Dow Futures Sink on Heels of Gloomy Inflation Reading

Inflation increased 8.6% year-over-year

Deputy Editor
Jun 10, 2022 at 9:09 AM
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All eyes are on May's consumer price index (CPI) this morning, which showed inflation increasing by 8.6% over the past year, compared to expectations of 8.3% -- rising at the quickest pace since 1981. As prices rise, the cost of living jumped 1% in May, keeping at a 40-year high. In response, the two-year Treasury yield surged above 2.8%. Dow Jones Industrial Average (DJIA) futures are down 302 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures sink firmly into the red as well.  

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

  • Real Estate stock could soon break below technical support. 
  • Trade Desk stock flashing bear signal on the charts. 
  • Plus, DOCU and SFIX are plummeting after their quarterly reports; and CME receives an upgrade.

Futures June10

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.1 million call contracts traded on Thursday, and 763,627 put contracts. The single-session equity put/call ratio rose to 0.69, and the 21-day moving average stayed at 0.62.
  2. DocuSign Inc (NASDAQ:DOCU) is taking a nosedive in electronic trading, down 25.3%, after the company posted a first-quarter profit miss and weak guidance, though revenue came in above estimates. Plus, BofA Global Research downgraded the stock to "neutral" from "buy," with a price-target cut to $72 from $120, while six other analysts slashed their price targets as well. 
  3. Stitch Fix Inc (NASDAQ:SFIX) is plummeting as well, down 15.3% premarket, after posting wider-than-expected fiscal third-quarter losses, a revenue miss, and a low current-quarter forecast. So far, no fewer than nine analysts have turned in bear notes, as the stock heads for a fresh record low. 
  4. Atlantic Equities upgraded CME Group Inc (NASDAQ:CME) to "overweight" from "neutral," noting the stock's strong fundamentals and attractive entry point. CME is up 1.8% before the bell. 
  5. Today will bring the University of Michigan's consumer sentiment index, the 5-year inflation expectations, and a federal budget balance update.


Asian, European Markets Fall

Asian markets were mostly lower on Friday, with the exception of China’s Shanghai Composite, which rose 1.4% as shares of tech giant Alibaba (BABA) staged a rebound. The stock dropped the day prior amid reports that Chinese regulators and Jack Ma’s Ant Group have both put an end to rumors of the revival of Ant going public. Meanwhile, the Chinese producer price index rose 6.4% year-over-year in May, coming in line with expectations. Elsewhere in the region, the Hong Kong Hang Seng lost 0.3%, the South Korean Kospi dropped 1.1%, and the Nikkei in Japan lost 1.5%.

European stocks are falling today as the European Central Bank’s (ECB) most recent rate hike decision sinks in, and investors look ahead to a consumer price index (CPI) reading in the U.S. for more clues on inflation. At last check, the London FTSE 100 is 1.2% lower, the German DAX has shed 1.2%, and the French CAC 40 is 1.5% lower.


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