Dow Futures 710 Points Higher After Upbeat CPI Reading

The 10-year Treasury yield is pulling back

Deputy Editor
Dec 13, 2022 at 9:20 AM
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Futures on Wall Street are firmly higher this morning, as investors digest November's inflation report. The consumer price index (CPI) rose less than expected, increasing a paltry 0.1% last month, against economists' anticipations of a 0.3% jump. The CPI is up 7.1% in the last 12 months, with this reading hinting red-hot inflation may be starting to cool down.

In response Dow Jones Industrial Average (DJIA) futures were last seen 710 points higher, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) also sport strong triple-digit leads. Meanwhile, the 10-year Treasury yield fell below 3.5%.

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

  • Several "known unknowns" this week could trigger selling.
  • Paused plans in Europe weighed on Rivian Automotive stock.
  • Plus, Oracle's quarterly win; Boeing's big sale; and Affirm's bear note.

Futures Chart December 132022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1 million call contracts and 687,677 put contracts exchanged on Monday. The single-session equity put/call ratio fell to 0.64 and the 21-day moving average stayed at 0.73.
  2. Oracle Corporation (NYSE:ORCL) is 4.4% higher in premarket trading, and getting lots of analyst attention after sharing better-than-expected fiscal second-quarter earnings and revenue. Coming into today, the cloud concern sported a slim 6.8% year-to-date deficit.
  3. United Airlines (UAL) just placed a $43 billion order for 200 jets from Boeing Co (NYSE:BA), including 100 787 Dreamliners and 100 737 Max jets, with the option to make additional purchases down the road. Boeing stock is 3% higher ahead of the open, and has added more than 60% over the last six months.
  4. Affirm Holdings Inc (NASDAQ:AFRM) received a downgrade to "neutral" from "buy" at Bank of America Securities. The analyst noted concerns over Affirm's credit risk and discretionary spending cutbacks, which could last longer than previously anticipated. AFRM carries a hefty 89.3% year-over-year deficit. 
  5. The National Federation of Independent Business (NFIB) small-business index is due out today. Plus, the consumer price index (CPI) and core CPI are on tap.


European Markets React to Stateside Inflation Reading

Asian markets were a mixed bag today, having closed before the CPI data hit the U.S. Hong Kong’s Hang Seng added 0.7%, rising after Chief Executive John Lee announced a further relaxation of Covid restrictions. Japan’s Nikkei tacked on 0.4%, while South Korea’s Kospi and China’s Shanghai Composite shed 0.03% and 0.09%, respectively, although casino stocks were big winners throughout the region.

European bourses have taken off after the encouraging CPI data stateside. At last check, London’s FTSE 100 is up nearly 1%, while the French CAC 40 is 0.8% higher and the German DAX has added 1.8%. Elsewhere, the Bank of England (BoE) is pushing back against non-bank financial institutions, calling for “urgent international action” to decouple risk.


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