What a ride! – Here’s what you need to know…

Stock Market Update for Wednesday, February 14th, 2018


What a ride!

Markets went crazy when CPI was released at 8:30am ET this morning.

The 0.5% CPI increase (vs. a 0.3% forecast) and 0.3% Core CPI increase (vs. a 0.2% forecast) sent futures all over the place.

With the increase, traders are worried about inflation all of the sudden (something they haven’t had to worry about for a while). Looking at the markets, inflation fears became obvious…DOW futures were trading at 24,771 when CPI Data was released. 5 minutes later the DOW was trading at 24290, almost 500 points lower!

With the news, bonds dumped all day and 10-Year Notes (ZN) hit fresh 4-year lows.

But the major indices shook off the early sell-off like a champ, wrapping up the day with 1.0% – 1.9% gains across the board!

Here’s where the major indices ended the day:

  • The S&P finished with a 1.3% gain. Up 36 points, the S&P ended at 2,699.
  • The DOW ended 1.0% higher. Adding 253 points, the DOW closed at 24,893.
  • The NASDAQ was up 1.9% With a 130 point gain, the NASDAQ finished at 7,144.
  • Bitcoin was up 7.6%. Adding $645, Bitcoin is trading at $9,275.

Crude Oil (CL) had a wild day as well. Up 2.3%, CL finished at $60.57 a barrel. Today’s Crude Oil Inventories showed a 1.8 million barrel increase in inventories vs. a 2.8 million barrel increase that was expected.

Fossil Group (FOSL) is back in fashion after a solid quarter nonetheless. The stock was up 87.7% today!

And Chipotle (CMG) has a new boss: Ex-Taco Bell CEO. That’s all it took to put a lid on the relentless selling. CMG ended the day 15.4% higher.

Today traders had a chance to see what Warren Buffett has been up to. Today’s 13D SEC filings (reports made to the SEC if a trader/company takes a 5% position or larger of a publicly traded company) showed that Berkshire Hathaway added to its Apple (AAPL) position and dropped shares of IBM (IBM). The more surprising part, Berkshire is taking a stake in Teva (TEVA) which is up around 8% in after-hours trading.]

We’ll have some earnings to digest tomorrow. Shopify (SHOP) is reporting tomorrow morning. Cisco (CSCO), Marriot (MAR), and Applied Materials (AMAT) are after the bell.

Looking at the economic calendar we have PPI Data, Empire State Manufacturing, Philly Fed Manufacturing and Unemployment Claims at 8:30am ET.

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.

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