Shares are rising again as investors weigh in on new inflation data

U.S. stocks rose on Tuesday as investors from Washington rated up new inflation data, pulling back sales that started the week, pushing prices further up to a new 40-year high in March.

The S&P 500 was up 0.7%, and the Dow traded up approximately 130 points at the start of trading. The Nasdaq Composite rose 1.1% after falling sharply on Monday. Meanwhile, treasury yields were slightly lower, but the 10-year yield was above 2.7%, the highest level since January 2019.

The move follows a low day on Wall Street earlier this week amid concerns about a recession such as the war in Ukraine and the lockout of the Govt-19 in China and a more aggressive Federal Reserve outlook. Investors are looking forward to the start of the earnings season and additional economic data for the release of this holiday-short trading week.

Markets weigh the latest level of inflation in the US, with the Consumer Price Index (CPI) of the Labor Statistics Office (BLS) rising 8.5% in March. This figure represents the fastest growth since December 1981 and follows an annual increase of 7.9% in February. According to Bloomberg data, consensus economists expect 8.4% growth in March.

Red-hot print is becoming investors Fight the possibility Central bank officials will be very active in combating inflation Minutes of hockey reading last week from the central bank’s March meeting “Many” policymakers last month suggested that the benchmark would “like a 50 basis point increase in interest rates”.

“I think the federal government is already firmly on the rise,” Charles Schwab’s chief global investment strategist Jeffrey Clintof told Yahoo Finance Live on Monday. CPI data on Tuesday “will not have that much of an impact [on the markets] Let’s say a few months ago.

While investors are largely prepared for the possibility of a greater fight by Fed policymakers in their efforts to combat inflation, concerns have been raised that increasing monetary tightness could lead to an economic contraction. Strategists have begun to discuss the possibility of a recession in recent weeks, especially as economists at Deutsche Bank recently warned that central bank activity could slow growth in the second half of 2023.

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Some have said that making such a call is very soon but possible at the table.

“I would say that by the end of this year the economy will be moving closer to recession, very close to the currency cycle,” said Trafus and Mellon, chief economist and macro strategist. Vince Reinhart at Yahoo Finance Live.

12:39 pm ET: JPMorgan shares are down nearly 16% from year to year

That’s JPMorgan The first mega bank to release quarterly results on Wednesday This marks the beginning of the revenue season. Analysts estimate the company’s earnings per share (EPS) at $ 2.72, according to Bloomberg’s consensus.

Amid concerns about US banking relations with Russia and the recession, the financial broader market has lagged meaningfully from year to date. His Recent annual letter to shareholdersJP Morgan CEO Jamie Dimon warned that the bank would lose $ 1 billion over time as a result of the war.

While the main bank has said it is not concerned about direct exposure to Russia, the company is concerned about the “secondary and side effects” of the crisis and sanctions on many companies and countries.

Shares of JP Morgan traded down 0.3% at $ 132.64 in intraday trading, up 12:37 pm ET. The stock is down 15.8% year-on-year.

12:18 pm and: Lulu Lemon climbs after expansion of trade and resale program

Shares of Athlete Clothing Dealer Lulu Lemon (Lulu) Rose 6% from January 3, following the announcement that the company would expand its business and resell the “Lulu Lemon Like New” program nationwide.

Lululemon Like New will be available to customers across the United States on Earth Day, April 22, after a successful two-state pilot in 2021. The retailer will reinvest 100% of the profits in support of its offensive agenda, including making 100% of the products sustainable. Materials and utility solutions by 2030.

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The LULU was up 4.4% at $ 384.80 as of 12:14 pm ET, may be up by an update date in broader markets after the CPI data came in lower than expected, with the key figure falling below consensus numbers.

The S&P 1500 consumer preference index rose 2.4%.

