Market Update
Stocks Extend Gains Ahead of Rate Decision, Oil Advances
Barry Adams
14 Dec, 2022
New York City
Stocks on Wall Street gained ahead of the closely watched rate decision later in the day.
Investors are anticipating a less hawkish stance from the Federal Reserve after four large-size rate hikes in a row.
Despite the multiple rate hikes, inflation is still elevated and significantly above the Fed's preferred rate of 2.0%.
Investors are also hoping to get more clarity on the Fed's stance on future rate hikes and policy makers' views on the health of the economy.
Market Indexes Advance
Market indexes on Wall Street traded higher on the expectations of a rate hike moderation.
Tech and energy stocks led the gainers in trading.
The S&P 500 index increased 0.6% to 4,045.14 and the Nasdaq Composite index added 0.6% to 11,323.07.
Energy Prices Advance
Energy prices continued to rebound in New York, Europe and Asia.
Crude oil prices rose amid optimism about China's reopening and above average winter conditions in the U.S. and colder temperatures in Northern Europe.
Crude oil increased $1.25 to $76.62 a barrel and natural gas prices eased 35 cents to $6.59 a thermal unit.
Bond Yields Inch Higher
Treasury bond yields edged higher ahead of the last rate decision from the Federal Reserve.
The U.S. Fed is expected to increase rates at least by 50 basis points and investors are already looking ahead in 2023 and hoping that the Fed may pause rate hikes at its first meeting in 2023 in February.
The yield on 2-year Treasury notes eased to 4.19%, 10-year Treasury notes inched higher to 3.51% and 30-year Treasury bonds edged higher to 3.54%.
Import and Export Price Indexes Eased In October
U.S. import prices declined 0.6% in November and export prices eased 0.3% from the previous month, the fifth monthly fall in prices in a row, the U.S. Bureau of Labor Statistics said Wednesday.
The import price index for October was revised to a 0.4% decline.
The import prices fell after the cost of petroleum decreased 2.8% in November and non-fuel import prices declined 0.4% in the month, the largest decline since July.
On an annual basis, import prices inflation eased to 2.7%, the smallest increase since January 2021.
Mortgage Applications Rebound
Mortgage applications rebounded 3.2% in the week ending on December 8, according to the latest survey results released by the Mortgage Bankers Association.
The seasonally adjusted Market Composite Index increased 3.2% from the previous week and rose 0.4% on an unadjusted basis.
The refinancing index increased 3% from the previous week but was still down a whopping 85% from a year ago.
U.S. Stock Movers
Delta Air Lines, Inc gained 2.9% to $34.34 after the company said demand for air travel remains strong and lifted its annual views.
For 2022, the airline estimated revenue between $45.5 billion and $45.6 billion and earnings per share between $3.07 and $3.12.
The company also estimated 2023 revenue to increase between 15% and 20% and earnings per share to fall between $5.0 and $6.05 and free cash flow to surpass $2.0 billion.
Aspen Group Inc increased 32% to 46 cents after the online education company reported better-than-expected quarterly results.
Revenue in the fiscal year second quarter 2023 ending in October declined to $17.1 million from $18.9 million a year ago.
Net loss in the quarter shrank to $2.3 million from $2.9 million or diluted loss per share fell to 9 cents from 11 cents a year ago.
Global Markets Advance After Inflation Eased, SBF Denied Bail
Barry Adams
13 Dec, 2022
New York City
Stocks advanced on Wall Street after November inflation cooled and raised the prospect of a lesser hawkish stance from the Federal Reserve Bank.
Consumer prices rose at a slower pace in November after energy prices dropped sharply but housing inflation remained elevated.
Core rate of inflation also slowed, raising the prospect of a moderate interest rate increase on Wednesday.
Markets are widely anticipating rate increase moderation at the conclusion of a two-day meeting of the Federal Reserve's policy committee on Wednesday.
Despite the cooling of inflation in November, inflation is still significantly above the Fed's preferred rate of 2.0%.
Moreover, the last four rate hikes have had no meaningful impact on inflation and the Fed's fight against rapid price increases may continue for a while.
