February 29, 2024
Finance

S&P 500 Eyes 5,000 After Uneventful CPI Revisions: Markets Wrap


(Bloomberg) — Wall Street got a bit of encouragement after an uneventful US inflation revision lifted stocks in early trading, with traders now shifting gears to next week’s data for clues on the Federal Reserve’s rate path.

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S&P 500 contracts signaled the benchmark gauge will top 5,000 after briefly hitting that mark in the final moments of Thursday trading. Treasury 10-year yields fluctuated near 4.17%. The dollar was little changed.

Read: US Revisions to Consumer Price Index: Summary (Table)

US inflation was about the same at the end of last year as initially reported after incorporating annual revisions, according to new data published Friday. Consumer prices excluding food and energy items rose at a 3.3% annualized rate in the final three months of 2023, matching the previous reading, Bureau of Labor Statistics data showed. Revisions to the headline figure were also minimal, though December’s monthly increase was marked down to a 0.2% advance instead of 0.3%.

Focus is shifting to January’s consumer-price index on Tuesday amid bets inflation eased further at the start of the year. Economists surveyed by Bloomberg expect the year-on-year inflation figure to drop to 2.9% in January, from 3.4% the previous month, which would be the lowest level since early 2021.

A speedy rally that sent US stocks on a record-setting spree is now close to triggering several sell signals, according to Bank of America Corp.’s Michael Hartnett.

The bank’s custom bull-and-bear indicator rose to 6.8 in the week through Feb. 7, Hartnett wrote in a note. A reading above 8 would suggest the bullish trend has run too far, flashing a contrarian signal to sell, the strategist said.

“Bear positioning in 2023 was markets’ best friend,” Hartnett said. But after investors bought the S&P 500 during last year’s 24% rally, that exposure is “flipping from tailwind to headwind.” He cautioned that “in bubbles, markets show little respect for positioning,” or for valuation. “They solely respect policy and real interest rates,” he said.

Corporate Highlights:

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  • Cryptocurrency shares climbed as Bitcoin advanced beyond $47,000.

  • Nvidia Corp.’s stock has rallied so much this year that it’s now threatening to overtake Amazon.com Inc. to become the fourth most valuable US company.

  • Expedia Group Inc. named Ariane Gorin as chief executive officer of the online travel company, succeeding Peter Kern, who has been in the role since 2020.

    • Separately, Expedia reported gross bookings of $21.7 billion in the fourth quarter, missing analysts’ average estimate of $22 billion.

  • PepsiCo Inc. gave a full-year sales forecast light of analysts’ estimates and reported a drop in volumes in the North America beverage and Quaker foods units.

  • Take-Two Interactive Software Inc., a video-game company, slashed its full-year net bookings forecast below consensus estimates.

  • Hermes sales surged at the end of last year as the Birkin bag maker thrived amid the slowdown in demand for luxury goods with its unique model driven by scarcity.

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.3% as of 8:56 a.m. New York time

  • Nasdaq 100 futures rose 0.4%

  • Futures on the Dow Jones Industrial Average rose 0.2%

  • The Stoxx Europe 600 rose 0.1%

  • The MSCI World index was little changed

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0782

  • The British pound was little changed at $1.2619

  • The Japanese yen was little changed at 149.37 per dollar

Cryptocurrencies

  • Bitcoin rose 4.8% to $47,505.01

  • Ether rose 3.7% to $2,515.52

Bonds

  • The yield on 10-year Treasuries advanced one basis point to 4.16%

  • Germany’s 10-year yield was little changed at 2.36%

  • Britain’s 10-year yield was little changed at 4.05%

Commodities

  • West Texas Intermediate crude rose 0.2% to $76.36 a barrel

  • Spot gold fell 0.3% to $2,028.11 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Alexandra Semenova and Julien Ponthus.

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©2024 Bloomberg L.P.



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