US Markets Up and Roblox Surges as CPI Beats Forecasts
By On Wednesday, the Dow Jones Industrial Average edged up 0.1%, and the S&P 500 rose 0.3%, while the Nasdaq Composite pulled ahead 0.9%, and the small-cap Russell 2000 gained 1%.[0] The yield on the 10-year Treasury note (US10Y) increased by 5 basis points to 3.81%, while the yield on the 2-year note (US2Y) rose by 1 basis point to 4.[1] Roblox (RBLX) saw a sharp rise in activity amongst stocks after the gaming platform disclosed figures for Q4 which were better than anticipated for bookings. Roblox (RBLX) surged 26.4% after unveiling quarterly sales figures that exceeded expectations.
Retail sales increased by 3% last month, surpassing economists' expectations of a 1.8% rise.[2] The retail sales control group, which is included in U.S. GDP, increased by 1.7%, significantly greater than the predicted 0.8% growth.[2] After the data was released, US Treasury yields increased as traders increased their wagers that the Federal Reserve will raise rates even further.[3]
The price of Bitcoin futures rose 8% to $24, The Innovator IBD 50 ETF (FFTY) experienced an increase of[4] In the last 24 hours, Bitcoin has seen an 8.5% rise, with its current value at US$24,0 Devon Energy (DVN), an oil and natural gas producer, experienced a 10.5% decrease in price in the form of[4] Q4 adjusted earnings per share and sales numbers were lower than anticipated by the company.[4] The S&P 500 saw its biggest decline in stock today.[0]
US investor sentiment showed a slight improvement, according to the CNN Money Fear and Greed Index.[5] The 11 sectors that make up the S&P saw nine of them rise, with Communication Services and Consumer Discretionary coming out on top with increases of more than 1%.[1] A 1.8% decrease in Energy was seen, while Health Care experienced a slight dip.[1] Big tech stocks saw mostly positive gains, with increases of 1-2%, excluding Microsoft and Meta Platforms, which dropped by 1% and 1.3%, respectively.[6]
In January, the consumer price index (CPI) was 6.4% higher than expected on an annual basis, while the monthly increase of 0.5% met estimations.[7] Excluding food and energy, the core index increased by 0.[8]
0. “Stock Market Closed Mixed; Nasdaq Broke Its Winning Streak” Investor's Business Daily, 10 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/stock-market-on-track-for-a-down-week-medical-device-stock-shines
1. “Dow, Nasdaq, S&P 500 overcome lingering Fed fears to end choppy session higher” Seeking Alpha, 15 Feb. 2023, https://seekingalpha.com/news/3936612-dow-nasdaq-sp-500-end-higher-despite-choppy-trading-as-fed-fears-linger
2. “S&P 500 cuts losses as easing Treasury yields lift tech By Investing.com” Investing.com, 15 Feb. 2023, https://www.investing.com/news/stock-market-news/sp-500-cuts-losses-as-easing-treasury-yields-lift-tech-3004549
3. “Market Highlights: Big rally in US travel stocks, Bitcoin; and 5 ASX small caps to watch on Thursday” Stockhead, 15 Feb. 2023, https://stockhead.com.au/news/market-highlights-big-rally-in-us-travel-stocks-bitcoin-and-5-asx-small-caps-to-watch-on-thursday/
4. “Stock Market Indexes Pull Ahead In Final Hour; Etsy Posts Over 6% Gain” Investor's Business Daily, 15 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/the-stock-market-climbs-out-of-morning-hole-stock-soars/
5. “Investor Optimism Improves Further Following Retail Sales Report By Benzinga” Investing.com UK, 16 Feb. 2023, https://uk.investing.com/news/stock-market-news/investor-optimism-improves-further-following-retail-sales-report-2917103
6. “Strong retail sales buoy Wall Street with tech leading gains. Crypto pops” CMC Markets, 15 Feb. 2023, https://www.cmcmarkets.com/en/news-and-analysis/strong-retail-sales-buoy-wall-street-with-tech-leading-gains-crypto-pops
7. “U.S. Stocks Moving Back To The Upside Following Last Week's Pullback” RTTNews, 13 Feb. 2023, https://www.rttnews.com/3343733/u-s-stocks-moving-back-to-the-upside-following-last-week-s-pullback.aspx
8. “S&P 500, Dow turn positive on retail sales, CPI data fallout; Nasdaq enjoys third-straight winning day” Proactive Investors USA, 15 Feb. 2023, https://www.proactiveinvestors.com/companies/news/1006250/s-p-500-dow-turn-positive-on-retail-sales-cpi-data-fallout-nasdaq-enjoys-third-straight-winning-day-1006250.html
