Tamer-Than-Expected Inflation Data May Lead To Extended Rebound On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Wednesday, 12 July 2023 09:02:42 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( 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 extend the rebound seen over the two previous sessions. The futures saw a significant surge following the release of a highly anticipated Labor Department report showing consumer prices increased by less than expected in the month of June. The Labor Department said its consumer price index rose by 0.2 percent in June after inching up by 0.1 percent in May. Economists had expected consumer prices to climb by 0.3 percent. Excluding food and energy prices, core consumer prices still increased by 0.2 percent in June after rising by 0.4 percent in May. Core consumer prices were also expected to rise by 0.3 percent. The report also showed the annual rate of consumer price growth slowed to 3.0 percent in June from 4.0 percent in May. Economists had expected the rate of growth to slow to 3.1 percent. The annual rate of core consumer price growth also decelerated to 4.8 percent in June from 5.3 percent in May. The rate of growth was expected to slow to 5.0 percent. While the Federal Reserve is still widely expected to raise interest rates by another quarter point later this month, the data has led to renewed optimism that will be the end of the central bank's rate-hiking cycle. Stocks moved mostly higher over the course of the trading day on Tuesday, adding to the modest gains posted in the previous session. The major averages all moved to the upside, further offsetting the pullback seen last week. The major averages reached new highs for the session going into the close. The Dow jumped 317.02 points or 0.9 percent to 34,261.42, the Nasdaq rose 75.22 points or 0.6 percent to 13,760.70 and the S&P 500 climbed 29.73 points or 0.7 percent to 4,439.26. The strength on Wall Street came as traders looked ahead to release of the Labor Department's closely watched report on consumer price inflation. "U.S." stocks rose as bond yields remained capped as Wall Street looks like it is ready to move beyond a pivotal inflation report that should suggest interest rates will stay higher for longer," said Edward Moya, senior market analyst at OANDA. He added, "Headline CPI might fall to 2.9% and core could see the lowest reading since 2021, but sticky inflation signs will likely remain. " Energy stocks saw substantial strength on the day, benefiting from a sharp increase by the price of crude oil. Reflecting the strength in the sector, the Philadelphia Oil Service Index spiked by 3.2 percent and the NYSE Arca Oil Index jumped by 2.2 percent. Significant strength was also visible among financial stocks, with the KBW Bank Index and the NYSE Arca Broker/Dealer Index both climbing by 1.7 percent. Tobacco, steel and natural gas stocks also saw considerable strength on the day, moving higher along with most of the other major sectors. --------------------------------------------------------------- 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 by slightly less than expected in the month of June, according to a report released by the Labor Department on Wednesday. The Labor Department said its consumer price index rose by 0.2 percent in June after inching up by 0.1 percent in May. Economists had expected consumer prices to climb by 0.3 percent. Excluding food and energy prices, core consumer prices still increased by 0.2 percent in June after rising by 0.4 percent in May. Core consumer prices were also expected to rise by 0.3 percent. The report also showed the annual rate of consumer price growth slowed to 3.0 percent in June from 4.0 percent in May. Economists had expected the rate of growth to slow to 3.1 percent. The annual rate of core consumer price growth also decelerated to 4.8 percent in June from 5.3 percent in May. The rate of growth was expected to slow to 5.0 percent. At 9:45 am ET, Minneapolis Federal Reserve President Neel Kashkari is due to participate in a panel discussion titled "Banking Solvency and Monetary Policy" at the National Bureau of Economic Research Summer Institute in Massachusetts. The Energy Information Administration is scheduled to release its report on oil inventories in the week ended July 7th at 10:30 am ET. Crude oil inventories are expected to increase by 0.2 million barrels after falling by 1.5 million barrels in the previous week. At 1 pm ET, the Treasury Department is scheduled to announce the results of this month's auction of $$32 billion worth of ten-year notes. The Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, at 2 pm ET. At 4 pm ET, Cleveland Federal Reserve President Loretta Mester is scheduled to speak at the National Bureau of Economic Research Summer Institute: Macro, Money and Financial Frictions. --------------------------------------------------------------- [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.]