Large-caps gains following CPI data
DSIA +38.30 at 36290.32, NAS Comp +34.94 at 15188.39, S&P 500 +13.28 at 4726.35
Wednesday, the large-cap indexes finished higher, following the Consumer Price Index (CPI) report for December. The S&P 500 (+0.3%), NAS Comp (+0.2%), and DJIA (+0.1%) rose between 0.1-0.3%, while the Russell 2000 fell 0.8%.
10 of the 11 S&P 500 sectors closed in the Green, and the healthcare sector (-0.3%) finished with a modest decline. Declining issues outpaced advancing issues on the NAS
- DJIA -0.1% YTD
- S&P 500 -0.8% YTD
- NAS Comp -2.9% YTD
- Russell 2000 -3.1% YTD
WTI Crude Oil futures settled higher by 1.7%, or $1.38 at $82.52/bbl, Gold futures settled $8.80 higher (+0.5%) at $1,827.30/oz, and the US Dollar Index is -0.7% to $94.98.
Looking at our meme stock watch list, losers outnumber winners by about 3 to 1.
Just after the Noon hr ended, Vinco Ventures (BBIG) stock traded up about 9.6% to $2.66, in a 52-wk range of $1.40 to $12.49. The average daily trading volume is about 23.4-M/shares, and 9.4-M/shares Wednesday.
Shares of Bed Bath & Beyond (BBBY) traded up more than 5% to $13.80, in a 52-wk range of $12.51 to $53.90. The average daily trading volume is about 9.5-M/shares, and 6-M/shares traded on the day.
Advocates of bitcoin are undaunted, even as the world’s biggest digital currency continues its rollercoaster ride.
Guido Buehler, CEO of Swiss Bank Seba, which focuses on cryptocurrencies says bitcoin is headed as high as $75,000.
“Our internal valuation models indicate a price right now between $50,000 and $75,000, I’m quite confident we are going to see that level. The question is always timing.” He believes bitcoin volatility will remain high.
That volatility is showing through on the upside Wednesday, with the cryptocurrency recently trading at $43,799 or +6%. It is still down more than 33% from its 9 November 2021 record high of $68,790 in this Fibo retracement.
The International Monetary Fund (IMF) says cryptocurrencies have become a popular asset among institutional investors. According to the latest report, analysis suggests that crypto and equity markets have become increasingly interconnected across global economies.
Bitcoin and KNIGHTS’ Power as an Inflation Hedges
In the face of this inflationary spectre, consumers and institutions holding devaluing fiat (paper) currency have sought out alternatives to hedge against.
Bitcoin, KNIGHTS and many other cryptocurrencies are the weapons of choice, driving the SEC to embrace crypto as an investable asset class.
The US Economy
- Total CPI rose 0.5% month-over-month in December and was up 7.0% year-over-year. This represented the sharpest 12-month increase since June 1982. Core CPI, which excludes food and energy, rose 0.6% month-over-month and was up 5.5% year-over-year. This was the sharpest 12-month increase since February 1991.
- The Key takeaway from the report is that while some categories, like the energy index, showed a decrease in December, the continuation of the overall trend resulted in another acceleration of the year-over-year inflation rate at the headline and core levels.
- The Treasury Budget showed a $21.3-B deficit in December Vs a $143.6-B deficit in the same frame a yr ago. The budget data is not seasonally adjusted, so the December deficit cannot be compared to the November deficit of $191.3-B. December marked the 27th month running that the Treasury has seen a budget deficit.
- The budget deficit over the last 12 months is $2.58-T Vs a deficit of $2.70-T in November.
- The weekly MBA Mortgage Applications Index increased 1.4% following a 5.6% decline in the prior wk.
Looking Ahead: Investors will receive the Producer Price Index for December and the weekly MBA Mortgage Applications Index Thursday.
The National Republican Senatorial Committee announced on Wednesday a record-breaking fundraising take of $104.8-M in Y2021
”This @NRSC has smashed fundraising records all cycle, and we have @chuckschumer and the radical @SenateDems to thank,” US Senator Rick Scott of Florida, the committee chairman, said.
”The American people are rejecting the Democrats’ reckless agenda, and come November, they will reject them at the ballot box,” he said, linking an official statement by the NRSC.
Have a prosperous day, Keep the Faith!