Positive Reaction To Inflation Data May Lead To Strength On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Wednesday, 10 May 2023 09:23:26 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [Win an iPad & Level 2 Access for 1 year]( Complete our user survey, help us to make sure we are providing the tools and content most valuable to you! [BEGIN SURVEY HERE]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a higher open on Wednesday, with stocks likely to move back to the upside after ending the previous session mostly lower. The futures turned positive following the release of the Labor Department?s highly anticipated report on consumer price inflation in the month of April. The Labor Department said its consumer price index climbed by 0.4 percent in April after inching up by 0.1 percent in March. Economists had expected consumer prices to rise by 0.4 percent. Excluding food and energy prices, core consumer prices also rose by 0.4 percent in April, matching the increase seen in March as well as economist estimates. The report also showed the annual rate of consumer price growth edged down to 4.9 percent in April from 5.0 percent in March. Economists had expected the year-over-year growth to be unchanged. The annual rate of core consumer price growth also slipped to 5.5 percent in April from 5.6 percent in March. The modest slowdown matched economist estimates. With the annual consumer price growth marking the smallest 12-month increase since April 2021, the data may add to optimism about the Federal Reserve pausing its interest rate hikes. CME Group's FedWatch Tool is currently indicating a 91.5 percent chance the Federal Reserve will leave interest rates unchanged at its next meeting in June. After coming under pressure early in the session, stocks remained mostly lower throughout the trading day on Tuesday. The major averages all moved to the downside on the day after ending Monday's trading narrowly mixed. The tech-heavy Nasdaq slid 77.36 points or 0.6 percent to 12,179.55 and the S&P 500 fell 18.95 points or 0.5 percent to 4,119.17. The narrower Dow flirted with positive territory late in the session but closed down 56.88 points or 0.2 percent at 33,561.81. Overseas weakness carried over onto Wall Street amid ongoing concerns about the outlook for the global economy following disappointing Chinese trade data. Traders may also have been moving money out of relatively risky assets like stocks ahead of the release of key inflation data. Fed Chair Jerome Powell said following last week's rate hike that the central bank would take a "data-dependent approach" to future monetary policy decisions. "The April CPI report is going to remind everyone that inflation is staying sticky," said Edward Moya, senior market analyst at OANDA. "The Fed won't be raising rates on a hot report, but it will justify calls that rates will stay higher for longer." The weakness on Wall Street may also have reflected concerns about the debt ceiling ahead of a meeting between President Joe Biden and House Speaker Kevin McCarthy, R-Calif. McCarthy has called for any deal on raising the debt ceiling to include spending cuts and told NBC News he is not in favor of a short-term fix. Overall trading activity remained relatively subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines. Tobacco stocks showed a significant move to the downside on the day, dragging the NYSE Arca Tobacco Index down by 2.3 percent to its lowest closing level in well over five months. Considerable weakness was also visible among semiconductor stocks, as reflected by the 1.9 percent slump by the Philadelphia Semiconductor Index. Chipmaker Skyworks Solutions (SWKS) posted a steep loss after reporting better than expected fiscal second quarter results but providing disappointing guidance for the current quarter. Chemical and networking stocks also saw some weakness on the day, while most of the other major sectors showed more modest moves. --------------------------------------------------------------- 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]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( Consumer prices in the U.S. increased in line with economist estimates in the month of April, the Labor Department revealed in a highly anticipated report released on Wednesday. The Labor Department said its consumer price index climbed by 0.4 percent in April after inching up by 0.1 percent in March. Economists had expected consumer prices to rise by 0.4 percent. Excluding food and energy prices, core consumer prices also rose by 0.4 percent in April, matching the increase seen in March as well as economist estimates. The report also showed the annual rate of consumer price growth edged down to 4.9 percent in April from 5.0 percent in March. Economists had expected the year-over-year growth to be unchanged. The annual rate of core consumer price growth also slipped to 5.5 percent in April from 5.6 percent in March. The modest slowdown matched economist estimates. At 10:30 am ET, the Energy Information Administration is due to release its report on oil inventories in the week ended May 5th. Crude oil inventories are expected to decrease by 1.6 million barrels after falling by 1.3 million barrels in the previous week. The Treasury Department is scheduled to announce the results of this month?s auction of $35 billion worth of ten-year notes at 1 pm ET. