US index futures initially jumped up 0.3%-0.6% from flat this morning but have seen that whittled back to 0.2%-0.4% in the wake of today’s US economic reports. The US 10-year treasury note yield has dropped from near 4.45% toward 4.35%.
Traders have primarily focused on slightly improved US consumer price data hoping that could be a sign improving inflation could enable the Fed to start cutting interest rates, despite all of the ongoing “higher for longer” talk from central bankers this week including Fed Chair Powell yesterday. On a monthly basis, US consumer prices rose slightly less than expected (0.3% vs street 0.4%), while over a year ago, US consumer prices improved slightly (3.4% in line vs previous 3.5%).
This all seems like much ado about nothing, particularly in the context of all the other disappointing economic numbers that came out this morning which suggest ongoing stagflation. US retail sales growth flatlined and was even worse than expected (0.0% vs street 0.4% and previous 0.6%). The US Empire Manufacturing Survey showed an even deeper contraction than feared (-15.6 vs street -10.0), and Canada manufacturing sales fell more than feared (-2.1% vs street -1.4% and previous 0.9%).
The first day of housing market data for this month finds Canada housing starts stable at 240K slightly more than expected and slightly less than last month. The US NAHB Housing Market Index (street 51 unchanged) is due at 10:00 am EDT.
Trading in meme stocks has cooled off today. GameStop is down 7.6% premarket after soaring 60.1% yesterday. AMC Entertainment, who smartly used this week’s pop as an opportunity to raise $250 million in capital, is down 9.9% after popping 32.0% yesterday. Earnings season picks up again later today with Cisco Systems reporting after the close tonight and Walmart reporting before the open tomorrow.
Copper continues to steamroll forward. It traded above $5.00/lb briefly earlier this morning and is still up 0.8% today. Metals continue to attract interest in general with Silver up 0.8%, Platinum up 0.6% and Gold up 0.3%. Energy trading is mixed with US Crude Oil down 0.4% despite a surprise drawdown in API weekly Crude Oil inventories, while Natural Gas is up 1.6%.