May 152024
 

Meme stocks continue to soar, and US equities closed higher on Biden’s China tariffs as markets wait on this morning’s CPI prints which are one of the most important data points the Fed will consider at their next meeting.

Headline inflation is expected to decrease 0.1% from March’s 3.5% to 3.4%.  Analysts also expect the large March increases in auto insurance and maintenance costs to reverse the trend in April.  Given weakening labor market data, rent inflation will also be in focus from the CPI numbers.

The Nasdaq closed at a new record high of 16,511, the first record high close since April 11.

The Producer Price Index released Tuesday morning showed wholesale prices increased 0.5% m/m in April versus 0.3% expected.  However, March’s PPI increase was revised lower to a decrease of 0.1% from a positive 0.2%.  Markets shrugged off the mixed PPI numbers.

AMC surged 120% before plunging back to a 30% gain.  GME was up over 100% before finishing up around 60%.

Premarket earnings include Dynatrace (DT) and Sportradar Group (SRAD).  Earnings after the bell include Cisco Systems (CSCO) and Grab (GRAB).

The economic calendar is full with focus on the 8:30am ET numbers: CPI, Retail Sales, and Empire State Manufacturing Index.  Other data includes Business Inventories and NAHB @ 10:00am ET, and Crude Oil Inventories @ 10:30am ET.  Fed Governor Michelle Bowman speaks in a fireside chat @ a Blockchain Summit in DC.

Volatility ticked higher on Tuesday’s bullish push higher.

No whale bias as overnight large trader volume was too light to be significant.

 

 Posted by at 4:43 am

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