Wall Street Traders On Hold In Run-Up To CPI Data: Markets Wrap

(Bloomberg) -- Stocks, bonds and the dollar saw small moves, with investors awaiting Thursday’s inflation data for clues on the Federal Reserve outlook.

The S&P 500 edged higher. US 10-year yields hovered near 4%. Bitcoin traded around $45,000 before a US Securities and Exchange Commission decision on the approval of exchange-traded funds holding the digital asset. Oil whipsawed as a surprise buildup in US stockpiles undercut the threat to supplies from Red Sea escalations. European bond sales have  hit a record this week at more than €108 billion ($118 billion).

Inflation is expected to end the year around the Fed’s 2% target, and the upcoming consumer-price index will probably give a taste of the disinflation trend. Ahead of that, New York Fed President John Williams is due to speak.

“We’re seeing a plausible path to inflation continuing to ease gradually, an end to Fed rate hikes, and a re-acceleration of economic growth in the back half of 2024,” said Arthur Hogan at B. Riley Wealth.

Corporate Highlights:

• When Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kick off the industry’s fourth-quarter earnings reports Friday, their results are likely to show that net-interest margins felt continued pressure from higher funding costs.
• Boeing Co.’s chief Dave Calhoun said the planemaker must own up to its shortcomings as it grapples with a safety incident that has renewed questions over the quality of its manufacturing.
• Hewlett Packard Enterprise Co. agreed to buy Juniper Networks Inc. for $14 billion in a move that will expand its presence in networking but raised skepticism from Wall Street.

Key events this week:

• US CPI, initial jobless claims, Thursday
• China CPI, PPI, trade, Friday
• UK industrial production, Friday
• US PPI, Friday
• Some of the biggest US banks report fourth-quarter results, Friday
• Minneapolis Fed President Neel Kashkari speaks, Friday
• ECB chief economist Philip Lane speaks, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.3% as of 12:59 p.m. New York time
• The Nasdaq 100 rose 0.5%
• The Dow Jones Industrial Average rose 0.2%
• The MSCI World index rose 0.2%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro rose 0.3% to $1.0967
• The British pound rose 0.2% to $1.2734
• The Japanese yen fell 0.8% to 145.60 per dollar

Cryptocurrencies

• Bitcoin rose 2.2% to $46,439.12
• Ether rose 5.4% to $2,441.6

Bonds

• The yield on 10-year Treasuries was little changed at 4.02%
• Germany’s 10-year yield advanced two basis points to 2.21%
• Britain’s 10-year yield advanced four basis points to 3.82%

Commodities

• West Texas Intermediate crude fell 1.4% to $71.20 a barrel
• Spot gold fell 0.3% to $2,024.14 an ounce

This story was produced with the assistance of Bloomberg Automation.

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