Day Traders Diary

5/15/24

The major averages are performing well thanks to lighter-than-expected U.S. consumer inflation report out this morning. The Dow Jones Industrial Average is up 150 points or 0.38%. The S&P 500 is up 18 points or 0.35% while the Nasdaq rose 41 points or 0.29%.

The CPI rose 0.3% for the month of April, less than the Dow Jones estimate for a 0.4% monthly increase. The gauge increased by 3.4% year over year, in line with expectations. Monthly and yearly numbers for core CPI, which excludes volatile food and energy prices, were both in line as well. The report boosted expectations for Federal Reserve rate cuts in the near future. Fed funds futures trading data now suggests a 51.7% likelihood that the U.S. central bank will ease rates at its September meeting, according to CME FedWatch Tool.

The yield on the 10-year Treasury is down 7 basis points to 4.371%. The 2-year Treasuryyield is down 6 basis points at 4.753%.

AMC and GameStop shares are down sharply in early morning trading as momentum fizzled from the meme stock craze, which was reignited Monday by a social media reappearance from "Roaring Kitty."

After a miserable April, the markets are performing well once again. The S&P 500 is up more than 10% year to date.