April 12, 2022

Markets:

U.S. stock futures rose as the March consumer prices report showed inflation excluding food and energy costs were slightly less than expected.

Consumer prices for March increased 1.2% month-to-month and 8.5% annually, the Labor Department said on Tuesday. But traders were focusing on the core reading, which excludes volatile food and energy prices. Core CPI in March increased 0.3%, below the consensus economist estimate from Dow Jones of 0.5%. Core prices on an annual basis were up 6.5%.

The recent spike in U.S. inflation has helped increase expectations of tighter monetary policy from the Federal Reserve. The Fed raised rates at its March meeting, and it’s expected to hike more throughout the year.

Treasury yields have also jumped to multiyear highs. The benchmark 10-year Treasury yield traded at 2.801% on Tuesday, reaching levels not seen in more than three years. The 10-year number impacts mortgages and other loans for consumers.

Oil prices jumped Tuesday morning with the international benchmark Brent crude jumping 4.3% to $102.74 per barrel. Meanwhile, West Texas Intermediate crude futures gained 4.1% to $98.17 per barrel.

Wall Street was coming off a downbeat session, with the Dow and S&P 500 each falling more than 1%, while the Nasdaq dropped more than 2%.

Portfolio:

We enter the new trading session holding positions in TWTR, CLF, SCO, and itrm.  Markets are rocking this morning and taking many traders by surprise.  The day to day theme chasing continues to bite folks.  Trade a plan.  Be on alert today, expect new opportunities to trigger.  Let's have a great session and let's try to get a few profits booked this week.