Investors are actually bidding markets higher amid news of the hottest inflation read in 13 years, and biggest jump in food and energy prices in 29 years.
A logical person might think, ‘gee, the Fed is going to finally have to do SOMETHING, to help curb this ever-increasing inflation.’ But, that would be assuming Fed Governors are logical.
Fed officials, I’m afraid, are not.
As such, the market anticipates the Fed will (once again) do nothing…
and THAT is lending some significant support to early trading. U.S. stock indices were all higher at the start of trading, despite the inflationary read on CPI. Bitcoin is back above $37,000.
Part of the thinking contributing to the current rise in equities is that, if inflation exists (and it most definitely does) than asset prices…including stock prices, MUST be bid higher since these assets are priced in dollars and it will, after all, take that many more dollars to purchase them.
On Thursday morning, the U.S. Bureau of Labor Statistics release its highly anticipated Consumer Price Index (CPI). The CPI jump 5.0%, the highest spike in nearly 13 years.
U.S. Dollar and Treasuries
10-year Treasury yields increased slightly while the dollar was slightly lower.
- U.S. Dollar Index (DXY): 90.04, -0.09%
- 10-year Treasury yield: 1.517%
- 2-year Treasury yield: 0.157%
Stocks To Watch
Shares of a U.S.-based biotech company Ocugen dropped 40% after news of insider selling. Ocugen CEO Shankar Musunuri sold an additional 7,758 shares on Monday, after news studies question the efficacy of its COVAXIN vaccine. The CEO previously sold 195,809 stocks on May 3rd, after the company announced COVAXIN was effective against the Brazilian variant of the virus.
GameStop released better-than-expected earnings results, as the company continues its move to e-commerce. Sales rose 25% in the first quarter, generating a revenue of $1.28 billion. The company lost 45 cents per share, versus the expected 84 cents. However, shares still dropped, as the company announced a potential offering of as much as 5 million shares.
Wendy’s is slightly up in premarket trading after losing much of its meme-stock gains. However, the company is still trading above its earlier baseline of $23 per share.
AMC dropped slightly in premarket trading, after falling 10% on Wednesday.
Commodities To Watch
Oil rallied — with West Texas Crude is back above $70.
- WTI crude: $70.43, +0.67%
- Brent crude: $72.71, +0.69%
- Gold: $1,896.60, +0.10%
The global crypto market cap increased by 6.04% in the last 24 hours. Bitcoin is back above $37,000, after briefly falling below $32,000 on Tuesday.
- BTC: $37,764.76, +6.24%
- ETH: $2,568.56, +2.40%
- DOGE: $0.3369, +2.70%
LTC: $171.10, +6.88%