An Overview of
The consumer price index (CPI) in the US rose 0.5% month-over-month in January, the most in three months, coming in-line with the market expectations.[0] The annual inflation rate in the US eased to 6.4% in January from 6.5% in December, while core prices, excluding the volatile food and energy sectors, showed a 5.6% increase from last year.[1] Excluding volatile items like food and energy, the core reading decreased for the fourth month in a row to 5.6%.[2]
On Thursday, the yield during the day dropped to 3.33%, the lowest it has been since September 13th.[3] The 10-year Treasury prices increased slightly, causing yields to fall to 3.73% from 3.75% on Friday. The yield on two-year US treasury bonds rose by nine basis points to 4.62[4]
Crude oil futures have seen a decrease of $0.60, bringing the price per barrel to $79.12, after experiencing an increase of $1.66 last Friday to $79.72.[5] Gold futures have dropped $4.70 to $1,869.80 an ounce, after closing at $1,874.50 the prior session.[5] On Tuesday, silver decreased by 0.5%, settling at $21.74, while copper increased by 0.1%, closing at[6]
Palantir shares surged after Q4 earnings beat, data analytics outlook. Coca-Cola edged higher ahead of Q4 earnings will price plans in focus and Ford plans deep European job cuts amid renewed EV investment focus.[7]
The outlook of
[8] US stocks have edged modestly higher at the open amid cautious trading ahead of tomorrow’s key inflation reading. Tuesday saw U.S. equity futures move up slightly, with the dollar going down against other currencies and Treasury yields remaining steady. Investors were on the watch for the potentially influential inflation report to come out before market opening.
Bulls of the US dollar were given a boost in confidence as anticipation rose that interest rates would stay higher than originally expected.[9]
0. “Dow Jumps Over 300 Points, Dollar Surges in Midday Trading” msnNOW, 13 Feb. 2023, https://www.msn.com/en-us/money/markets/dow-jumps-over-300-points-dollar-surges-in-midday-trading/ar-AA17radT
1. “S&P 500, Nasdaq, Dow ride high Monday as markets await new CPI data” Proactive Investors USA, 13 Feb. 2023, https://www.proactiveinvestors.com/companies/news/1005920/s-p-500-nasdaq-dow-ride-high-monday-as-markets-await-new-cpi-data-1005920.html
2. “Market Caution Returns on Hot US CPI Data” Action Forex, 15 Feb. 2023, https://www.actionforex.com/contributors/fundamental-analysis/486470-market-caution-returns-on-hot-us-cpi-data/
3. “Dow Jones Futures Fall: Stock Market Rally Signals It’s No Bear Run, But Don’t Get Complacent | Investor’s Business …” Investor’s Business Daily, 6 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-rally-signals-its-not-a-bear-run-what-to-do-now/
4. “S&P 500, Nasdaq, Dow end choppy session with mixed performance after CPI data (SP500)” Seeking Alpha, 14 Feb. 2023, https://seekingalpha.com/news/3935955-cpi-data-leads-to-choppy-trading-mixed-finish-for-sp-500-nasdaq-dow
5. “Futures Pointing To Initial Strength On Wall Street” RTTNews, 13 Feb. 2023, https://www.rttnews.com/3343714/futures-pointing-to-initial-strength-on-wall-street.aspx
6. “Modestly higher opening for the US stock indices” ForexLive, 13 Feb. 2023, https://www.forexlive.com/news/modestly-higher-opening-for-the-us-stock-indices-20230213/
7. “Stocks Edge Higher, Inflation, Palantir, Coca-Cola, Ford – Five Things To Know” Henry Herald, 14 Feb. 2023, https://www.henryherald.com/arena/stocks-edge-higher-inflation-palantir-coca-cola-ford—five-things-to-know/article_59bfa082-d0a3-5030-ab30-695d4dcc4a30.html
8. “Dow Jones, Nasdaq, S&P 500 weekly preview: Use Q1 rally to cut stocks exposure By Investing.com” Investing.com, 13 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-jones-nasdaq-sp-500-weekly-preview-use-q1-rally-to-cut-stocks-exposure-3001760
9. “Market caution returns on hot US CPI data” Financial Mirror, 15 Feb. 2023, https://www.financialmirror.com/2023/02/15/market-caution-returns-on-hot-us-cpi-data