US equities open broadly higher, for what is a ‘buy the hot CPI news’ event. S/t momentum is prone to turning positive by late morning. WTIC printed $99.70. Gold $1977s. USD is churning around DXY 100.00.
sp’60min
VIX’60min
Summary
Headline CPI y/y: 8.5% vs 7.9% prior
Ex food/energy y/y: 6.5% vs 6.4% prior
So, the inflation data was broadly inline. The 9s are clearly coming though, whether its within May or June… it makes little difference.
As for equities, I don’t trust the opening gains. A foray <4400 still seems more likely than not.
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notable Dow component: CSCO
Cisco hit by two downgrades from C and MS. Opening reversal.
Tech giants still struggling, as the frequency of downgrades IS increasing.
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notable weakness: OXY
Occidental bouncing with the sector, partly main market, and partly WTIC $99s. Nat’ gas printing $6.84 is not something to overlook either.
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notable steel: CLF
Bouncing with the main market, but still s/t broken.
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notable miner: GOLD
Barrick Gold higher with the sector, helped with gold $1977s