index climbed by 0.6 percent in January, matching the upwardly revised advance seen in December. Economists had expected consumer prices to rise by 0.5 percent, matching the increase originally reported for the previous month. With the slightly bigger than expected monthly increase, the annual rate of growth in consumer prices accelerated to 7.5 percent in January, the biggest spike since February of 1982. The report showed core consumer prices, which exclude food and energy prices, also advanced by 0.6 percent in January, matching the increase seen in December. Economists had expected core prices to rise by 0.5 percent. The annual rate of growth in core prices accelerated to 6.0 percent in January from 5.5 percent in December, showing the biggest jump since August of 1982. Meanwhile, a separate report from the Labor Department showed another modest decrease in initial jobless claims in the week ended February 5th. The report said initial jobless claims fell to 223,000, a decrease of 16,000 from the previous week?s revised level of 239,000. Economists had expected jobless claims to dip to 230,000 from the 238,000 originally reported for the previous month. At 11 am ET, the Treasury Department is scheduled to announce the details of this month?s auction of twenty-year bonds. The Treasury Department is also due to announce the results of this month?s auction of $23 billion worth of thirty-year bonds at 1 pm ET. At 7 pm ET, Richmond Federal Reserve President Thomas Barkin is scheduled to speak before a virtual Stanford Institute for Economic Policy Research Associates Meeting. --------------------------------------------------------------- Stocks in Focus Shares of Twilio (TWLO) are soaring in pre-market trading after the communications software company reported a narrower than expected fourth quarter loss on revenues that exceeded analyst estimates. The company also provided upbeat guidance. Cybersecurity platform company Datadog (DDOG) is also seeing significant pre-market strength after reporting fourth quarter results that beat expectations on both the top and bottom lines. Shares of Mattel (MAT) are also likely to move to the upside after the toymaker after reporting better than expected fourth quarter results and providing an upbeat 2022 outlook. On the other hand, shares of iRobot (IRBT) are moving sharply lower in pre-market trading after the consumer robotics company reported a wider than expected fourth quarter loss on revenues that missed analyst estimates. Outdoor apparel maker Canada Goose (GOOS) is also likely to come under pressure after reporting weaker than expected fiscal third quarter earnings and lowering its full-year guidance. --------------------------------------------------------------- --------------------------------------------------------------- Europe European stocks have moved to the downside on Thursday, as investors digest mixed earnings updates and the U.S. consumer price data. While the French CAC 40 Index has slid by 0.6 percent, the U.K.?s FTSE 100 Index and the German DAX Index are down by 0.2 percent and 0.1 percent, respectively. Arcelor Mittal has moved notably lower. After posting its biggest annual profit in more than a decade, the company said it expects growth in global steel demand to slow this year. Vestas Wind Systems A/S has also moved to the downside. After reporting a drop in its fiscal 2021 profit, the Danish wind turbines maker said that 2022 would be challenging for the industry. Unilever has also come under pressure after the consumer goods company warned of lower margins due to high inflation. Online food ordering company Delivery Hero has plunged as much as 24 percent after its full-year profit projections disappointed analysts. Thyssenkrupp has also dropped despite the industrial company posting better-than-expected sales and earnings in its first quarter. On the other hand, British drug maker AstraZeneca has moved sharply higher after its quarterly results topped expectations. Redrow has also moved to the downside. The homebuilder lifted its guidance for 2024 after reporting a 17 percent increase in its interim profit. Societe Generale has also surged as the French lender topped estimates to post its best annual performance ever. Credit Agricole has also moved to the upside after its fourth-quarter net income came ahead of market views. Siemens has also jumped after the automation company delivered robust quarterly profit and confirmed its guidance for 2022, saying it was seeing "extraordinary" order intake from its customers. Metro AG has also soared. The cash-and-carry firm has reported a 20 percent increase in sales in the first quarter of its financial year. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks ended mostly higher in muted trading on Thursday, as investors awaited the release of U.S. consumer price data later in the day for further signs of accelerating inflation. The inflation report will help set expectations for how the U.S. Federal Reserve will set monetary policy at its March 15-16 meeting. Chinese shares ended on a positive note after reports of state-backed funds intervening in the stock market. The benchmark Shanghai Composite index rose 5.96 points, or 0.2 percent, to 3,485.91, while Hong Kong's Hang Seng Index edged up 0.4 percent to settle at 24,924.35. Japanese shares advanced as tech stocks followed their U.S. peers higher. Upbeat earnings results from Honda Motors also offered some support. The Nikkei 224 Index rose 116.21 points, or 0.4 percent, to 27,696.08 after having climbed nearly 1 percent earlier in the session. The broader Topix closed 0.5 percent higher at 1,962.61 ahead of a public holiday on Friday. Chip-related companies topped the gainers list, with Advantest rallying 2.8 percent. Tokyo Electron added 1.8 percent and Screen Holdings gained 2.3 percent. Automaker Honda Motor soared 5.6 percent after raising its full-year operating forecast. Rival Toyota Motor declined 2.7 percent and technology investor SoftBank Group gave up 2.3 percent. Australian markets eked out modest gains after NAB's quarterly cash earnings topped forecasts. The benchmark S&P/ASX 200 Index inched up 20.20 points, or 0.3 percent, to 7,288.50, extending gains for a third straight day. The broader All Ordinaries Index ended up 22.70 points, or 0.3 percent, at 7,595.50. Lender National Australia Bank surged 4.5 percent after reporting a 9 percent increase in first quarter profit, driven by growth in its home and business lending. The Reserve Bank of Australia (RBA) ceased its quantitative easing campaign today after buying up more than A$350 billion ($251.23 billion) in bonds as part of a massive pandemic stimulus package. Seoul stocks finished marginally higher amid cautious sentiment ahead of the U.S. inflation data. The benchmark Kospi edged up 3.08 points, or 0.1 percent, to 2,771.93. Samsung Electronics, Naver and SK Hynix climbed 1-3 percent. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It?s a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are jumping $1.02 to $90.68 a barrel after rising $0.30 to $89.66 a barrel on Wednesday. Meanwhile, after climbing $8.70 to $1,836.60 an ounce in the previous session, gold futures are slipping $2.70 to $1,833.90 an ounce. On the currency front, the U.S. dollar is trading at 116.13 yen versus the 115.52 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1386 compared to yesterday?s $1.1425. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49