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Major Wall Street indexes up modestly
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Tech leads sector gainers, energy weak
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Euro STOXX 600 index up ~0.7%
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Dollar, bitcoin, gold, crude all dip
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U.S. 10-Year Treasury yield dips to ~3.71%
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QUIET START AFTER A SLUGGISH WEEK (0956 EST/1456 GMT)
Major U.S. indexes are modestly higher in the early
stages of trading, with the Nasdaq coming off its first weekly
decline, and the S&P 500 its biggest weekly percentage decline
of the year last week, as investors tread lightly ahead of a key
inflation reading on Tuesday.
A dearth of economic data on Monday shifts the focus to
Tuesday's Consumer Price Index (CPI) reading for January.
Expectations call for a CPI to decrease to 6.2% on an annual
basis versus the prior 6.5% reading, while the month-over-month
reading is seen as rising by 0.5%, according to economists
polled by Reuters. On a core level, CPI is expected to slow to
5.5% annually from 5.7% but tick up by 0.4% from 0.3% on a
monthly basis.
The reading will help shape views for the path of the Federal Reserve's path of interest rate hikes as the central bank continues to try and quell high inflation. On Monday. Fed Governor Michelle Bowman said the central bank will need to continue to raise interest rates in order to get them high enough to reduce inflation to the Fed's target level of 2%.
Still, nearly all of the 11 major S&P sectors are higher, with the exception of energy . Tech is leading the way higher. Russell 1000 Growth is outperforming Russell 1000 value as U.S. yields are subdued.
Below is your market snapshot:
(Chuck Mikolajczak)
*****
S&P 500 FUTURES: FENCED IN BY FIBONACCI (0900 EST/1400 GMT)
E-mini S&P 500 futures appear to be using a number
of tightly packed Fibonacci retracement levels as support and
resistance. A range breakout may tip the balance:
After hitting an intraday high of 4,208.50, and ending at
4,191.50, on February 2, the futures stalled. This as they
battled the 76.4%-78.6% Fibonacci retracement zone of the
August-October leg down in the 4,178.61-4,197.15 area, the
September 13 high at 4,208.00, and the 23.6% Fibonacci
retracement of the March 2020-January 2022 advance at 4,215.08.
EScv1 sold off around 3.5% over the next 6 trading days into
their 4,060.75 February 10 low.
The futures now appear to be using the 61.8% Fibonacci
retracement of the August-October leg down at 4,055.57 as
support.
In overnight action into Monday, the futures dipped as low
as 4,078.75 before snapping back. They are now up slightly
around 4,105.
Thus, traders are watching for a breakout of essentially,
the 4,055-4,209 area to potentially signal in which direction
the futures will next ratchet up or down.
The August 16 high was at 4,377.50.
The January 31 low was at 4,007.50, and the 50 and 200-DMAs
are now down in the 3,991-3,886 area.
That said, the futures are still making higher-highs and
higher-lows off their mid-December/early-January troughs,
suggesting a still intact uptrend.
(Terence Gabriel)
*****
FOR MONDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400 GMT
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