( --------------------------------------------------------------- Europe European stocks have moved to the upside on Wednesday, extending recent gains as focus shifts to U.S. inflation data. U.K. stocks have outperformed regional peers after the Bank of England said its annual stress test of eight major lenders showed that each could cope with rising interest rates in a stressed environment and none would need to raise additional capital. While the U.K.?s FTSE 100 Index has shot up by 1.4 percent, the German DAX Index is up by 0.7 percent and the French CAC 40 Index is up by 0.7 percent. Thales Group has moved sharply higher in Paris. The French defense and technology group said that it started negotiations to acquire Cobham Aerospace Communications, a supplier of safety cockpit communication systems, for $1.1 billion. Springfield Properties has moved notably higher after it appointed Iain Logan as the chief financial officer. Supermarket chain Tesco has also advanced as it announced continuation of existing 750 million pounds share buyback program. Swiss Re has also risen after its Board of Directors proposed Jacques de Vaucleroy, who currently acts as chair ad interim, for election as Chairman at next annual general meeting in April 2024. Meanwhile, Tullow Oil has moved sharply lower. The Irish oil and gas company has reaffirmed its crude oil production outlook for full year 2023. Norway's largest bank DNB has also moved to the downside despite reporting better-than-expected second-quarter earnings. --------------------------------------------------------------- [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.]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks ended mixed on Wednesday as investors awaited U.S. consumer inflation data that could provide more clarity on the Federal Reserve's monetary policy plans. The Fed is likely to raise its benchmark interest rate by 25 basis points to a 5.25-5.5 percent range later this month after the pause seen in June's FOMC meeting. Upcoming U.S. earnings also remained on investors' radar, with JPMorgan, Citigroup and Wells Fargo due to unveil their second-quarter earnings this week. Chinese stocks fell notably despite stronger-than-expected credit data for June. The benchmark Shanghai Composite Index dropped 0.8 percent to 3,196.13, while Hong Kong's Hang Seng Index rallied 1.1 percent to 18,860.95. Tencent Holdings rose 1.6 percent and Alibaba gained about 1 percent after China's state planner praised the companies in a statement detailing a study it had done on platform firms. Japanese shares closed lower to hit a one-month low as a firmer yen weighed on exporters. The Nikkei 225 Index dropped 0.8 percent to 31.943.93, while the broader Topix Index settled 0.7 percent lower at 2,221.48. Chipmakers and pharmaceutical stocks were among the biggest decliners. Tokyo Electron tumbled 3.3 percent and Eisai lost 4.1 percent. SoftBank jumped 2.1 percent after reports that the tech conglomerate is considering U.S. listing for its payments business. Shares of Z Holdings soared 5.6 percent. Japan's core machinery orders unexpectedly declined in May, while producer price inflation slowed for the sixth consecutive month in June, separate reports showed earlier in the day. Seoul stocks ended higher, with the Kospi Average rising 0.5 percent to 2,574.72. Leading steelmaker POSCO Holdings topped the gainers list to settle 5.8 percent higher at 417,500 won. Australian markets closed a tad higher as rising commodity prices lifted mining and energy stocks. The benchmark S&P/ASX 200 Index rose 0.4 percent to 7,135.70, while the broader All Ordinaries Index gained 0.4 percent to close at 7,341.50. --------------------------------------------------------------- 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]( --------------------------------------------------------------- Commodities Crude oil futures are climbing $0.66 to $75.49 a barrel after jumping $1.84 to $74.83 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,949.70, up $12.60 an ounce compared to the previous session?s close of $1,937.10. On Tuesday, gold rose $6.10. On the currency front, the U.S. dollar is trading at 139.15 yen compared to the 140.36 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1060 compared to yesterday?s $1.1009. --------------------------------------------------------------- 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