Posted on 02/13/2024 7:41:14 AM PST by Red Badger
Stocks dropped on Tuesday after hotter-than-expected inflation data for January spiked Treasury yields and raised doubts that the Federal Reserve would be able to cut rates several times this year, a key part of the bull case for the equity market.
The Dow Jones Industrial Average lost 464 points, or 1.2%. It had earlier in the day slipped more than 500 points, or 1.4%, in its biggest drop since March 2023, when it fell 1.63%. The S&P 500 slid 1.2%, and the Nasdaq Composite fell 1.3%.
The consumer price index rose 0.3% in January from December. CPI was up 3.1% on an annual basis. Economists polled by Dow Jones expected CPI to have increased by 0.2% month over month in January and 2.9% from a year earlier.
Core prices, which exclude volatile food and energy components, rose 0.4% month over month and 3.9% from a year ago. Core CPI was expected to have increased 0.3% in January and 3.7% from a year earlier, respectively.
“This may well come as a easy excuse to take some of the froth out of the top of this market that’s been universally higher thus far this year,” said Art Hogan, chief market strategist at B. Riley Financial. “The CPI was, as reported today, just a touch hotter than expectations and proof positive that we’re not on a linear path, but we’re on a path headed lower.”
The 2-year Treasury yield jumped above 4.6%, and the 10-year yield topped 4.27% following the CPI data. Tech shares including Microsoft and Amazon , which have led the market run to record highs as rates declined, led the losses in trading Tuesday. Microsoft lost 1.6%, while Amazon fell 1.1%.
Wall Street is coming off a mixed session in which the Dow closed at a record, while the S&P 500 ended the day down slightly along with the Nasdaq. All three of the major averages are riding a five-week winning streak.
In corporate news, JetBlue Airways spiked 13% after activist investor Carl Icahn reported a nearly 10% stake in the airline. Toymaker Hasbro lost nearly 6% after missing analyst expectations for the fourth quarter. Shares of Avis Budget Group slipped 17% on the back of disappointing fourth-quarter revenue.
So what? It never goes the way expects or that it should. All of it is completely rigged.
But wait, Sleepy Joe said he fixed the inflation that Trump caused. How can this possibly be happening?
Bidenomics. The gift that keeps on taking and taking.
“So what? It never goes the way expects or that it should. All of it is completely rigged.”
Been a good run. I expected some sell off. people that say it is totally rigged don’t understand how to invest.
Joe will blame it on shrinkage.
“people that say it is totally rigged don’t understand how to invest.”
This.
But the Whitehouse said Bidenflation was only 3.1%
I woke up a little early today, turned on the tv and a news alert popped up about the “hot inflation” number of 0.3% for January, and the dow was down over 250 points.
Then I grabbed my iPhone and the Apple News had a headline saying something like “inflation continues to moderate improving the Biden economy”.
It’s propaganda everywhere.
Maybe “Ersatz Haderach” would be more accurate.
Good excuse to take some profits and then jump back in at a lower price, rinse and repeat.
No its not “completely rigged.” A huge amount is speculative, but if you concentrate on buying good companies, you make money.
About 5 years ago I bought a sizeable number of Costco shares. Have you ever been to Costco where its NOT crowded? Clearly a great company with robust sales. I’ve more than doubled my money.
Thats just one example (I won’t share the duds, because I’ve had a few). But those insisting its “all rigged” have no idea how investing works.
“Good excuse to take some profits and then jump back in at a lower price, rinse and repeat.”
Still a bull market. Riding my profits!
YES!.............................
“Tell that to the people who got swindled by Wall Street during the GameStop episode.”
Obviously you don’t understand investing. You gambled and lost.
ROFL!
Oh goody, stocks are on sale again
GameStop was a stupid investment, period. Underlying fundamentals were terrible. Anyone investing in this stock has no business investing in individual stocks and deserved whatever losses they took.
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