Investors are busy unpacking this morning's highly-anticipated inflation data, after December's consumer price index (CPI) dropped 0.1%, compared to November's 0.1% gain, marking the largest month-over-month decrease since April 2020. Year-over-year, CPI rose 6.5%, though this number represents the smallest annual increase since Oct. 2021. Meanwhile, jobs data came in at 205,000 for last week.

Stock futures have been volatile after the event, but at last check are capturing gains. The Dow Jones Industrial Average (DJIA) is up triple digits in electronic trading, while futures on the S&P 500 Index (SPX) and Nasdaq-100 (NDX) hold modest gains of their own.

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

• Top Stock for 2023: Macy's.
• Which drug giant is ripe to reclaim former highs.
• Plus, travel demand boosts AAL, LOGI plummets after earnings, and analyst says buy the dip on CNK. 

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts and over 1 million put contracts traded on Wednesday. The single-session equity put/call ratio rose to 0.70 and the 21-day moving average stayed at 0.80.
2. American Airlines Group Inc (NASDAQ:AAL) is up 5.5% premarket, after the company raised its fourth-quarter revenue forecast due to and increase in pricing and travel demand. Should these gains hold, AAL will be on track for its 10th consecutive daily win, and trading at its highest levels since June. 
3. Logitech International SA (NASDAQ:LOGI) is plummeting before the bell, down 17.1%, after its weak fiscal third-quarter report and slashed outlook. Plus, Wedbush downgraded the stock to "neutral" from "outperform," with a price-target cut to $60 from $70. 
4. The shares of Cinemark Holdings Inc (NYSE:CNK) are up 1.8% in electronic trading, after J.P. Morgan Securities upgraded the movie chain to "overweight" from "neutral." The firm sees an attractive entry point for CNK as the equity pulls back from its early December peak. Year-over-year, the equity is down 44.2%. 
5. Thing are picking back up today, with the aforementioned CPI and core CPI on tap, as well as weekly initial and continuing jobless claims, and the Federal budget. 

Stocks Higher in Asia, Europe

Asian markets closed in positive territory today, ahead of the CPI release stateside. Hong Kong’s Hang Seng added 0.4%, leading the gainers after property consultant Colliers Hong Kong said China’s reopening could bolster recovery in the property market in 2023. China’s Shanghai Composite, meanwhile, added 0.1%, despite data from the National Bureau of Statistics showing inflation in the country accelerated 1.8% in December. The Japanese Nikkei was essentially flat, after the country’s central bank said it will review the side effects of monetary easing at its policy meeting next week, while South Korea’s Kospi jumped 0.2%.

Across the pond, The Europe Stoxx 600 (SXXP) hit 450.19 this morning, putting stocks in the region at their highest level since April 2022. The auto, bank, retail, and telecom sectors are all trading higher. At last glance, France’s CAC 40 is 0.9% higher, while the German DAX and FTSE 100 in London are both up 0.8%.

Every day this week, we're going to highlight one of Schaeffer's top seven picks for 2023. Next up is software stock MongoDB Inc (NASDAQ:MDB). To access the entirety of the 2023 report, click here.

Cloud stock MongoDB (MDB) could have newfound support at the $150 level, an area that once served as resistance back in 2019 and 2020. There’s additional support for the shares at $144, which is six times the company’s initial public offering (IPO) level. The cloud database management company has revenue expected to grow 28% in 2023, while its price/sales ratio of 9.03 is up around 2018 levels.

Keep an eye on the $10 billion market cap area as well—while MDB is below this level now, it could step up as support in the coming months. There are room for upgrades, especially considering MDB’s type of technology and “pure-play” status as a stock tends to rise on upbeat economic news or Fed pivots.

There’s also short squeeze potential, with a healthy 6.8% of the stock’s total available float sold short. Options look like a good way to go, too, per the security's Schaeffer's Volatility Scorecard (SVS), which sits up at 96 out of 100. This this means MongoDB stock has exceeded option traders' volatility expectations during the past year.

