THE GIST (“THE WHAT”)
Trading sideways for most part of the session, a late session jump pushed the S&P 500 index higher to close with a decent gain of 29.71 points (0.67%) at 4439.25 on hopes that key inflation data release this week could suggest continued easing of price pressures.
Note: Our daily “S&P 500 Trading plan” will be posted around 9:30/10:00am EDT, every trading day.
Trading Plans for TUE. 07/11: Waiting on Inflation and Earnings Numbers – Day 2
For the last published Results of the Morning Trading Plans, please click here
THE DETAILS (The “How & Why”):
Markets are keenly awaiting the crucial CPI inflation data release tomorrow and PPI report on Thursday broadly expecting easing of price pressures and anticipating an end to Fed’s rake hiking cycle. The 10-year Treasury note yield fell 0.8 basis point to settle at 3.986%.
Positive comments by New York Fed President Williams also lifted sentiment after he said that he does not foresee a recession. Although, he lowered his growth forecast for the next year as an effect of credit tightening.
Energy sector was the strongest gainer in today’s session alongside sharply higher oil prices. Oil prices rallied 2% amid hopes of higher demand and supply cuts of OPEC. APA Corp led the gainers within the energy sector with a sharp 6.27% rally. Schlumberger, Haliburton, and ConocoPhillips all closed higher by more than 4% each.
Newell Brands was the strongest gainer within the index, surging 11.1% after the maker of Rubbermaid food containers, Sharpie pens, and Coleman coolers received a buy recommendation from Canaccord Genuity. maker Activision Blizzard was another sharp gainer, jumping 10% amid reports that the videogame maker could go ahead with its planned acquisition by Microsoft.
Bank stocks also traded higher ahead of the second-quarter earnings releases. JP Morgan Chase jumped 1.56% following stock upgrade by Jefferies from hold to buy.
On the bearish side, Verisign Inc led the losers with a 5.05% decline. Eli Lilly also slipped 3% after an European Medicines Agency announced that it is investigating a possible risk of suicidal tendency associated with its anti-obesity drug.