Wall Street Desks Warn CPI Report May Upset Stock-Market Calm

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Bloomberg أخبار

Andrew Tyler,Consumer Prices,Market Intelligence

(Bloomberg) -- From JPMorgan Chase & Co. to Citigroup Inc., Wall Street’s most prominent trading desks are warning that investors should gear up for a...

-- From JPMorgan Chase & Co. to Citigroup Inc., Wall Street’s most prominent trading desks are warning that investors should gear up for a potential break in the calm that’s come over the market.Putin Names Economist as Defense Minister in Surprise Reshuffle

But if core CPI comes in between 0.3% and 0.35% from the prior month — near JPMorgan and consensus forecasts — the S&P 500’s outcome ranges from a 0.5% loss to a 1% gain, depending on whether rent inflation remains elevated, Tyler added. Any outcome where the core month-over-month declines sequentially will be “read as a positive by the market,” especially if the figure comes in below 0.2%, which may even revive bets for a June rate cut and send the S&P 500 higher by 2% to 2.

Overall, the slide in volatility and lower premiums for puts has made broader stock market hedging more attractive, and some VIX call spread buying was seen last week and Monday. Kate Winick was reassured that "companies just want to hire the right people" after being laid off from her director role at Peleton last year while pregnant—she's still job hunting.NVIDIA Corporation , Coinbase Global, Inc. , Interactive Brokers Group, Inc. and Robinhood Markets, Inc. are expected to benefit once the cryptocurrency rally resumes.

Walmart's earnings amid signs of weaker discretionary spending could add fuel to a rally that has propelled its shares to record highs, or potentially spook investors looking to justify the heavyweight retailer's pricey valuation. As Walmart gears up to report its first-quarter earnings on Thursday, Americans continue to spend heavily online, driven by demand for cheaper products.

 

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