Investors seemed confident on Wednesday that the consumer price index (CPI), which is due out tomorrow, will confirm inflation is easing and encourage the Federal Reserve to slow the pace of interest rate hikes. The Dow added 268 points, while the Nasdaq scored a fourth consecutive gain -- its longest win streak since September, and the S&P 500 notched a healthy win of its own. Meanwhile, bond yields cooled, with investors rotating back into tech stocks.  

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

• Eli Lilly stock looks ready for a bounce.
• Why this retail stock in one of our 2023 top picks. 
• Plus, checking in on 2 airline leaders; pharma giant extends rally; and why Biden's third year could be good to stocks. 

5 Things to Know Today 

1. U.S. President Joe Biden asked Congress to unite and hold the tech sector accountable regarding protection of privacy, competition, and American children. (Wall Street Journal)
2. The World Health Organization (WHO) said today the Covid-19 omicron XBB.1.5 variant does not have mutations currently known to make people sicker. (CNBC) 
3. How 2 airline stocks responded to grounded U.S. flights. 
4. FDA feedback blowing tailwinds for Biora Therapeutics stock. 
5. How Wall Street may benefit from Biden's third year in office.

There were no earnings of note today.

Gold Prices Bag Fresh Multi-Month High

Oil prices settled higher yet again on Wednesday to notch a fifth-straight win. Boosting black gold are expectations of strong oil demand in China and a weakening U.S. dollar,  as well as fears of a price cap on refined products from Russia. February-dated crude rose $2.29, or 3.1%, to settle at $77.41 per barrel.

Gold prices bounced back to score another eight-month high, with traders keeping an eye on tomorrow's CPI data, which could support the precious metal. February-dated gold rose $2.40, or 0.1%, to settle at $1,878.90 per ounce.

According to BMO, near-term hurdles such as competition for key drugs and patent expiries won't derail the long-term revenue and earnings growth of Eli Lilly And Co (NYSE:LLY). While the drugmaker forecasts annual profit and revenue below estimates in November, the brokerage noted the company's diabetes drug Mounjaro is tracking above expectations. Even better for Eli Lilly stock, it's shares just pulled back to a historically bullish trendline on the charts.

More specifically, Eli Lilly stock is trading near its 120-day moving average, which has acted as a springboard for the equity in the past. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, eight similar signals have occurred during the past three years. One month later, LLY enjoyed a 5.1% gain, 75% of the time. Last seen up 0.8% at $355.61, a move of similar magnitude from its current perch would put the equity within a chip-shot of its Dec. 5 all-time high of $375.25.

On a year-over-year basis, Eli Lilly stock stands 35.5% higher. Meanwhile, on a closing basis, the $375 level acted as a ceiling during the security's trading at its aforementioned peak.

It doesn't look like the brokerage bunch needed much encouragement considering 14 or 16 in coverage rate LLY a "buy" or better; however, at least two recommend a tepid "hold," leaving a little room for an unwinding of pessimism. Further, the 12-month consensus target price of $389.52 is a 9.6% premium to the stock's current perch.

Options traders have been slightly more bearish than unusual, so a shift in sentiment in the options pits could put additional wind at the equity's back. Eli Lilly Stock's Schaeffer' put/call open interest ratio (SOIR) of 1.52 stands higher than 93% of annual readings, and indicates short-term traders have rarely been more put-biased. What's more, the stock's 50-day put/call volume ratio stands higher than 72% of annual readings at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

Now looks like a great opportunity to take advantage of Eli Lilly stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 25% sits in the relatively low 14th percentile of its annual range. This means the stock is currently sporting attractively priced premiums.

Every day this week, we're going to highlight one of Schaeffer's top seven picks for 2023. Next up is retail stock Macy's Inc (NYSE:M). To access the entirety of the 2023 report, click here.

Macy’s (M) could be an attractive buy-and-hold for 2023, given its low price/earnings ratio of 4.9 and dividend yield of 2.79%. Even as recession fears have grown amid interest rate hikes and yield curve inversions, M has rallied 50% from a two-year low during this time frame. Back in October, the shares broke out of a trendline connecting lower highs since April, and thanks to a post-earnings bull gap in November, are now above their 200-day moving average.

