(Bloomberg) — An uneventful U.S. inflation update sends Wall Street higher in early trading, with traders looking to next week’s data for clues on the Federal Reserve’s interest rate path. Shifting gears.
Most Read Articles on Bloomberg
The S&P 500 index indicated the benchmark gauge would break above 5,000 after briefly reaching that mark in late trading Thursday. The yield on the 10-year US Treasury note fluctuated around 4.17%. The dollar was little changed.
Read: U.S. Consumer Price Index Revisions: Overview (Table)
New data released Friday showed U.S. inflation was about the same as originally reported at the end of last year, incorporating annual revisions. Consumer prices, excluding food and energy items, rose at an annual rate of 3.3% in the final three months of 2023, consistent with the previous reading, Bureau of Labor Statistics data showed. Revisions to the headline numbers were also minimal, but the month-on-month increase in December was only 0.2% instead of 0.3%.
Focus has shifted to January's consumer price index on Tuesday amid growing expectations that inflation will ease further at the start of the year. Economists surveyed by Bloomberg expect year-over-year inflation to fall to 2.9% in January from 3.4% the previous month, the lowest level since early 2021.
The rapid rally that sent U.S. stocks to a record high is now likely to trigger some sell signals, according to Bank of America's Michael Hartnett.
The bank's proprietary bull and bear index rose to 6.8 in the week ending Feb. 7, Hartnett wrote in a note. According to the strategist, a reading above 8 suggests that the bullish trend has gone too far and is sending a contrarian signal to sell.
“2023 bear market positioning has been the market's best friend,” Hartnett said. But after investors bought the S&P 500 during last year's 24% rally, that exposure is “shifting from a tailwind to a headwind.” “In a bubble, the market has little respect for positioning or valuation,” he warned. “They only respect policy interest rates and real interest rates,” he said.
Company highlights:
Listen to the Big Take podcast on iHeart, Apple Podcasts, and Spotify. Read the transcript here.
-
Cryptocurrency stocks rose as Bitcoin rose above $47,000.
-
Nvidia's stock price has risen significantly this year, and it is now at risk of overtaking Amazon.com as the fourth-largest U.S. company by market capitalization.
-
Expedia Group has appointed Ariane Gorin as chief executive officer of the online travel company, replacing Peter Kahn, who has held the role since 2020.
-
Separately, Expedia reported fourth-quarter gross bookings of $21.7 billion, below analysts' average estimate of $22 billion.
-
-
PepsiCo Inc. issued its full-year sales forecast, taking into account analyst expectations, and reported lower volumes in its North American beverage and Quaker food divisions.
-
Video game company Take-Two Interactive Software Inc.'s full-year net reservations forecast fell short of consensus expectations.
-
Sales of Hermès soared late last year as the maker of Birkin bags achieved growth with unique models driven by scarcity even as demand for luxury goods slumped.
The main movements in the market are:
stock
-
As of 8:56 a.m. New York time, S&P 500 futures were up 0.3%.
-
Nasdaq 100 futures rose 0.4%
-
Dow Jones Industrial Average futures rose 0.2%.
-
Stoxx European 600 rose 0.1%
-
MSCI World Index little changed
currency
-
Bloomberg Dollar Spot Index little changed
-
The euro was almost unchanged at $1.0782.
-
The British pound was almost unchanged at $1.2619.
-
The Japanese yen remained almost unchanged at 149.37 yen to the dollar.
cryptocurrency
-
Bitcoin rises 4.8% to $47,505.01
-
Ether rose 3.7% to $2,515.52.
bond
-
The 10-year Treasury yield rose 1 basis point to 4.16%.
-
German 10-year bond yield remains unchanged at 2.36%
-
UK 10-year bond yield remains unchanged at 4.05%
merchandise
-
West Texas Intermediate crude rose 0.2% to $76.36 per barrel.
-
Spot gold fell 0.3% to $2,028.11 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Alexandra Semenova and Julien Ponthus.
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
