By Sara Sjolin and Anora M. Gaudiano, MarketWatch
CPI rises 0.2% in April, core CPI ticks 0.1% higher
The Dow Jones Industrial Average was on track to match its
longest win streak since February on Thursday, with U.S. stocks
rising broadly as investors read a report on consumer inflation
data and jobless claims as underlining an economy that is healthy,
but not running too hot to merit a more aggressive pace of
increases to borrowing costs by the Federal Reserve.
What are markets doing?
The Dow Jones Industrial Average rose 236 points, or 1%, to
24,780. If the blue-chip index closes higher, it will be the sixth
consecutive day of gains, the longest stretch in more than two
months.
The S&P 500 was up 27 points, or 1%, to 2,724 with all 11
main sectors trading higher. Health-care, telecoms, materials and
technology shares were leading gains, up more than 1%.
The Nasdaq Composite Index advanced by 69 points, or 0.9%, to
7,408.
What is driving the markets?
The recent upbeat mood on Wall Street extended into Thursday,
with traders largely shrugging off fresh geopolitical concerns that
came after President Donald Trump pulled the U.S. out of the Iran
nuclear deal.
Better-than-expected economic data added to positive sentiment
on Wall Street. A rise in confidence among investors could be seen
from the steady decline in implied volatility, as measured by the
Cboe Volatility Index . So-called Wall Street's 'fear gauge' has
been falling for the past five sessions, trading near 12.97,
touching its lowest level since late January.
What data are in focus?
The consumer-price index
(http://www.marketwatch.com/story/consumer-price-index-climbs-02-in-april-2018-05-10)rose
0.2% in April, while core CPI, which strips out food and energy,
rose a smaller 0.1% last month.
The number of people who applied for first-time U.S.
unemployment benefits
(http://www.marketwatch.com/story/us-jobless-claims-stick-near-49-year-low-of-211000-2018-05-10)in
early May stood at 211,000 for the second straight week, near a
49-year low.
What are strategists saying?
"This was a far cry from the great leap many inflation alarmists
have been fearing. We're still well within the Fed's 2% comfort
level, so some will say we're right where we need to be," said Mike
Loewengart, vice president of investment strategy at E*Trade.
"Markets are continuing to react to Trump's decision to pull the
U.S. out of the Iranian sanctions waiver, however, it is very
interesting to see there has not been a significant safe haven flow
that has arisen, in fact risk appetite is looking quite positive,"
said Richard Perry, market analyst at Hantec Markets, in a
note.
What stocks are in focus?
Shares of Roku Inc.(ROKU) rallied 4.6% after the streaming
company late Wednesday reported forecast-beating earnings and
issued better-than-expected second-quarter guidance.
Read:Roku earnings show cheap gadgets are having desired effect,
stock gains
(http://www.marketwatch.com/story/roku-earnings-show-cheap-gadgets-are-having-desired-effect-stock-gains-2018-05-09)
Shares of L Brands, Inc.(LB) slumped 3.8% after the parents of
Victoria's Secret issued a profit warning.
U.S.-listed shares of Royal Bank of Scotland Group PLC(RBS.LN)
jumped 4.3% after news it will pay $4.9 billion in a settlement
with the U.S. Department of Justice
(http://www.marketwatch.com/story/rbs-to-pay-49-billion-in-settlement-with-department-of-justice-2018-05-10)
over its role in the mis-selling of toxic mortgage-backed
securities between 2005 and 2007. The settlement was smaller than
feared and is seen as clearing the way for the U.K. government to
sell its 71% stake it still holds in the lender.
AMC Entertainment Holding Inc.(AMC) jumped 3% after profit and
revenue rose well above forecasts
(http://www.marketwatch.com/story/amc-networks-stock-set-to-surge-after-profit-and-revenue-rise-well-above-expectations-2018-05-10).
NVIDIA Corp.(NVDA) and News Corp. (NWS.AU) are slated to release
results after the closing bell. News Corp. is the owner of
MarketWatch, the publisher of this report.
Read:Data center, gaming momentum need to distract from auto,
crypto weakness for Nvidia
(http://www.marketwatch.com/story/nvidia-earnings-data-center-gaming-momentum-need-to-distract-from-auto-crypto-weakness-2018-05-08)
What are other markets doing?
Asian markets
(http://www.marketwatch.com/story/asian-markets-lifted-by-wall-street-oil-prices-2018-05-10)
closed mostly higher, while European stocks
(http://www.marketwatch.com/story/european-stocks-rise-for-5th-day-as-banks-rally-after-rbs-settlement-2018-05-10)
traded mixed. The U.K.'s FTSE 100 index rose slightly after the
Bank of England's Monetary Policy Committee left key interest rate
unchanged on so-called "Super Thursday" -- when its meeting minutes
and quarterly inflation report are released at the same time.
Read:The pound at $1.3850 or $1.3350? It all rests on the BOE's
'Super Thursday', ING says
(http://www.marketwatch.com/story/the-pound-at-13850-or-13350-it-all-rests-on-the-boes-super-thursday-ing-says-2018-05-09)
The decision to abandon the accord and reimpose sanctions on the
Middle Eastern country sparked a rally in oil prices on Wednesday.
On Thursday, after briefly touching the highest level since
November 2014
(http://www.marketwatch.com/story/oil-climbs-further-supported-by-fresh-middle-east-tensions-2018-05-10),
West Texas Intermediate crude pulled back, trading 0.1% lower at
$71.03 a barrel.
Read:Oil and the dollar are doing something they have only done
11 times in the past 35 years
(http://www.marketwatch.com/story/oil-and-the-dollar-are-doing-something-they-have-only-done-11-times-in-the-past-35-years-2018-05-09)
The dollar declined against most other major currencies
(http://www.marketwatch.com/story/dollar-edges-back-for-second-day-with-us-inflation-data-on-deck-2018-05-10),
while gold inched 0.6% higher.
--Barbara Kollmeyer contributed to this report
(END) Dow Jones Newswires
May 10, 2018 13:05 ET (17:05 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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