However, expectations remain low among the brokerage bunch, with 13 of the 17 analysts covering the stock doling out “hold” or “sell” ratings. Short interest still accounts for a healthy 7% of the equity’s total available float too, even with short covering activity rampant since May. 

A computer outage led to all U.S. flights being grounded Wednesday morning. According to the Federal Aviation Administration (FAA), its "Notice to Air Missions" system was activated "to address the equipment outage issues for the U.S. NOTAM system," which is a notice for workers engaged in flight operations.

While flights get started back up in some major U.S. cities, Delta Air Lines, Inc. (NYSE:DAL), and American Airlines Group Inc (NASDAQ:AAL) are making fractional moves ahead of Wall Street's open. 

Delta Air Lines stock was last seen 0.1% higher to trade at $38.14. Flight cancellations over the holiday season pushed the shares lower on the charts, with DAL losing 7.1% in December. In the last 12 months, the equity is down 6.3%.

American Airlines stock, meanwhile, was last seen trading down 0.3% before the bell. Similar to Delta and other sector peers, AAL's experienced a hefty December dip, losing 11.9% to close out 2022. The security was able to hold above its early October, multi-year lows, but it still sports a nearly 20% year-over-year deficit. 

Stock futures are modestly higher, following yesterday's three-day win streak captured by the Nasdaq Composite Index (IXIC). Comments from U.S. Federal Reserve Chairman Jerome Powell had investors fatigued Tuesday, but tomorrow is looking to be a major day for inflation and big name bank earnings. At last check, futures on the Dow Jones Industrial Average (DJIA) are up 70 points, while futures on the S&P 500 Index (SPX) and Nasdaq-100 (NDX) eye a more neutral open.

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

• Schaeffer's Senior Quantitative Analyst Rocky White on why the third year of a Biden presidency could be a boon for stocks.
• A look at another Schaeffer's 2023 Top Stock Pick.
• Plus, two stocks suffering downgrades; and Tesla's latest production buzz.

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.1 million call contracts and 720.896 put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.64 and the 21-day moving average stayed at 0.80.
2. CarMax, Inc (NYSE:KMX) is down 1.3% before the bell, after a downgrade to "underweight" at J.P. Morgan Securities. The analyst in coverage said traders are not being cautious enough toward recovery risks for the auto retailer. CarMax stock has shed 43% over the past 12 months. 
3. Just one day off its latest layoff announcement, Coinbase Global Inc (NASDAQ:COIN) stock is down 2.7% in electronic trading following a bear note out of Bank of America. The brokerage downgraded COIN to "underperform" from "neutral," saying consensus estimates are "way too high." COIN has shed nearly 40% in the past three months.
4. The shares of Tesla Inc (NASDAQ:TSLA) are up 2.1% premarket, after the electric vehicle (EV) name registered to widen its factory production in Austin, Texas. Additionally, Tesla stock was named a "top pick" for 2023 at Goldman Sachs. TSLA has backpedaled more than 60% year-over-year. 
5. No notable updates are scheduled for today.

Unemployment Climbs to 11-Month High in South Korea

Stocks in Asia were mostly higher, as investors await the U.S. consumer price index (CPI) data tomorrow. Japan’s Nikkei led the region’s gainers, jumping 1%. South Korea’s Kospi added 0.4%, despite the unemployment rate in the country climbing 3.3% in December to an 11-month high. Rounding out the region, the Hong Kong Hang Seng added 0.5%, while China’s Shanghai Composite shed 0.2%.

European traders are also looking stateside, with the major bourses trading higher ahead of the release. The German DAX is leading the charge, last seen up 1.1%, while London’s FTSE 100 is 0.7% higher. In France, the CAC 40 is up 1%, after the Bank of France said the French economy is holding up better than expected and should be able to avoid a “hard landing.”