Stock Futures Soar After Inflation Data Suggests Top

December's CPI rose 7% annually, on par with estimates

Managing Editor
Jan 12, 2022 at 9:20 AM
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Stock futures are firmly higher higher this morning, after the latest inflation data failed to spook investors. Futures on the Dow Jones Industrial Average (DJI)S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) are all are poised to build off yesterday's tech rally.

The December reading of the consumer price index (CPI) came in at 7% in the last 12 months, on par with analyst estimates and a suggestion that inflation could be nearing its top. However, that reading is still the fastest growth since 1982 and the core CPI reading that excludes food and energy rose 5.5% year-over-year, which stands a little higher than analysts' expected. 

Continue reading for more on today's market, including:  

  • Schaeffer's Senior Quantitative Analyst Rocky White sees entry points for many intriguing stocks.
  • Buy the dip on this retail stock.
  • Plus, CROX scores big upgrade; defense sector shaken up by FTC; and PayPal stock bashed by bear note.   

OV Futures Chart Jan 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.48 million call contracts traded on Tuesday, and 656,274 put contracts, the lowest since April 26. The single-session equity put/call ratio fell to 0.44, and the 21-day moving average remained at 0.49.
  2. Crocs, Inc. (NASDAQ:CROXstock is up 4% in electronic trading, after the shoemaker was named a "Top Pick" by Piper Sandler. The analyst in coverage is impressed by the company's consumer growth. Year-over-year, Crocs stock is up 68%.
  3. Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD) stock is up 2% before the open, after the Federal Trade Commission (FTC) postponed a vote on Lockheed Martin's (LMT) presumed take over. Critics of the deal are wary of the monopolistic market share the defense contractor will have once taking over Aerojet. AJRD is battling its 12-month breakeven level.
  4. The shares of PayPal Holdings Inc (NASDAQ:PYPL) are down 1.4% ahead of the bell and seeing a lot of chatter on social media today. Jefferies downgraded the tech company to "hold" from "buy" and slashed its price target to $200 from $255, citing lackluster e-commerce trends. PayPal stock has shed 36% in the last six months.
  5. A federal budget update is slated for release, alongside the latest from the U.S. Federal Reserve's Beige book.  
buss jan 12

European Markets Brush Off Inflation Readings

Asian markets settled higher on Wednesday, with the tech sector rallying after U.S. Federal Reserve Chairman Jerome Powell did not signal more economic policy changes. Investors were also celebrating China’s consumer price index (CPI), which rose a smaller-than-expected 1.5% in December, compared to the previous year. Leading the gainers was Hong Kong’s Seng with a 2.8% pop, followed by Japan’s Nikkei 1.9% gain. Elsewhere, South Korea’s Kospi was 1.5% higher, and China’s Shanghai added 0.8%.

European markets are also higher, as investors digest stateside inflation data for December, which came in at its fastest annual pace in almost four decades, increasing 7%. They seem encouraged by Powell’s comments that the U.S. economy is healthy enough to withstand interest rate hikes, however. At last check, London’s FTSE 100 sports a 0.7% lead, France’s CAC 40 is 0.4% higher, and the German DAX is up 0.3%.

 

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