Last Updated: 4:15 PM EST
Stock indices finished today’s trading session in the green following the release of key inflation data. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 2.5%, 1.69%, and 1.04%, respectively.
Earlier today, the U.S. Bureau of Labor Statistics put out its Producer Price Index (PPI) report, which measures inflation among producers and is considered a leading indicator of consumer inflation. July’s figures came in at 2.2% year-over-year and 0.1% month-over-month.
In addition, core PPI, which removes food and energy costs, saw yearly and monthly figures of 2.4% and 0.0%, respectively. All of these metrics were below expectations and lower than last month’s results, which provides further evidence that inflation is cooling.
As a result, analysts at Piper Sandler still believe that the S&P 500 will reach 5,800 by the year’s end but pointed out that volatility will likely persist until the yen carry trade stabilizes and investors feel confident the correction phase is over.
A carry trade involves borrowing in a currency with low interest rates, like the yen, and investing in assets with higher returns. Earlier this year, the yen hit record lows against the dollar but has recently gained strength, which led to the recent volatility as many investors were forced to liquidate their positions.
Nevertheless, Piper Sandler expects that popular stock averages will fluctuate around their 50- and 200-day moving averages, with small and mid-cap stocks likely to outperform as the market broadens in the latter half of the year.
The firm also shared key technical levels for the S&P 500 to watch. For resistance, they pointed to 5,358 (last week’s high), 5,400, 5,446 (50-day moving average), and 5,500. For support, the levels are 5,300 (Friday’s low), 5,250 (March high), 5,200, 5,119 (last week’s low), and 5,032 (200-day moving average).
First Published: 4:51 AM EST
U.S. futures traded higher on Tuesday morning ahead of the release of key inflation data this week. Investors are looking to gain insights about the U.S. economy’s health. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.71%, 0.47%, and 0.34%, respectively, at 4:15 a.m. EST, August 13.
Yesterday’s trading session was dull due to the absence of any major earnings reports and economic data releases. The Dow Jones index declined 0.36%, and the S&P 500 index remained flat. Meanwhile, the Nasdaq Composite was up by 0.21%.
In major stock market news, Nvidia (NVDA) gained 4% after analysts at Bank of America (BAC) named it a top pick. Further, KeyCorp (KEY) closed 9.1% higher following a $2.8 billion investment from Bank of Nova Scotia (BNS). However, JetBlue Airways (JBLU) declined 20.7% after announcing plans to raise over $3 billion in debt, triggering credit downgrades from S&P Global (SPGI) and Moody’s (MCO).
Among today’s key economic reports, investors are looking forward to the release of the wholesale inflation data represented by the Producer Price Index (PPI). Experts expect PPI to have increased by 0.2% in July, in line with the previous month.
On the earnings front, Hut 8 Mining (HUT), Home Depot (HD), Nu Holdings (NU), On Holding (ONON), and Sea (SE) will release their quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was flat at the time of writing, floating near 3.91%. At the same time, WTI crude oil futures trended lower, hovering near $79.66 per barrel as of the last check.
Elsewhere, European markets opened higher today as investors awaited the release of the U.S. and U.K. inflation data points.
Asia-Pacific Markets Traded Higher on Tuesday
Asia-Pacific indices traded in the green today, with Japan’s indices leading the way. The continued decline in the Japanese yen on Tuesday helped lift market sentiment in the region. This is because a weaker yen benefits Japanese exporters by enhancing their profits and also attracts more tourists to Japan.
Hong Kong’s Hang Seng index was up 0.3%. Further, China’s Shanghai Composite and Shenzhen Component indices ended higher by 0.34% and 0.43%, respectively. At the same time, Japan’s Nikkei and Topix indices gained 3.45% and 2.83%, respectively.
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