January Markets: Dow, S&P 500 and Nasdaq Post Gains, Bitcoin Futures Rally 8%, CPI 6.4% Y/Y

On Wednesday, the Dow Jones Industrial Average closed higher by around 39 points to 34,128.05.[0] The S&P 500 rose 0.28% to 4,147.60, while the Nasdaq Composite climbed 0.92% to 12,070.59 during the session.[0] The Russell 2000, which focuses on small-cap stocks, increased by 20 points (1.1%) to 1,[1] US investors’ sentiment saw a slight improvement, as demonstrated by the CNN Money Fear and Greed index.[0]

Bitcoin futures rallied 8% to $24,125, while the yield on the benchmark 10-year Treasury note rose 3 basis points to 3.68%.[2] Retail sales last month increased by 3%, surpassing the expectation of economists for a 1.8% rise.[3]

Roblox (RBLX) experienced a surge in activity among stocks after they revealed their bookings data for Q4 had vastly exceeded expectations.[3] Meanwhile, Airbnb (ABNB) jumped 13.4% after the company reported better-than-expected Q4 sales and earnings and its first annual profit.[4]

Devon Energy (DVN), an oil and natural gas producer, experienced a 10.5% decrease in its share price in high[5] Q4 adjusted earnings per share and sales figures were reported as being worse than anticipated by the company.[5] Today, the S&P 500’s largest decline in stock was seen.[6]

The 11 S&P sectors saw nine increase, with Communication Services and Consumer Discretionary increasing by more than 1%.[7] A 1.8% decrease in Energy was recorded, and Health Care experienced a slight decrease.[8]

On the earnings front, US Foods Holding Corp. (NYSE: USFD), Applied Materials, Inc. (NASDAQ: AMAT) and The Southern Company (NYSE: SO) reported results.[0] In the last 24 hours, Bitcoin has seen a 8.5% gain, bringing it to a value of US$24,[9] It is anticipated that consumer prices will rise on a monthly basis in January, though it is predicted that the yearly rate of growth will decrease to 6.2 percent from 6.5 percent in December.

The Consumer Price Index (CPI) for the month of January was 6.4% higher than predicted on a year-over-year basis, while the monthly increase of 0.5% was in accordance with expectations.The core index, not including food and energy components, increased by 0.4% from the previous month, in line with what analysts were predicting.[1] Core inflation increased by 5.[1]

0. “Investor Optimism Improves Further Following Retail Sales Report By Benzinga” Investing.com UK, 16 Feb. 2023, https://uk.investing.com/news/stock-market-news/investor-optimism-improves-further-following-retail-sales-report-2917103

1. “S&P 500, Dow turn positive on retail sales, CPI data fallout; Nasdaq enjoys third-straight winning day” Proactive Investors USA, 15 Feb. 2023, https://www.proactiveinvestors.com/companies/news/1006250/s-p-500-dow-turn-positive-on-retail-sales-cpi-data-fallout-nasdaq-enjoys-third-straight-winning-day-1006250.html

2. “Dow Rockets 250+, Clawing Back Some of its Declines” InvestorsObserver, 13 Feb. 2023, https://www.investorsobserver.com/news/qm-news/8244349936548762

3. “S&P 500 cuts losses as easing Treasury yields lift tech By Investing.com” Investing.com, 15 Feb. 2023, https://www.investing.com/news/stock-market-news/sp-500-cuts-losses-as-easing-treasury-yields-lift-tech-3004549

4. “Investor Optimism Improves Further Following Retail Sales Report – Applied Mat (NASDAQ:AMAT), Airbnb (NAS” Benzinga, 16 Feb. 2023, https://www.benzinga.com/news/earnings/23/02/30937600/investor-optimism-improves-further-following-retail-sales-report

5. “Stock Market Indexes Pull Ahead In Final Hour; Etsy Posts Over 6% Gain” Investor’s Business Daily, 15 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/the-stock-market-climbs-out-of-morning-hole-stock-soars/

6. “Stock Market Closed Mixed; Nasdaq Broke Its Winning Streak” Investor’s Business Daily, 10 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/stock-market-on-track-for-a-down-week-medical-device-stock-shines

7. “Strong retail sales buoy Wall Street with tech leading gains. Crypto pops” CMC Markets, 15 Feb. 2023, https://www.cmcmarkets.com/en/news-and-analysis/strong-retail-sales-buoy-wall-street-with-tech-leading-gains-crypto-pops

8. “Dow, Nasdaq, S&P 500 overcome lingering Fed fears to end choppy session higher” Seeking Alpha, 15 Feb. 2023, https://seekingalpha.com/news/3936612-dow-nasdaq-sp-500-end-higher-despite-choppy-trading-as-fed-fears-linger

9. “Market Highlights: Big rally in US travel stocks, Bitcoin; and 5 ASX small caps to watch on Thursday” Stockhead, 15 Feb. 2023, https://stockhead.com.au/news/market-highlights-big-rally-in-us-travel-stocks-bitcoin-and-5-asx-small-caps-to-watch-on-thursday/