From Nasdaq: 2025-02-12 19:18:12

Stock indexes are down today, with the S&P 500, Dow Jones, and Nasdaq falling to 1-week lows due to bond yields surging after US Jan consumer prices rose more than expected. Jan CPI accelerated to +3.0% y/y, ex-food and energy to +3.3% y/y. Earnings results are mixed, with CVS Health and Gilead Sciences performing well. US MBA mortgage applications rose +2.3% in the week ended February 7.

The markets are focusing on US Jan PPI final demand report and Jan retail sales later this week. Earnings season is ongoing, with 77.6% of S&P 500 companies beating estimates. The chance of a -25 bp rate cut at the next FOMC meeting is at 2%. Overseas markets are up, with Euro Stoxx 50 reaching a 24-year high.

Interest rates are down, with 10-year T-notes falling to a 3-1/2 week low and yields rising to 4.652%. European bond yields are also higher. Italy’s Dec industrial production saw a decline of -3.1% m/m. The ECB is cautious about cutting rates due to inflation concerns, with swaps pricing in a 100% chance of a -25 bp rate cut.

US stock movers include Westinghouse Air Brake, Waters, Biogen, Teradata, Zillow Group, Lyft Inc, Vertiv Holdings, Kraft Heinz, Martin Marietta Materials, CVS Health, Gilead Sciences, Generac Holdings, Edwards Lifesciences, DoorDash, Tesla, Super Micro Computer, NXP Semiconductors NV, and Confluent. Earnings reports for February 12, 2025, are expected from various companies.



Read more at Nasdaq: Stocks Tumble as Sticky US Inflation Keeps Fed on Hold