Key Levels to Watch: S&P 500, 10Y, Gold, VIX
Key Levels to Watch: S&P 500, 10Y, Gold, VIX: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- CPI Technical Preview: S&P 500, 10Y, Gold, VIX
- Trading Color – The “Chase” Higher Continued Yesterday
- PPI Takeaways: Downside Revisions Spark Dovish Money Flows
Futures are flat while European stocks are modestly higher thanks to market-friendly economic data overnight ahead of today’s U.S. CPI report.
GME and AMC are both notably up another 10%+ in pre-market trading suggesting the meme-stock frenzy is poised to continued today.
Economically, French CPI met estimates at 2.2% y/y while Eurozone Industrial Production was up 0.6% vs. (E) -0.5% helping to ease lingering worries about the threat of global stagflation.
Today, focus will be acutely on economic data in the premarket with CPI (E: 0.3% m/m, 3.4% y/y) and Core CPI (E: 0.3% m/m, 3.6% y/y) the most important release to watch. Downside revisions to March like we saw in yesterday’s PPI report and a goldilocks headline should see stocks extend gains and test or break through current records.
However, in order for the equity rally to continue it is important that Retail Sales (E: 0.4%), the Empire State Manufacturing Index (E: -10.0), and the Housing Market Index (E: 51.0) don’t offer and negative surprises as there is a tentative and complacent feel to the current test of the all-time-highs.
After the economic data is digested, there are two Fed officials scheduled to speak today: Kashkari (12:00 p.m. ET) and Bowman (3:20 p.m. ET). Investors have become comfortable with the higher-for-longer tone recently, but any mention of hikes could pressure markets here.
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