Two-day stock rally at risk for signs of inflation

Two-day stock rally at risk
 for signs of inflation

U.S. stocks fell on Tuesday, suggesting the best two-day stretch for major indexes in months would not be stretched into a third following a plunge after their worst weekly performance since early 2016 last week. Trading was relatively subdued, following several sessions with 1% moves in both directions. Investors may be holding off on the future of inflation, which may have been illuminated. What are main benchmarks doing? The Dow Jones Industrial Average DJIA, -0.43% fell 111 points, 0.4% gold, to 24.493. The S & P 500 SPX, -0.36% slipped 11 points, 0.4% gold, to 2,646. The Nasdaq Composite Index COMP -0.14% was down 27 points to 6.944, down 0.4%. Major indexes are coming off their second straight with a 1% advance, a rally that represents the best two-day winning percentage for the Dow since 2015, and the best such stretch for both the S & P and the Nasdaq since June 2016. However, all major major indexes remain last 7 months ago, record 3, last massive declines seen over last week. Less than halfway through February, the market has already matched the number of 1% moves seen over all of 2017. Need to know: ‘Risks of a recession’ are rising, says Ray Dalio What’s driving the markets? Opinion: Blame machines for the market’s wild swings, but the answer is all on you In addition, there was hesitation overseas, with European stocks failing to follow Wall Street’s lead and Asia giving up some gains by the close. The next big clue for market direction could come from Wednesday’s January consumer price inflation data. There are concerns that the CPI comes into higher expectations, as well as its effects on the state of the world. See: Why Valentine’s Day may be the next big test for the stock market Economists polled by MarketWatch are expecting at 0.4% rise for headline inflation, and a 0.2% gain for core inflation, which strips out food and energy costs. Investors have also considered a $ 4.4 trillion federal budget that U.S. President Donald Trump has proposed, which would see the deficit nearly double in 2017 and rise to $ 7 trillion over the next decade. Of course, few expect the budget in its current form will be enacted by Congress, especially given it pushes for deep cuts in social programs. But the ballooning of the deficit. Read: Here’s the nagging question at the heart of the stock-market selloff What are strategists saying? “If inflation continues to pick up, the equity market will continue to struggle from here. If worries about inflation come true, the problem is that they will not have a choice of goals, but that they will not have an impact on the equity markets but also the real economy, “said Nick Clay, lead manager of the BNY Mellon Global Equity Higher Income Fund. “The recent 10% correction basically just unwound the earnings we saw over January. Valuations remain high; the U.S. is one of the most expensive markets in the world. I think volatility will remain elevated, and we will see another 15% downside. Only then will valuations start to become a little more reasonable. ” Read: 5 great questions Americans are asking about the market’s crazy ride Which stocks are active? AmerisourceBergen Corp.

ABC, + 7.74% shares jumped 12% after Walgreens Boots Alliance Inc.

WBA, + 0.54% reportedly made a takeover approach for the drug distributor, The Wall Street Journal. Shares of Walgreens rose 1.1%. Under Armor Inc.

AU, + 16.69% pink shares 12% after the sports gear maker posted stronger-than-expected revenue. Blue Apron Holdings Inc. APRN, + 5.97% jumped 20% after losses that were smaller than expected and . PepsiCo Inc.

PEP, + 0.25% fell 0.5% after the company reported fourth-quarter results that showed a decline in the value of a snack and a snack, but it was also reported as a new buyback program. Cisco earnings: High hopes pinned to return to revenue growth Amazon.com Inc.

AMZN, + 1.61% rose 0.9%. Earlier, a report read the e-commerce retailer will lay off hundreds of workers, General Motors Co.

GM -0.95% was little changed after the auto maker said it would close an auto plant in South Korea , affecting 2,000 workers and leading to a charge of $ 850 million. What’s the economic docket? Cleveland President Fed Loretta Mester said the sharp moves in the stock market over the past 10 days remain “far away” from being large enough to spill over and damage the economy. The index of small-business optimism from the National Federation of Independent Businesses climbed two points to a reading of 106.9 in January. What are other assets doing? Europe stocks

SXXP, -0.23%

traded lower , while in Asia, Japan’s Nikkei 225 NIK -0.65% dropped 0.6%, bucking has mostly strong session for other indexes . The dollar was under pressure , chiefly against the Japanese yen USDJPY, -1.09% dropping 0.9% to ¥ 107.72. The ICE U.S. Dollar Index DXY, -0.45% fell 0.54% to 89.722. Gold futures GCG8, + 0.13%

pink 0.4% as the dollar weakened . The yield on 10-year notes TMUBMUSD10Y, -0.73% was 2.84%. Read : This chart warns that the 30-year downtrend may be over Crude oil CLH8, -0.96% moved lower. The International Energy Agency said booming U.S. shale supply will likely overwhelm this year . Bitcoin BTCUSD, -3.49% slipped around 4% to $ 8,544. Sign up here to get your message delivered to your email box.

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