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Stocks in Focus Shares of Twilio (TWLO) are moving sharply lower in pre-market trading after the communications software company reported better than expected first quarter results but provided disappointing revenue guidance for the current quarter. Vacation booking platform Airbnb (ABNB) may also come under pressure after the company reported first quarter results that beat estimates but offered a weak second quarter forecast. On the other hand, shares of Rivian Automotive (RIVN) are seeing significant pre-market strength after the electric vehicle maker reported a narrower than expected first quarter loss on revenues that exceeded expectations. Drinks company Celsius Holdings (CELH) is also likely to move to the upside after reporting first quarter results that beat analyst estimates on both the top and bottom lines. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Europe After seeing modest weakness earlier in the day, European stocks have moved slightly higher following the release of the U.S. inflation data. Currently, the U.K.?s FTSE 100 Index, the French CAC 40 Index and the German DAX Index are all up by 0.1 percent. Data showed earlier in the day that German consumer inflation fell in April on easing food prices, but core inflation stayed high. Finalized data showed German annual inflation rate softened from 7.4 percent to 7.2 percent in April, unchanged from the preliminary figure. The harmonized index of consumer prices rose by 7.6 percent year-on-year. British caterer Compass Group has rallied after posting strong first-half results and lifting its full-year guidance. Melrose Industries has also jumped after the company said it was trading "materially ahead" of expectations. The company also outlined plans to "create further substantial value" for shareholders by repositioning itself as a pureplay aerospace company. French lender Credit Agricole has also surged after posting a record performance in the first quarter on higher trading revenue. Meanwhile, Swedish Orphan Biovitrum has plunged after the drug maker agreed to acquire U.S.-based CTI BioPharma in a deal valued at $1.7 billion. Dutch Bank ABN AMRO has also fallen despite reporting higher-than-expected earnings for the first quarter. Travel firm TUI has also tumbled after it posted a narrower quarterly underlying earnings before interest and tax (EBIT) loss of 242 million euros ($266.39 million). --------------------------------------------------------------- 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 fell broadly on Wednesday as investors took a risk-off approach ahead of U.S. consumer price inflation data due later in the day that could influence the Federal Reserve's policy decisions. The dollar weakened after crucial talks aimed at resolving an impasse over the U.S. debt ceiling didn't yield much progress. Gold prices were little changed, while oil snapped a three-day rally after industry data showed a surprise build in U.S. crude and gasoline stockpiles. Chinese markets tumbled as shares of Chinese state firms came under selling pressure after a recent rally. The benchmark Shanghai Composite Index slumped 1.2 percent to 3,319.15, while Hong Kong's Hang Seng Index dropped 0.5 percent to 19,762.20. Tencent Holdings rose half a percent after two days of losses. Japanese shares fell from a 16-month high as investors reacted to mixed earnings updates. The Nikkei 225 Index closed 0.4 percent lower at 29,122.18, while the broader Topix slid 0.6 percent to end at 2,085.91. Mitsubishi Corp. rallied 3.7 percent after announcing a share buyback. Department store operator Marui Group soared 15.2 percent on posting strong earnings, while Mitsubishi Motors slumped 9.8 percent after forecasting a profit drop. Nippon Steel plunged 8.7 percent after predicting a 47 percent decrease in net profit for the current business year to March 2024. Seoul stocks declined amid U.S. debt default woes. The Kospi dropped 0.5 percent to 2,496.51 despite the unemployment rate easing in April. Australian markets edged down slightly as the country saw its first budget surplus since 2008. The benchmark S&P/ASX 200 Index slipped 0.1 percent to 7,255.70, dragged down by financials and miners. The broader All Ordinaries Index finished marginally lower at 7,452.30. --------------------------------------------------------------- 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 slipping $0.12 to $73.59 a barrel after climbing $0.55 to $73.71 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,049.70, up $6.80 compared to the previous session?s close of $2.042.90. On Tuesday, gold surged rose $9.70. On the currency front, the U.S. dollar is trading at 134.61 yen compared to the 135.23 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0987 compared to yesterday?s $1.0962. --------------------------------------------------------------- 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