Awaiting Inflation: U.S. Stocks Up Slightly

Quick Look:

• U.S. stocks show slight gains as investors seek recovery from last week’s losses, with the Dow Jones up by 10 points.
• Market volatility was highlighted by significant downturns last week, including a 2.3% drop in the Dow Jones.
• Analysts emphasise the importance of upcoming inflation data and economic indicators like CPI and PPI.
• Tesla, Ulta, and BJ’s Wholesale see share increases amid optimistic company news and upgrades.

In a modest uptick on Monday, U.S. stocks made slight gains as investors sought to recoup last week’s losses, signalling a cautious optimism regarding inflation. The Dow Jones Industrial Average increased by 10 points, marking an increase of less than 1%. Moreover, the S&P 500 and the Nasdaq Composite saw gains of 0.1% and 0.2%, respectively. This movement comes as a breather after the tumultuous performance in the previous week.

Inflation Week: Dow’s 2.3% Drop Marks Sharpest Since March

Significant downturns marked the stock market’s previous week: the Dow Jones faced a 2.3% drop, its sharpest decline since March 2023. Furthermore, the S&P 500 fell nearly 1%, and the Nasdaq Composite dipped by 0.8%. These figures underscore a challenging period for the markets, with the Nasdaq recording its fourth negative week in the last five, highlighting the volatility and investor caution that has characterised recent trading sessions.

Analysts Eye 2024 Economy: Jobs & Wages Outpace Inflation

Amidst these market fluctuations, notable financial analysts have weighed in, providing a nuanced perspective on the economic landscape. Bill Adams remarked that jobs and wages are rising solidly, and aggregate payrolls are outpacing inflation, affecting American spending in 2024 and powering the economy forward.

March CPI & PPI Awaited; Oil Hits $87 Amid Tensions

Investors remain on edge, awaiting critical economic indicators. A stronger-than-anticipated jobs report last Friday has injected a dose of optimism, suggesting potential for sustained economic growth. However, the focus now shifts to the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) data for March. It is anticipated to reveal a 0.3% monthly increase and a 3.5% yearly rise. Rising bond yields and oil prices continue to influence market sentiments, with the 10-year Treasury yield surging to about 4.4% and U.S. crude oil prices reaching $87 amid geopolitical tensions.

Tesla Soars 3%, Spotlight on Ulta and BJ’s Upgrades

In company news, Tesla’s shares climbed 3% following the announcement of a robotaxi design unveiling, spotlighting the company’s innovation trajectory. Ulta’s stock witnessed a 1.3% increase after an upgrade to ‘buy’, and BJ’s Wholesale enjoyed a 2.4% uplift following a similar endorsement.

Earnings Season Awaits: Delta, JPMorgan, Wells Fargo Up

U.S. stocks have shown resilience as the market anticipates the inflation data release and the onset of the earnings season. Major companies like Delta Air Lines, JPMorgan, Wells Fargo, BlackRock, and Citi are poised to report their earnings this week, potentially offering fresh insights into the health of various sectors. Moreover, the precious metals and energy markets are under the microscope. Gold prices breached $2,350 an ounce, and Brent crude futures adjusted to $90.40 a barrel, reflecting the complex interplay of economic factors shaping market dynamics.