The yield on 2-year Treasury notes declined sharply to a 3-month low of 4.21%, 10-year Treasury notes fell to 3.50% and 30-year U.S. bonds dropped to 3.54%.
Market Indexes Trim Earlier Gains
Tech stocks led the market advance on the hopes that future rate hikes may be moderate after inflation cooled in November.
The S&P 500 index soared 0.7% to 4,019.65 and the Nasdaq Composite index jumped 1.01% to 11,256.81.
Oil and Natural Gas Rebounds
Crude oil prices in New York and London rose amid optimism about China's easing of mobility restrictions and unwinding of stringent isolation requirements for coronavirus infected patients.
Crude oil increased $1.88 to $75.05 a barrel and natural gas futures added 37 cents to $6.97 a thermal unit.
Consumer Inflation Eased In November
The Consumer Price Index increased 7.1% in November from a year ago and rose 0.1% from October, the U.S. Bureau of Labor Statistics reported Tuesday.
The monthly increase data are adjusted for seasonal factors but annual pace of change is unadjusted for seasonal variations.
The annual pace of increase was the smallest 12-month increase since the period ending in December 2021.
The core inflation, excluding food and energy, slowed to 6.0% on an annual basis and eased to 0.2% on a monthly basis in November.
Despite the cooling of inflation, prices still rose at elevated levels after the decline in energy prices were offset by the increase in housing costs.
The energy index decreased 1.6% over the month as the gasoline index, the natural gas index, and the electricity index all declined.
The energy index increased 13.1% over the 12-month period.
The shelter increased at a slower pace of 0.6% over the month after rising 0.8% in October and slowed to 7.1% increase on an annual basis.
U.S. Stock Movers
Oracle Corporation rose 2.7% to $83.43 after the database developer said revenue in the fiscal 2023 second quarter rose 18% to $12.3 billion.
The company swung to a net income of $1.7 billion from a loss of $1.2 billion or 63 cents from 46 cents loss a share a year ago.
Boeing Company rose 1.2% to $188.52 after United Airlines placed an order to purchase 200 jet planes with an option to acquire more planes in future.
United Airlines said it plans to purchase 100 787 Boeing Dreamliners and 100 Boeing 737 Max jets as the company replaces its aging fleet.
The order is worth $43 billion at list prices.
Cryptocurrencies and Assets Under Pressure
Cryptocurrencies and publicly listed companies were in focus after the Bahamas police arrested the former chief executive of the fallen crypto exchange FTX at the request of federal prosecutors in New York.
Sam Bankman Fried faces criminal charges including defrauding investors and wire fraud charges and a separate set of charges from the U.S. Securities and Exchange Commission.
In addition, the U.S. regulators charged SBF with misappropriating client assets, making illegal political donations and in all eight criminal charges.
The 30-year old founder of the crypto exchange was denied bail in the Bahamas and he told a judge in the Bahamas that he was not waiving his right to fight extradition to the U.S.
Coinbase Global declined 1.1% to $42.15 and the Bitcoin and other cryptocurrencies rose between 2% and 4%.
Robinhood Markets increased 1.1% to $9.69.
Binance, the rival crypto exchange, has seen withdrawal requests of as much as $1.9 billion in the last 24 hours, blockchain data tracker Nansen said on Tuesday.
Rate Moderation Hopes Lift Europe Indexes
Market averages in Europe soared following the easing of inflation in the U.S. and resource stocks advanced amid optimism about China's unwinding of coronavirus restrictions.
Benchmark indexes shot up after the consumer prices in November rose at a slower pace of 7.1% in November following 7.7% in October, the U.S. Bureau of Labor Statistics reported Wednesday.
Monthly rate of inflation eased to 0.1% in November from 0.4% in October after energy prices declined, food inflation moderated but housing prices remained elevated.
The inflation cooled more than expected stoking optimism that the U.S. Federal Reserve may moderate its rate hike to 50 basis points after the end of the policy meeting tomorrow and the European Central Bank may also moderate its rate hike to 50 basis points on Thursday.
The bond yields traded down and the euro and the British pound rebounded to multi-month highs.
The 10-year German Bund yield declined to 1.918%, French bonds dropped to 2.39%, the UK gilts eased to 3.304% and Italian bonds inched lower to 3.804%.
