Market Wrap – Heading Into The Fed Meeting After Record High Inflation

In today’s post market wrap live from the Meta trading room traders discussed US stock and futures markets along with the Bond market, Apple, oil and natural gas through charts and crowd behavior. Listen to how how the day unfolded, what to expect from the Fed and what the charts were telling us. Our traders discuss what to expect and watch for overnight through to the FOMC and beyond.

Live on YouTube:

Enjoy live commentary from Our Trading Room at YouTube as the day wraps up – feel free to like and share

Its been all about inflation and the Fed after last weeks record CPI and last week’s PPI with Gamma flipping at one point and oversized optionality for this time of year.

Market Closes

  • WTI crude futures decreased 0.6%, or $0.46, to $71.24/bbl.
  • U.S. Dollar Index rose 0.3% to 96.36
  • Dow industrial average -106.79 points or -0.30% at 35544.17. The low -0.59%
  • S&P index -34.88 points or -0.75% at 4634.10. The low -1.35%, 2% off its all-time close
  • NASDAQ index -175.63 points or -1.14% at 15237.65. The low -2.05%, 6% from its all-time high
  • Russell 2000 index -20.84 points or -0.96% at 2159.65.

S&P 500 sector watch:

  • Ten of the 11 S&P 500 sectors still closed lower.
  • The information technology sector (-1.6%) the weakest with Apple (AAPL 174.33, -1.41, -0.8%), Microsoft (MSFT 328.34, -11.06, -3.3%) and Adobe (ADBE 614.86, -43.44, -6.6%).
  • Defensive areas gained with real estate (+1.3%), utilities (+1.2%), consumer staples (+1.2%), and health care (+0.9%) sectors higher. 

Markets YTD

  • S&P 500 +23.4% YTD
  • Nasdaq Composite +18.2% YTD
  • Dow Jones Industrial Average +16.1% YTD
  • Russell 2000 +9.4% YTD

Bonds

In the Treasury market, the 2-yr yield increased two basis points to 0.66%, and the 10-yr yield increased one basis point to 1.44%. 

News Highlights

  • Pfizer (PFE 55.54, +0.34, +0.6%) specified its COVID-19 oral antiviral reduced the risk of hospitalization or death in high-risk patients by 89% when taken within three days of symptom onset. PFE shares rose to an all-time high. 
  • The NFIB Small Business Optimism Index increased to 98.4 in November from 98.2 in October.

US Producer Price Inflation Continue Rising At Record Pace in November

US Producer price inflation continues elevated, a long way from the Central Bank transitory mantra. Annual PPI rose to 9.6% in November. Over 60 percent of the October increase can be traced to a 1.2 percent rise in prices for final demand goods. This was the largest increase since data were first calculated in December 2009.

Read More: US Producer Price Inflation Continue Rising At Record Pace in November – TRADERS COMMUNITY

Tomorrow US Data Watch

08:30     NY Empire State Manufacturing Index (Dec)        

08:30     Retail Sales (Nov)

10:00     Business Inventories (MoM) (Oct)

10:00     NAHB Housing Market Index (Dec)

10:00     Retail Inventories Ex Auto (Oct)

14:00     Fed Interest Rate Projection  

14:00     FOMC Economic Projections                                                         

14:00     FOMC Statement                                                             

14:00     Fed Interest Rate Decision

14:30     FOMC Press Conference                                                                 

16:00     US Foreign Buying, T-bonds (Oct)             

16:00     Overall Net Capital Flow (Oct)    

16:00     TIC Net Long-Term Transactions (Oct)    

16:00     TIC Net Long-Term Transactions including Swaps (Oct)   

Tuesday Earnings Include

  • Lennar earnings and Eli Lilly analyst meeting

Trust you all had a great day, sleep well and get your trading plan sorted.

Any questions please feel free to ask them below. Trade Smart!

Leave a Reply

Your email address will not be published. Required fields are marked *