Last Updated: 4:04 PM EST
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Stock indices finished today’s trading session in the green despite a hotter-than-expected inflation report. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.43%, 1.04%, and 0.77%, respectively.
The Producer Price Index (PPI) rose 0.4% in January, which exceeded expectations but slowed down from December’s 0.5% increase. On a year-over-year basis, PPI rose by 3.5% to surpass the 3.2% consensus estimate. This increase was driven by a broad-based rise in final demand services prices, which climbed 0.3% for the sixth consecutive month.
The prices of final demand goods also increased, rising by 0.6% in January. This was largely due to a 1.7% jump in energy prices, with diesel fuel prices surging 10.4%. Other notable price increases were seen in chicken, eggs, beef, and veal. However, when excluding volatile food and energy costs, the core PPI rose 0.3% sequentially in January and matched expectations.
It is worth noting that the stronger-than-expected wholesale inflation data, combined with a recent rebound in consumer inflation, suggests that the Fed may hold off on rate cuts for now.
This is especially likely since the U.S. labor market remains strong, as initial jobless claims fell to 213,000 for the week ended February 8. This is a decrease of 7,000 from the previous week’s revised total of 220,000 and better than the 217,000 that was expected.
The four-week moving average of jobless claims also declined, as it fell by 1,000 to 216,000. This average helps smooth out weekly fluctuations and provides a clearer picture of the labor market’s trend. Meanwhile, continuing claims decreased as well to 1.850 million, which was down from 1.886 million in the previous week.
First Published: 3:46 AM EST
U.S. futures edged lower on Thursday morning, as investors looked forward to another key inflation data and several corporate earnings releases. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.12%, 0.12%, and 0.21%, respectively, at 3:39 a.m. EST, February 13.
On Wednesday, all three major indices witnessed a dull performance. The S&P 500 and the Dow Jones declined 0.2% and 0.5%, respectively, while the Nasdaq Composite (NDAQ) rose less than 0.1%.
A hotter-than-expected January Consumer Price Index (CPI) report weighed on broader market sentiment. The data raised concerns about the Federal Reserve’s ongoing fight against inflation and raised expectations that the central bank will maintain current interest rates.
In major after market action, Reddit (RDDT) stock declined 13.3% yesterday following disappointing user growth figures. Also, The Trade Desk (TTD) stock dropped 27.1% after fourth-quarter revenue and outlook fell short of expectations.
Looking ahead, investors will closely monitor the release of January’s Producer Price Index (PPI) on Thursday. Currently, economists anticipate headline inflation to have grown 0.3% month-over-month. This data, along with Initial Jobless Claims report for the week ended February 8, will provide guide investor expectations for future interest rate moves.
Moreover, several companies, including Airbnb (ABNB), Coinbase (COIN), Roku (ROKU), DraftKings (DKNG), Twilio (TWLO), and Palo Alto Networks (PANW), are scheduled to report earnings today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.605% as of writing. Simultaneously, WTI crude oil futures are trending lower, hovering near $70.71 per barrel as of the last check.
Elsewhere, European indices opened higher on Thursday as investors digested several key earnings and economic reports. Also, US-led efforts to resolve the war in Ukraine helped improve market sentiment.
Asia-Pacific Markets Traded Mixed on Thursday
Asia-Pacific indices were mixed today. Japanese stocks gained ground, buoyed by a weaker yen that boosted optimism among the country’s export-oriented industries. On the other hand, Chinese stocks declined amid concerns over Trump’s plans to impose reciprocal tariffs on countries that impose duties on U.S. imports.
Notably, the Hang Seng Index closed lower by 0.2%. Further, China’s Shanghai Composite and Shenzhen Component indices declined 0.42% and 0.77%, respectively. However, Japan’s Nikkei and Topix indices were up 1.28% and 1.18%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.
