U.S. stocks traded higher Wednesday morning despite news of continued inflation.
The Consumer Price Index, a key benchmark of price inflation, showed 5.4% year-over-year inflation for July.
The question now, will the Federal Reserve to step up its “taper talk” and, if so, what effect will that have on the stock market?
U.S. stock futures were mixed ahead of key inflation data, as investors assessed the likelihood of Fed’s tapering.
U.S. Dollar and Treasuries
U.S. Treasury yields were slightly higher in premarket trading. The yield on 10-year U.S. treasuries rose one basis point. The dollar strengthened against a basket of major currencies.
|U.S. Dollar Index (DXY):||92.90||-0.17||(-0.18%)|
|U.S. 1 Year Treasury Bill||0.078%||-0.001||0.079%|
|U.S. 2 Year Treasury Note||0.245%||0.004||0.240%|
|U.S. 5 Year Treasury Note||0.842%||0.015||0.828%|
|U.S. 10 Year Treasury Note||1.357%||0.000||000%|
|U.S. 20 Year Treasury Bond||1.919%||0.011||1.908%|
|U.S. 30 Year Treasury Bond||2.011%||0.011||2.000%|
Stocks To Watch
Biotech company CohBar announced positive results from the Phase 1a/1b study of CB4211, developed for the treatment of nonalcoholic steatohepatitis (NASH) and obesity. CB4211, a mitochondria-based therapeutic, appears well-tolerated with no serious adverse effects.
Fast food company Good Times Restaurants announced it intends to purchase 1,413,000 of its own stock at $4.60 per share, for a total amount of $6.5 million. The company also reported positive earnings results for the third quarter of 2021.
Sphere 3D stock rebounded after losing almost Tuesday’s regular trading hours as traders were taking profit. The stock surge commenced when the company announced it acquired exclusive rights to 220,000 bitcoin mining assets.
Virgin Galactic Holdings dropped after the company announced it will raise the ticket price for rides to space to $450,000 a seat.
|Sphere 3D Corp||ANY||$4.67||+0.390||+9.11%||410.40K|
|Virgin Galactic Hol.||SPCE||$30.03||-1.3||-4.15%||376.60K|
Commodities To Watch
Oil dropped on reports that the White House will put pressure on OPEC for more production to combat rising prices. Gold strengthened.
|WTI Crude Oil||$67.43||-1.26%|
|Brent Crude Oil||$69.84||-1.12%|
Cryptocurrencies rose in premarket trading, despite the lost lobbying battle in the U.S. Senate. Billionaire investor Mark Cuban warned the Senate against stopping the crypto “growth engine,” linking it to “e-commerce in 1995.” Ethereum is rising above $3,000.
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