Stock Futures Plummet After Red-Hot Inflation Reading

April's CPI reading topped analysts' estimates

Digital Content Manager
May 11, 2022 at 9:15 AM
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Stock futures erased their earlier gains as another round of red-hot inflation data rolled in. Futures on the Dow Jones Industrial Average (DJIA) were last seen off by 133 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also sitting well below fair value. 

The consumer price index (CPI) jumped 8.3% in April, topping expectations but easing slightly from March's 40-year peak. Meanwhile, the core CPI rose 6.2%, compared to the 6% gain expected by analysts. In response, the 10-year Treasury yield reclaimed the 3% level, last seen at 3.032%. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White breaks down 3 S&P 500 trendlines to keep an eye on. 
  • The plummeting AI stock options traders and analysts targeted on Tuesday.
  • Plus, COIN swings to a quarterly loss; DNUT stages bounce; and OXY keeps climbing on earnings beat.  

futures may 11

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.19 million call contracts traded on Tuesday, and 806,067 put contracts. The single-session equity put/call ratio fell to 0.68, and the 21-day moving average stayed at 0.59.
  2. Crypto-related Coinbase Global Inc (NASDAQ:COIN) is continuing to sink this morning, after yesterday shedding 12.6%. The stock was last seen down 14.5% before the open, after the company reported a first-quarter loss well worse than analysts' estimates, while revenue also missed expectations. COIN has already dropped 75.9% in the past year, and is poised to open at yet another record low. 
  3. Krispy Kreme Inc (NASDAQ:DNUT) stock is up 5.2% ahead of the bell, after it reported a jump off last quarter's record low profits, as well as an earnings beat for its first quarter. DNUT also confirmed its full-year forecast. DNUT has shed roughly 34% in 2022 and yesterday hit a record low of $11.98. 
  4. The shares of Occidental Petroleum Corporation (NYSE:OXY) are up 0.9% this morning, following the firm's announcement that it rose to a record $4.7 billion in quarterly profit. It also shared an earnings and revenue beat, helping it add to its 91.3% year-to-date lead. 
  5. Today's calendar will bring the Federal Budget balance.

OV Buzz May 11

Inflation Data in Focus in Europe, Asia 

Asian markets were mostly higher on Wednesday, on news that Beijing’s new daily Covid-19 cases have dramatically fallen, while Shanghai’s government said eight districts have “contained the virus at a community level.” Investors also brushed off disappointing inflation data out of China, which showed the country’s producer price index (PPI) jumped a higher-than-expected 8% in April compared to a year ago, while consumer inflation also came in above estimates at 2.1%. Hong Kong’s Hang Seng was the top gainer with a 1% pop, followed by a 0.8% rise from China’s Shanghai Composite. Elsewhere, Japan’s Nikkei was 0.2% higher after Nintendo announced a 10-for-1 stock split, while South Korea’s Kospi shed 0.2%.

European markets are also edging higher, as investors pore over stateside inflation data. Traders are also digesting German inflation data, which rose 7.4% in April to its highest level since 1981. European natural gas is also in focus, with prices rising after Ukraine’s Gas TSO suspended Russian gas flows to the region. At last check,  France’s CAC 40 is 2.1 % higher, the German DAX is up 1.5 %, and London’s FTSE 100 is eyeing a 1% pop.

 

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