Mild CPI Means All Time Closing Highs | Wall Street Today

Moomoo Recap US wrote a column · May 16, 2024 04:24

Mild CPI Means All Time Closing Highs | Wall Street Today

Meme stocks are Pulling back after a two day rush! Meanwhile, the S&P 500 broke 5,300 and joined the Nasdaq and Dow Jones ending the day at new record highs after the CPI print.

Just after 4 PM EST, the $S&P 500 Index traded up 1.17% past an all time high. The $Nasdaq Composite Index opened, setting an all-time closing high, and kept up a 1.40% climb to finish the day at 16,742.39.

The $Dow Jones Industrial Average (.DJI.US)$ reached a record close 39,908.07, up 0.88%.

MACRO

In macro, CPI numbers for April came in right at expectations. Prices advanced 3.4%, and core prices advanced 3.6% in April compared to a year ago, and 0.3% month over month.

Tuesday, Producer Price Index numbers came in high, climbing about 0.5% month over month compared to expectations of 0.3%, and core expectations of 0.2%. Powell spoke Tuesday morning, and he said the oft repeated "higher for longer," mantra, despite a PPI print that he called "mixed."

This week, investors can expect CPI prints Wednesday. Multiple Federal Reserve Governors and FOMC members will speak, and investors will look for comments on rates and monetary policy.

Weekly Jobless Claims came in high at 231k last Thursday morning, inspiring new hope for rate cuts, with another weekly print to watch this Thursday.

The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ was 4.73, the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ was 4.35.

SECTORS

Crude Oil traded higher Wednesday after declining before the EIA inventories print, while . Bitcoin climbed 8%, sending $MARA Holdings (MARA.US)$ up 3%, $Strategy (MSTR.US)$ up 15%, while $Coinbase (COIN.US)$ climbed 8%. Oil and Gas companies as a sector fell 1%.

The EIA reported USA Crude Oil Inventories decreased by 2.5M vs. decrease of 0.4M Est after a drawdown of 1.362M barrels ast week. "It also appears that the EIA will be indicating a Cushing stock draw that could offer some slight support to the WTI curve," Ritterbusch says in a note.

Gold and Silver futures climbed 1.23%.

MOOVERS

Wednesday, $Cisco (CSCO.US)$ reported Q3 GAAP earnings per share of $0.82 on revenue of $12.52B, compared to estimates of $0.82 on revenue of $12.7B according to S&P Global.

$GameStop (GME.US)$ pulled back 18%, after a 60% Tuesday rally, and a 296% rally for the past five days.

$AMC Entertainment (AMC.US)$ pulled back 20% after a 32% increase at Tuesday's close. AMC has raised $250 million from its "at-the-market" offering of 72.5 million shares, according to a regulatory filing with the US Securities and Exchange Commission. $SunPower (SPWR.US)$ fell 29%, $BlackBerry (BB.US)$ fell 6% after a 12% climb. $NIO Inc (NIO.US)$ fell by 7% after climbing about 14% in two days. Meanwhile, $NVIDIA (NVDA.US)$ and $Palantir (PLTR.US)$ climbed 3.58% and 1.07%, alongside $Robinhood (HOOD.US)$+2.77%.

$Super Micro Computer (SMCI.US)$ climbed 15%, leading the S&P 500 as the top gainer, and the Semiconductor sector higher.

$Albemarle (ALB.US)$ fell about 5.8%, the lowest Reacher on the S&P 500. The stock was singled out as one of the most shorted stocks on the index, and pulled back after other shorted meme stocks fell.

$Petroleo Brasileiro SA Petrobras (PBR.US)$ led a 1% decline in the oil sector, falling 6.7% after its earnings report also announced the exit of CEO Jean Paul.

$GoodRx (GDRX.US)$, a prescription discount company, said Wednesday that it has signed a direct contracting agreement with supermarket chain $The Kroger (KR.US)$ to deliver lower prescription prices at over 2,200 Kroger family pharmacy locations in the US.

$Petco Health and Wellness (WOOF.US)$ gained more than 15% intraday Wednesday after the pet-store chain hired a former executive of $Lululemon Athletica (LULU.US)$ and $Gap Inc (GPS.US)$ as executive chairman of its board.

WORD FROM THE HEARD: Mooers, what are you watching?
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