*
Main U.S. indexes drop ~1%
*
All 11 S&P sectorsd lower: real estate weakest group
*
Euro STOXX 600 index off ~0.3%
*
Dollar index up, gold dips; crude, bitcoin edge up
*
U.S. 10-Year Treasury yield rises to ~3.85%
Welcome to the home for real-time coverage of markets brought to
you by Reuters reporters. You can share your thoughts with us at
INFLATION DATA SENDS STOCKS LOWER IN EARLY TRADE (1010
EST/1510 GMT)
U.S. stocks stumbled out of the starting gate on
Thursday, as the latest reading on inflation showed prices
remain stubbornly high, raising concerns the Federal Reserve may
need to be more aggressive in hiking rates to tamp down higher
prices.
The January reading of
producer prices
(PPI) rose 0.7% last month after a 0.2% decline in
December, while on a year-over-year basis, PPI climbed 6.0%,
well above expectations for a 0.4% and 5.4%. The PPI data comes
on the heels of a reading on consumer prices (CPI) earlier this
week.
A reading of initial jobless claims showed the labor market remains solid however, although a
gauge of manufacturing
in the Mid-Atlantic region unexpectedly plunged.
"Both inflation readings this week point to the stickiness of inflation and that the fight isn’t over, especially when considering today’s PPI reading was the highest month-over-month increase since early summer. And if you add in that jobless claims declined suggesting the labor market remains tight, it shouldn’t be a surprise to see the market take a breather as hopes of a dovish Fed in the coming months fade," said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office in New York. "Bottom line is investors should recognize inflation may not return to normal levels as quick as many hope, and with that may come more volatility." In the wake of the data, Federal Reserve Bank of Cleveland President Loretta Mester said the central bank could become more aggressive with rate rises in the future if inflation surprises to the upside. Below is your market snapshot:
(Chuck Mikolajczak)
*****
NASDAQ COMPOSITE: BULLISH MESSAGE IN THE BOTTLE? (0900
EST/1400 GMT)
One long beleaguered measure of the Nasdaq Composite's internal strength has recently poked its head above
water. This, as the tech-heavy index has come up for air in
2023:
The spread between the Nasdaq's cumulative net new highs (running sum of new yearly highs minus new yearly lows),
and its 12-week moving average, inflected from positive to
negative on November 26 of last year. This was just one week
after the Nasdaq's record high close on a weekly basis, and the
week of the tech-laden index's record intraday high.
After 63-straight weeks in negative territory, which was its
longest such streak since an 81-week run around the Great
Financial Crisis, this measure turned positive last week with a
+67 reading. Through Wednesday's close of this week it has now
ticked up to +360, for its highest reading since November 19,
2021.
Traders will be watching to see if this nascent bullish turn
sustains. If the cumulative net new highs on a weekly basis can
continue to trend above their 12-WMA, the Nasdaq may see a
protracted advance.
However, the measure falling back below its 12-WMA may see
the Nasdaq quickly sink again.
(Terence Gabriel)
*****
FOR THURSDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400
GMT - CLICK HERE
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
IXICCNNH02162023 Early trade Feb 16 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