9:30 am ET: Shares move up despite red-hot inflation report in March

Here are the key moves in the markets during the opening hours on Tuesday:

  • S&P 500 (GSPC): +28.07 (+ 0.64%) to 4,440.60

  • Dove (DJI): +100.67 (+ 0.29%) to 34,408.75

  • Nasdaq (IXIC): +162.91 (+ 1.21%) to 13,574.87

  • RawCL = F): + $ 4.36 (+ 4.62%) to $ 98.65 a barrel

  • Gold (GC = F): + $ 25.20 (+ 1.29%) to $ 1,973.40 per ounce

  • 10 year treasury (DNX): -6.1 bps 2.7190% Yield

8:35 am and: March CBI 8.5% higher than expected last year

American consumers Higher fees were charged for various goods and services in March Compared to the previous month, supply and demand disruptions continued as price levels throughout the economy continued to rise.

According to a recent report released by the Bureau of Labor Statistics (PLS), the Consumer Price Index (CPI) rose by 8.5% in March compared to the same month last year. This marks the fastest rise since December 1981. This was followed by an annual increase of 7.9% in February. According to Bloomberg data, consensus economists expect 8.4% growth in March.

While there are no definite signs of a peak in inflation, members of the Federal Reserve have stepped up their rhetoric in using monetary policy tools to curb rapidly rising prices. Last week, the central bank’s governor, Lale Brinard, said it would reduce inflation “Our most important task” San Francisco Fed President Mary Daley, High Inflation “Harm like not having a job.

7:10 am and: Deals on S&P 500, Dow and Nasdaq flats while investors wait for the CPI axis

Here’s how key indices work in futures trading ahead of Tuesday’s opening:

  • S&P 500 Futures (ES = F): +1.25 points (+ 0.03%) to 4,410.25

  • Dow Futures (YM = F): -1.00 points (-0.00%) to 34,218.00

  • Nasdaq Futures (NQ = F): +14.25 points (+ 0.10%) to 14,014.25

  • RawCL = F): + $ 3.81 (+ 4.04%) to $ 98.10 a barrel

  • Gold (GC = F): + $ 10.30 (+ 0.53%) to $ 1,958.50 per ounce

  • 10 year treasury (DNX): +0.00 bps to earn 2.7800%

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6:40 am ET: US small business sentiment declines as inflation rises

Levels of confidence among Small business owners across the country fell further in MarchAnd a large number of mom and pop-shop operators have declared inflation as their most important concern, a survey on Tuesday shows.

The National Federation of Independent Businesses said its small business confidence index fell 2.4 points to 93.2 last month. This represents the third consecutive month of measurements below the 48-year average of 98.

Of those who responded, 31% identified inflation as their most important problem, up 5 points from the February survey. This figure is the largest share of participants who have referred to inflation as their biggest concern since the first quarter of 1981, and shifting concerns about “labor quality” to the first problem facing small businesses.

High inflation, massive fiscal stimulus and low interest rates caused by the deficit have been squeezing the economy in recent months.

6:10 pm and Monday: Stock futures change slightly ahead of Tuesday’s inflation data

Here is where the markets will trade before Monday night’s session:

  • S&P 500 Futures (ES = F): +2.75 points (+ 0.06%) to 4,411.75

  • Dow Futures (YM = F): +29.00 points (+ 0.08%) to 34,248.00

  • Nasdaq Futures (NQ = F): +9.75 points (+ 0.07%) to 14,009.75

  • RawCL = F): + $ 0.97 (+ 1.03%) to $ 95.26 a barrel

  • Gold (GC = F): + $ 9.30 (+ 0.48%) to $ 1,957.50 per ounce

  • 10 year treasury (DNX): +6.7 bps to earn 2.7800%

A trader works on the New York Stock Exchange (NYSE) trading platform in Manhattan, New York, USA on April 11, 2022. REUTERS / Andrew Kelly

Alexandra Semanova is a Yahoo Finance correspondent. Follow her on Twitter @alexandraandnyc

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