Wall Street in Wait-and-See Mode Before CPI Data: Markets Wrap

The stock market saw another session of mild moves as traders remained hesitant to make any significant bets in the run-up to key inflation data that will help shape up the outlook for the Federal Reserve’s next steps.

(Bloomberg) — The stock market saw another session of mild moves as traders remained hesitant to make any significant bets in the run-up to key inflation data that will help shape up the outlook for the Federal Reserve’s next steps.

With less than 24 hours left for the release of June’s consumer price index, the S&P 500 fluctuated and traded near its 4,400 mark. Treasury two-year yields, which are more sensitive to imminent Fed decisions, rose while remaining well below the 5% threshold. The dollar was little changed.

“I anticipate it to be a quieter day,” said Alex Coffey, TD Ameritrade senior trading strategist. “Now we’re at that sort of fork in the road, it seems, where we still have the Fed fighting inflation, inflation is showing signs of moderating. It’s going to go one of two ways — we’re either going to navigate this soft landing and all will be well, or we’re not, and we’re going to start to see things show signs of deterioration.”

In corporate news, Amazon.com Inc. rebounded after sliding 2% on Monday as the company kicks off its annual Prime Day event. JPMorgan Chase & Co. climbed after being raised to buy from hold at Jefferies. Uber Technologies Inc. Chief Financial Officer Nelson Chai is planning to leave the ride-hailing company, according to people familiar with the matter.

Key events this week:

  • Canada rate decision, Wednesday
  • Bank of England Governor Andrew Bailey speaks, Wednesday
  • US CPI, Wednesday
  • Federal Reserve issues Beige Book, Wednesday
  • Fed speakers include Neel Kashkari, Loretta Mester, Raphael Bostic, Wednesday
  • China trade, Thursday
  • Eurozone industrial production, Thursday
  • US initial jobless claims, PPI, Thursday
  • US University of Michigan consumer sentiment, Friday
  • US banks kick off earnings, Friday

Some of the main moves in markets:

Stocks

  • The S&P 500 was little changed as of 9:43 a.m. New York time
  • The Nasdaq 100 fell 0.2%
  • The Dow Jones Industrial Average rose 0.3%
  • The Stoxx Europe 600 rose 0.7%
  • The MSCI World index rose 0.3%

Currencies

  • The Bloomberg Dollar Spot Index was little changed
  • The euro fell 0.2% to $1.0983
  • The British pound rose 0.3% to $1.2898
  • The Japanese yen rose 0.3% to 140.86 per dollar

Cryptocurrencies

  • Bitcoin fell 1.4% to $30,349.17
  • Ether fell 1.4% to $1,866.66

Bonds

  • The yield on 10-year Treasuries was little changed at 4.00%
  • Germany’s 10-year yield was little changed at 2.64%
  • Britain’s 10-year yield advanced two basis points to 4.66%

Commodities

  • West Texas Intermediate crude rose 0.8% to $73.60 a barrel
  • Gold futures rose 0.3% to $1,936 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Jason Scott, Tassia Sipahutar, Robert Brand, Carly Wanna and Vildana Hajric.

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