The euro rebounded to the level last seen in mid-June and traded up to $1.645 and the British pound gained to close at $1.235.
Europe Market Indexes Soar
European market indexes advanced on the hopes of rate moderation by the Federal Reserve and the Bank of England tomorrow and the European Central Bank on Thursday.
The DAX index increased 1.3% to 14,497.89, the CAC-40 index added 1.4% to 6,744.98 and the FTSE 100 index advanced 0.7% to 7,502.89.
German Consumer Price Inflation Eases
Consumer price index in Germany eased to 10.0% in November from 10.4% in October, the Federal Statistics Office said Tuesday.
"Despite a slight easing in energy prices, the inflation rate remains at a high level of +0.0%," says Dr. Georg Thiel, President of the Federal Statistical Office.
Rate Moderation Hopes Power European Rally, German Inflation Stays at 10%
Bridgette Randall
13 Dec, 2022
Frankfurt
Market averages in Europe soared following the easing of inflation in the U.S. and resource stocks advanced amid optimism about China's unwinding of coronavirus restrictions.
Benchmark indexes shot up after the consumer prices in November rose at a slower pace of 7.1% in November following 7.7% in October, the U.S. Bureau of Labor Statistics reported Wednesday.
Monthly rate of inflation eased to 0.1% in November from 0.4% in October after energy prices declined, food inflation moderated but housing prices remained elevated.
The inflation cooled more than expected stoking optimism that the U.S. Federal Reserve may moderate its rate hike to 50 basis points after the end of the policy meeting tomorrow and the European Central Bank may also moderate its rate hike to 50 basis points on Thursday.
The bond yields traded down and the euro and the British pound rebounded to multi-month highs.
The 10-year German Bund yield declined to 1.918%, French bonds dropped to 2.39%, the UK gilts eased to 3.304% and Italian bonds inched lower to 3.804%.
The euro rebounded to the level last seen in mid-June and traded up to $1.645 and the British pound gained to close at $1.235.
Europe Market Indexes Soar
European market indexes advanced on the hopes of rate moderation by the Federal Reserve and the Bank of England tomorrow and the European Central Bank on Thursday.
The DAX index increased 1.3% to 14,497.89, the CAC-40 index added 1.4% to 6,744.98 and the FTSE 100 index advanced 0.7% to 7,502.89.
German Consumer Price Inflation Eases
Consumer price index in Germany eased to 10.0% in November from 10.4% in October, the Federal Statistics Office said Tuesday.
"Despite a slight easing in energy prices, the inflation rate remains at a high level of +0.0%," says Dr. Georg Thiel, President of the Federal Statistical Office.
Movers: Bitcoin, Boeing, Energy Stocks, Oracle, United Airlines
Scott Peters
13 Dec, 2022
New York City
Oracle Corporation rose 2.7% to $83.43 after the database developer said revenue in the fiscal 2023 second quarter rose 18% to $12.3 billion.
The company swung to a net income of $1.7 billion from a loss of $1.2 billion or 63 cents from 46 cents loss a share a year ago.
Boeing Company rose 1.2% to $188.52 after United Airlines placed an order to purchase 200 jet planes with an option to acquire more planes in future.
United Airlines said it plans to purchase 100 787 Boeing Dreamliners and 100 Boeing 737 Max jets as the company replaces its aging fleet.
The order is worth $43 billion at list prices.
Cryptocurrencies and publicly listed companies were in focus after The Bahamas police arrested the former chief executive of the fallen crypto exchange FTX.
Sam Bankman Fried faces criminal charges including defrauding investors and wire fraud charges and a separate set of charges from the U.S. Securities and Exchange Commission.
Coinbase Global declined 1.1% to $42.15 and the Bitcoin and other cryptocurrencies rose between 2% and 4%.
Robinhood Markets increased 1.1% to $9.69.
Energy stocks traded higher after crude oil prices and natural gas prices rebounded.
Crude oil price jumped $2.17 to $75.34 a barrel and Brent crude oil increased $2.60 to $80.59 a barrel amid optimism about China's reopening.
