Major indices open lower after the higher-than-expected CPI data
The major
indices are giving up some of their gains from yesterday. Recall from yesterday the:
- Dow industrial average up 305.26 points
- S&P index up 65.64 points
NASDAQ index up 295.93 points- Russell 2000 up 38.12 points
Near the open today, the major indices are now showing
- Dow industrial average -250 points or -0.7% at 35515
- S&P index -47 points or -1.02% at 4540.67
- NASDAQ index -204 points or -1.41% of 14288
- Russell 2000-26 points or -1.26% 2057.59
In between yesterday and today, CPI inflation rose higher than expected at 7.5% year on year. That’s a new four decade high, and higher than the 7.3% expected.
Technically, the S&P has moved back below its 100 day moving average currently at 4573.76 (see blue line in the chart above). Last Wednesday, the price also closed above its 100 day moving average only to gap lower the next day. There should be resistance against the 100 day MA again. On the downside, the 50% of the 2022 range comes in at 4520.62. That is the next downside target on the daily chart. Move below that level – and stay below – would have traders refocused on the 200 day MA at 4451.32 (green line on the chart above).
in other markets:
- Gold is trading down one dollar or -0.05% at $1831.42
- Silver is up $0.11 or 0.52% at $23.42
- crude oil is trading up $1.20 at $90.80
- Two year yield is at 1.477%. The high yield reached 1.497
- 10 year yield is at 1.989% after briefly trading above the 2% level at 2.001%
- 30 year yield is at 2.283% after trading at 2.297% at the days highs. The U.S. Treasury will auction off $30 billion of 30 year bonds at 1 PM ET. The three and 10 year note auctions will both met by strong international demand. Will those buyers come in after the stronger than expected CPI data today.