MARKETS TODAY March 14th, 2023 (Vica Partners)
Happy Tuesday!
Yesterday major US indices ended the session mixed with the S&P 500 close to breakeven. The Nasdaq, Fang+ and Tech sector all ended the day higher. The Russell 2000 declined by 1.6%, dropping in-step with the financials.
S&P futures were trading higher in premarket on optimism that there might not be interest rate hike next week. Early in session headline CPI and Core annual CPI came in-line with estimates as inflation eased for an eighth straight month in February. At closing, the major Indices finished up, with Nasdaq and NYSE FANG leading. All 11 of the S&P 500 sectors were higher with Information Technology and Communication Services outperforming. Yields reversed from yesterdays trend we sharply up. Bitcoin exceeded $26k at its high today.
Takeaways
- Markets factor in some reprice today on possible hike delay next week
- Headline CPI and Core annual CPI in-line with estimates
- Indexes finished higher, Nasdaq and NYSE FANG lead
- Yields rise
- All 11 S&500 sectors higher: Information Tech, Communications outperform
- Financial Sector recovers, +1.58%
- Fear & Greed index moderated from Extreme Fear to Fear
- Bloomberg Commodity Index flat
- Crude Oil Futures down, >3.5%
- Bitcoin, up +20% this week
- USD Index, -down
Last word, Treasury yield rose briskly today, as economists are for sure closely watching the 2/10 spread in inverted curve. We do however have optimism in the markets this Week as inflation worries and Fed hikes diminish- MK
Sectors/ Commodities/ Treasuries
Key Indexes (50d, 100d, 200d)
S&P Sectors
- All 11 S&P 500 Sectors higher: Information Technology 2.19%, Communication Services 1.88% and Financials 1.58%, outperform/ Consumer Staples 0.65% and Energy 0.76, underperform
Commodities
US Treasuries
Economic Data
US
- NFIB Optimism index; period Feb., act 90.9, fc 90.0, prev. 90.3
- Consumer price index; period Feb., act 0.4%, fc 0.4%, prev. 0.5%
- Core CPI; period Feb., act 0.5%, fc 0.4%, prev. 0.4%
- CPI (year over year); act Feb., act 6.0%. fc 6.0%, prev. 6.4%
- Core CPI ((year over year); period Feb., act 5.5%, fc 5.5%, prev. 5.6%
Summary – Inflation eased for an eighth straight month in February as a slowing rise in food costs offset gasoline prices and rent. Consumer prices increased 6% from a year earlier, down from 6.4% in January and a 40-year high of 9.1% in June, the smallest annual gain since September 2021.
Tomorrow; Retail sales, PPI, Manufacturing and Inventories
News
Company News
- Exclusive: Semiconductor manufacturer Infinera explores sale – Reuters
- JPMorgan, other big U.S. banks flooded with new clients post SVB collapse- Reuters
- Novo Nordisk to slash US insulin prices, following move by Eli Lilly – Reuters
Central Banks/Inflation/Labor Market
- Wall Street ends green as inflation cools, bank jitters ebb – Reuters
- U.S. Treasury says record FDIC cash draw won’t affect debt ceiling ‘X-date – Reuters
Energy
- Energy Chief Defends Allowing Alaska Oil Drilling – Bloomberg
- Crude Oil Inventories Build But Products Take A Tumble – Oilprice.com
China
- China reopening borders to foreign tourists for first time since Covid erupted – BBC
Market Outlook and updates posted at vicapartners.com
