NatWest Markets global economics co-head Michelle Girard and Manulife Investment Management senior managing director Frances Donald analyze the CPI report on ‘Making Money.’
U.S. equity futures added to losses Friday morning, spurred by Thursday’s inflation report that sent stocks plummeting.
The major futures indexes have pared overnight losses suggesting a decline of 0.4% when the opening bell rings.
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Wall Street retreated on Thursday on news that U.S. inflation jumped 7.5% in January, raising expectations the Federal Reserve will need to move forcefully to cool the economy by raising interest rates.
St. Louis Federal Reserve President James Bullard suggested rates should be one full percentage point higher by July.
RED-HOT INFLATION GAVE MOST AMERICANS A PAY CUT IN JANUARY
The yield on the 10-year Treasury was at 1.99% Friday morning after topping 2% on Thursday for the first time since August 2019.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35241.59 | -526.47 | -1.47% |
| SP500 | S&P 500 | 4504.08 | -83.10 | -1.81% |
| I:COMP | NASDAQ COMPOSITE INDEX | 14185.641271 | -304.73 | -2.10% |
The S&P 500 fell 1.8% to 4,504.08, with more than 85% of its stocks ending lower after another day of sharp swings. The Dow Jones Industrial Average fell 1.5% to 35,241.59 and the Nasdaq composite slid 2.1% to 14,185.64.
One stock that bucked the trend was Disney. Shares rose after strong quarterly results. Additionally, Disney+ subscribers reached just under 130 million, sending shares up 3.3% even in a down market.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 152.16 | +4.93 | +3.35% |
| Z | ZILLOW GROUP INC. | 48.79 | -0.87 | -1.75% |
| EXPE | EXPEDIA GROUP INC. | 197.52 | +0.57 | +0.29% |
Shares of Zillow soared more than 16% in after-hours trading after the company reported a quarterly adjusted loss of 42 cents per share for the quarter ended in December. That was better than the estimate for a loss of $1.15 per share.
Shares of Expedia rose 5% in extended trading after a better-than-expected earnings report.
A separate report Thursday said fewer workers filed for unemployment last week than expected. That’s encouraging for workers, but it could add to upward pressure on inflation.
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Bitcoin traded around $43,000.
In Europe, London’s FTSE was off 0.4%, Germany’s DAX declined 0.4% and France’s CAC was down 0.6%.
In Asian markets on Friday, Hong Kong’s Hang Seng slipped 0.1%, while China’s Shanghai gave up early gains, sinking 0.7%. Japan’s markets were closed for a holiday.
In the day ahead, the University of Michigan releases its preliminary index of consumer sentiment for February. The Refinitiv estimate is 67.5, up slightly from January’s final reading of 67.2, which was the lowest in more than a decade.
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In other trading, U.S. benchmark crude oil added 20 cents to $90.07 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 22 cents to $89.88 per barrel on Thursday.
Brent crude, the price basis for international oils, gained 5 cents to $91.45 per barrel.
The Associated Press contributed to this report.