Natural gas prices increased 44 cents to $7.03 a thermal unit and the Dutch TTF natural gas futures rose to
Major Averages Jump 2% After Inflation Cooled In November
Barry Adams
13 Dec, 2022
New York City
Stocks soared on Wall Street after November inflation was smaller than expected, lifting hopes of a smaller rate hike tomorrow.
Consumer prices rose at a slower pace in November after energy prices plunged sharply but cost of housing remained elevated.
Core rate of inflation also slowed, raising the prospect of a moderate interest rate increase on Wednesday.
The yield on 2-year Treasury notes declined sharply to a 3-month low of 4.20%, 10-year Treasury notes fell to 3.45% and 30-year U.S. bonds dropped to 3.49%.
Market Indexes Jump 2%
Tech stocks led the market advance on the hopes that future rate hikes may be moderate after inflation cooled in November.
The S&P 500 index soared 2.0% to 4,068.52 and the Nasdaq Composite index jumped 2.7% to 11,426.24.
Oil and Natural Gas Rebounds
Crude oil prices in New York and London rose amid optimism about China's easing of mobility restrictions and unwinding of stringent isolation requirements for coronavirus infected patients.
Crude oil increased $1.42 to $74.58 a barrel and natural gas futures added 46 cents to $7.04 a thermal unit.
Consumer Inflation Eases In November
The Consumer Price Index increased 7.1% in November from a year ago and rose 0.1% from October, the U.S. Bureau of Labor Statistics reported Tuesday.
The monthly increase data are adjusted for seasonal factors but annual pace of change is unadjusted for seasonal variations.
The annual pace of increase was the smallest 12-month increase since the period ending in December 2021.
The core inflation, excluding food and energy, slowed to 6.0% on an annual basis and eased to 0.2% on a monthly basis in November.
Despite the cooling of inflation, prices still rose at elevated levels after the decline in energy prices were offset by the increase in housing costs.
The energy index decreased 1.6% over the month as the gasoline index, the natural gas index, and the electricity index all declined.
The energy index increased 13.1% over the 12-month period.
The shelter increased at a slower pace of 0.6% over the month after rising 0.8% in October and slowed to 7.1% increase on an annual basis.
U.S. Stock Movers
Oracle Corporation rose 2.7% to $83.43 after the database developer said revenue in the fiscal 2023 second quarter rose 18% to $12.3 billion.
The company swung to a net income of $1.7 billion from a loss of $1.2 billion or 63 cents from 46 cents loss a share a year ago.
Boeing Company rose 1.2% to $188.52 after United Airlines placed an order to purchase 200 jet planes with an option to acquire more planes in future.
United Airlines said it plans to purchase 100 787 Boeing Dreamliners and 100 Boeing 737 Max jets as the company replaces its aging fleet.
The order is worth $43 billion at list prices.
Cryptocurrencies and publicly listed companies were in focus after The Bahamas police arrested the former chief executive of the fallen crypto exchange FTX.
Sam Bankman Fried faces criminal charges including defrauding investors and wire fraud charges and a separate set of charges from the U.S. Securities and Exchange Commission.
Coinbase Global declined 1.1% to $42.15 and the Bitcoin and other cryptocurrencies rose between 2% and 4%.
Robinhood Markets increased 1.1% to $9.69.
Consumer Inflation Slowed In November, Housing Inflation Stays Elevated
Barry Adams
13 Dec, 2022
New York City
The Consumer Price Index increased 7.1% in November from a year ago and rose 0.1% from October, the U.S. Bureau of Labor Statistics reported Tuesday.
The monthly increase data are adjusted for seasonal factors but annual pace of change is unadjusted for seasonal variations.
The annual pace of increase was the smallest 12-month increase since the period ending in December 2021.
The core inflation, excluding food and energy, slowed to 6.0% on an annual basis and eased to 0.2% on a monthly basis in November.
Despite the cooling of inflation, prices still rose at elevated levels after the decline in energy prices were offset by the increase in housing costs.
The energy index decreased 1.6% over the month as the gasoline index, the natural gas index, and the electricity index all declined.
The energy index increased 13.1% over the 12-month period.
The shelter increased at a slower pace of 0.6% over the month after rising 0.8% in October and slowed to 7.1% increase on an annual basis.