4.05pm: Nasdaq drops nearly 3%
US stocks finished the trading session sharply lower as weekly jobless claims for first-time unemployment filings unexpectedly rose last week and the producer price index (PPI) jumped by the largest amount since 2010.
At the close, the Dow slipped 176 points to 36,114, while the S&P 500 eased 67 points at 4,659 and the tech-heavy Nasdaq fell 382 points to 14,807.
Bucking the trend was shares of The Boeing Company, which climbed nearly 3% following a Bloomberg News report that the aircraft maker’s 737 Max could resume service in China as soon as this month.
12:05pm: Wall Street mixed
US stocks were mixed at the midday point as investors mulled fresh data on the labour market and inflation.
At noon, the Dow Jones Industrial Average continued to climb, gaining 188 points, or 0.5% at 36,472 points, while the broader S&P 500 and tech-laden stock index Nasdaq Composite both dropped by 0.1% and 0.7%, respectively.
“The data today looks a mixed bag on the face of it, with jobless claims coming in a little higher than expected, which may be down to seasonal adjustments,” said Craig Erlam, senior market analyst, UK and EMEA, OANDA. “The overall trend remains positive and continues to point to a tight labor market.”
Erlam noted that the producer price index (PPI) data on the other hand will be welcomed, with the headline number slipping to 0.2% month on month. “Perhaps a sign of supply-side pressures finally starting to abate which will come as a relief after inflation hit a near-40 year high last month.”
Experts are, however, turning to the earnings season for respite.
“Perhaps earnings season will bring some welcome normality to the markets after a period of fear, relief, and speculation,” said Erlam. “The fourth quarter is expected to have been another strong quarter, although the emergence of omicron will likely have had an impact during the critical holiday period for many companies.”
10.50am: Proactive North America headlines:
Mandalay Resources beats 2021 production guidance with nearly 39,000 ounces delivered in 4Q
Co-Diagnostics (NASDAQ:CODX) says CoSara JV wins Indian regulatory clearance to sell its SARAGENE Human Papillomavirus High-Risk Real-Time PCR test
Belmont Resources identifies five high priority drill targets at CBC property in British Columbia
Healixa (OTC:EMOR) adds muscle to its advisory board with the addition of healthech executive Diane Koontz
Northstar Gold expands Allied Syenite Gold Zone and makes new gold-copper discoveries at its Miller Gold property in Ontario
Cloud DX (TSX-V:CDX, OTCQB:CDXFF) receives new partnership funding for clinical research of its Pulsewave 2.0 wrist-worn vital sign monitoring device
Thunderbird Entertainment appoints Jérôme Levy to its board of directors
American Battery Technology delivers first Tonopah Flats Lithium samples for analysis
Railtown AI Technologies inks deal with Vivos Solutions for data protection
Altiplano Metals releases new high-grade copper assays from its Farellon drill program
Essex Minerals enters into binding terms with First Au for arm's length option, earn-in, and acquisition of Mt Turner project in Australia
Manganese X says Disruptive Battery Corp subsidiary and JV partner PureBiotic AIR advance regulatory and certification registrations
CLS Holdings USA (CSE:CLSH, OTCQB:CLSH) posts revenue growth of 10% in fiscal 2Q off the back of its City Trees branded products
Vicinity Motor says Proterra battery technology to power its electric transit buses and work trucks
HealthLynked (OTCQB:HLYK) updates coronavirus (COVID-19) Tracker Application to include confirmed Omicron variant cases
Evergold discovers high-grade copper and silver samples at its Golden Lion property in British Columbia
Mydecine to launch Special Access Support and Supply Program broadening access to psychedelic-assisted psychotherapy for patients
FansUnite says new subsidiary American Affiliate demonstrating strong sales growth and operational performance
Audacious completes transaction to acquire Lo͞oS as it expands across California
Delta 9 flags strong rise in 4Q revenue to as much as $17.4M
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) strikes definitive agreement to buy Passworks SA for €400,000 to expand its digital wallet pass portfolio
Silvercorp Metals reports high-grade intercepts from extensive exploration at its HPG mine at Ying project
XPhyto signs Covid-ID distribution agreement for Czech Republic, with rollout planned for Hungary, Slovakia, Ukraine and Russia
Metal Energy announces the appointment of Mike Sweeny as the company's vice president, Exploration & Development
9.42am: US stocks start on front foot
US stocks started ahead as investors digested the latest producer price inflation (PPI), which showed a slowing in prices for goods following the hot consumer data earlier this week.
In early deals in New York, the Dow Jones Industrial Average added over 179 points to stand at 36,470. The broader-based S&AP 500 gained around 12 at 4,738, while the tech-laden Nasdaq Composite Index advanced 52 at 15,241.
US producer price inflation (PPI) slowed in December to 0.2% (the smallest increase for 13 months) compared to consensus of 0.4% as costs fell, indicating that inflation may have peaked and supply chains were starting to ease.
In the 12 months through December, PPI increased 9.7% after accelerating 9.8% in November. Reportedly, that's still one of the biggest 12-month increases since the index started back in 2009.
"The December U.S. reading likely marks the peak," said Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a note.
"Core PPI services inflation bumped up to a new high in December, at 7.9% y/y, thanks to an unfavorable base effect and a rebound in airline fares m/m, but this too should be the peak, given that the 3m/3m rate is now only 5.3% and falling. In short, PPI inflation is very elevated, but this report probably represents the high-water mark."
6.30am: US stocks seen opening up
US stocks are expected to open higher as attention shifts to US earnings season after consumer inflation data provided no additional shocks to interest-rate expectations.
Futures for the Dow Jones Industrial Average rose 0.15% in Thursday pre-market trading, while the broader S&P 500 index added 0.11% and those for the tech-heavy Nasdaq 100 gained 0.12%.
Stocks closed higher on Wednesday after the December reading for the consumer price index, a gauge of prices across a broad spectrum of goods, showed a year-on-year gain of 7%. While that is the biggest jump since 1982, it was in line with predictions.
The Dow rose by 38 points, or 0.11%, to 36,290 and the S&P 500 increased 13 points to 4,726, while the Nasdaq increased 0.23% to 15,188.
“US stock indices reacted positively to the four-decade high inflation read yesterday. The S&P 500 gained the most among the three major US indices thanks to a strong energy sector performance, and closed the session only 0.28% higher,” commented Ipek Ozkardeskaya, senior analyst at Swissquote.
“There is potential for further recovery in US equities given that the Federal Reserve hawks went ahead of themselves at the start of the year.”
Delta Air Lines (NYSE:DAL) reports 4Q results today, with large banks JPMorgan Chase, Citigroup and Wells Fargo due to report on Friday.