Inflation Higher Than Expected, Stocks Dump & Recover on Rate Fears

US January CPI +0.5% m/m vs +0.3% expected, a fail with key inflation for the stock marlet and clearly all the QE is flowing in and now concerns are the Fed is behind the curve, or was this a catch up number? S&P Futures fell over 40 handles instantly on the fail but then bounced 50!

US January CPI +0.5% m/m vs +0.3% expected, a fail with key inflation for the stock marlet and clearly all the QE is flowing in and now concerns are the Fed is behind the curve, or was this a catch up number? S&P Futures fell over 40 handles instantly on the fail but then bounced 50!

Sell Mortimer

January consumer price index data

  • US January CPI +0.5% m/m vs +0.3% expected, Prior +0.2% (unrevised)
  • Ex food and energy +0.3% m/m vs +0.2% exp
  • Prior ex food and energy +0.2% (unrevised)
  • CPI +2.1% y/y vs +1.9% y/y exp
  • Ex food and energy +1.8% vs +1.7% exp
  • Real avg weekly earnings +0.4% vs +0.9% prior
  • Real avg hourly earnings +0.8% vs +0.6% prior

So was it a one off with that energy spike?

It was a fail with key inflation for the stock market and clearly all the QE is flowing in and now concerns are the Fed is behind the curve, or was this a catch up number? Retail sales were a fail at the same time missing consensus expectations. The S&P Futures fell over 40 handles isntantly on the fail and the USD rose around 60 pips against the yen, pound, Euro and Australian dollar. 

From The TradersCommunity News Desk

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