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In the Know - End of Day Market Wrap - 05-11-2022

Date Published:

Stocks were down... again.

The U.S. April CPI measure came in at 8.3%, below March's 8.5%, but above the mean forecast for 8.1%. Similarly, Core CPI came in at 6.2%, lower than March's 6.5%, but above the consensus estimate of 6.0%.

CPI Percent Change Month-to-Month (One-year)

CPI Percent Change Month-to-Month (One-year)

The result... more selling. 

SPX 3,935.25 -65.80 (-1.64%)
NASD 11,364.24 -373.44 (-3.18%)
DJIA 31,834.37 -326.37 (-1.01%)
R2K 1,719.11 -42.68 (-2.42%)
VIX 32.70 -0.29 (-0.88%)
Oil 105.09 +5.33 (+5.34%)

• Airfares grew 33% year over year in April and up nearly 19% in April alone.

• The MBA Purchase Index in the United States increased 4.5% to 255.40 points in the week ended May 6th 2022, despite a rise in borrowing costs as the spring housing market enters its historically busiest time data shows.

Headlines of the Day
CPI Comes in Above Forecasts, But Below March's Level
US consumer prices rose by more than forecast in April, indicating inflation will persist at elevated levels for longer and keeping the Federal Reserve on the path of aggressive interest-rate hikes.

Wall Street Is Trying Desperately to Catch Up With Stock Rout
Researchers who focus on single stocks -- the buy/hold/sell crowd that weighs in when results are disclosed and almost always predicts shares will go up -- are slashing price targets for S&P 500 firms at the fastest pace since the pandemic crash in 2020. Altogether, their projected price level for the index fell 11 weeks in a row, the longest stretch of declines in a decade, data compiled by Bloomberg show.

Bitcoin is down about 34% this year, having slipped below $30,000 on Tuesday. By contrast, the Nasdaq is down 25%. Crypto intelligence provider Glassnode reports that some 40% of Bitcoin holders are now underwater.
Crypto Volatility Is Crushing Stablecoins. Terra’s Unmooring Could Roil Bitcoin.

Thousands of Russia-Linked Ship Containers Pile Up in Rotterdam
Sanctions on Russia are snarling thousands of steel shipping containers, the boss of the port said in an interview that gave unique insights into how the beating heart of Europe’s real economy is being disrupted by the measures against Moscow.

Federal Surplus Reached Record in April as Taxes, Other Revenue Nearly Doubled
Federal revenue almost doubled in April compared with a year earlier, reaching a record and driving a monthly government surplus of $308 billion, which Treasury officials said also set a record for the largest monthly surplus.

Economic Data Results for 5-11-2022
United States Inflation Rate
Annual inflation rate in the US slowed to 8.3% in April from a 41-year high of 8.5% in March, but less than market forecasts of 8.1%.

United States Core Inflation Rate
The annual core inflation rate in the US which excludes prices of food and energy, eased to 6.2% in April of 2022 from 1982-highs of 6.5% in March, but above market forecasts of 6%.

United States MBA Purchase Index
The MBA Purchase Index in the United States increased 4.5% to 255.40 points in the week ended May 6th 2022, despite a rise in borrowing costs as the spring housing market enters its historically busiest time.

United States MBA Mortgage Applications 0 Mortgage applications in the US were up 2% in the week ended May 6th, a second consecutive increase, and despite a rise in borrowing costs as the spring housing market enters its historically busiest time. Applications to purchase a home surged 4.5% while those to refinance a mortgage loan fell 2%. The average contract rate on a 30-year fixed-rate mortgage jumped by 17bps to 5.53%, the highest since 2009.

Economic Data Due Tomorrow on 5-12-2022
United States Producer Prices Change

United States Producer Prices Final Demand Less Foods and Energy YoY

United States Continuing Jobless Claims

Initial Jobless Claims 07/MAY

Get the In the Know - End of Day Market Wrap


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