Stock Futures Rise After CPI Hits 41-Year High

The March consumer price index came in slightly hotter than expected

Digital Content Manager
Apr 12, 2022 at 9:05 AM
facebook twitter linkedin


Stock futures are headed higher this morning, as the indexes attempt to recover from yesterday's steep losses. Futures on the Dow Jones Industrial Average (DJIA) are set for a 140-point pop, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures sport sizeable pre-market gains of their own. All eyes are on March's consumer price index (CPI) report, which came in at 8.5% this morning. The reading, which barely topped expectations, marked its highest level since 1981, and sentiment is rising today as many on Wall Street speculate that this may be the peak for inflation. Elsewhere, oil prices are climbing, with West Texas Intermediate Crude (WTI) futures hovering near $98 per barrel. 

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

  • Using history to navigate last week's S&P 500 selloff
  • Breaking down the wild options activity JetBlue stock saw yesterday. 
  • Plus, CHGG gets a downgrade; KMX falls on mixed quarterly results; and PG&E reaches wildfire settlement. 

futures april 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw over 1.25 million call contracts traded on Monday, and 693,513 put contracts. The single-session equity put/call ratio fell to 0.55, and the 21-day moving average remained at 0.57.
  2. KeyBanc Capital downgraded textbook and education concern Chegg Inc (NYSE:CHGG) to "sector weight" from "overweight," citing a potential downtrend in U.S. growth trends. In response, CHGG is down 3.7% this morning, adding to its more than 60% year-over-year deficit. 
  3. The shares of CarMax, Inc (NYSE:KMX) are down 4.3% in premarket trading after the auto company reported a fiscal fourth-quarter profit miss, though its revenue topped expectations. KMX noted sluggish sales volumes and higher prices. KMX has already shed 20.8% this year. 
  4. Long-embattled energy name PG&E Corporation (NYSE:PCG) has reached a legal settlement over the 2019 Kincade Fire and the 2021 Dixie Fire, which happened in Northern California. While the company is not facing any criminal prosecution, it is expected to pay $55 million. PCG is up 2.3% in premarket trading, as it attempts to rally back above its year-to-date breakeven level. 
  5. The National Federation of Independent Business (NFIB) small-business index is due out today. Investors will also be expecting a federal budget deficit update.
OV Buzz Chart April 12

Bank Stocks Selling Off in Europe 

Markets in Asia were a mixed bag today, after the World Health Organization (WHO) announced that it was monitoring the Covid-19 surge in China, particularly Shanghai. Japan's Nikkei led the losses with a 1.8% drop, as investors weighed the weakening Japanese yen. Elsewhere, the South Korean Kospi fell 1%, while Hong Kong Hang Seng added 0.5%, and China's Shanghai Composite jumped 1.5%.

Stocks in Europe are lower midday, amid a bank sector selloff, following news that an undisclosed investor sold large stakes in Deutsche Bank and Commerzbank – Germany's top two lenders. The German DAX is down 0.8%, while London's FTSE 100 is 0.6% lower, and the French CAC 40 has fallen 0.5%. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners