Wednesday, April 13, 2022

DJIA: 34,564.59, up 344.23
S&P 500: 4,446.59, up 49.14
Nasdaq: 13,643.59, up 272.02

S&P 500 snaps three day losing streak

U.S. stocks finished firmly higher on Wednesday as Wall Street assessed the unofficial start of first-quarter earnings season and another round of inflation data. The Dow climbed 344 points, while the S&P 500 jumped 1.1%, snapping a three-day losing streak. The Nasdaq Composite rallied 2%, posting its best day in nearly a month as Tech and growth-related led the gains.

Financials underperformed with JPMorgan Chase & Co. slipping 3.2% on mixed results that included a 42% drop in year-over-year profit, partly attributed to a sizeable loss related to the market fallout from Russia invading Ukraine. In other earnings, Delta Air Lines Inc. climbed 6.2% after delivering a smaller-than-anticipated quarterly loss and offering upbeat guidance on summer bookings. The positive outlook spurred a rally among other travel-related stocks, with American Airlines Group Inc. and Marriott International Inc. jumping 10.6% and 7.5%, respectively. In commodities, West Texas Intermediate crude added 3.6% to $104.26/barrel despite a larger-than-forecasted weekly buildup in domestic stockpiles.

Treasuries strengthened, with the yield on the 10-year note down three basis points (0.03%) to 2.69%. The more Fed-sensitive two-year note yield declined two basis points (0.02%) to 2.35% after yesterday dropping the most since late February (-0.13%) as a smaller-than-projected core Consumer Price Index (CPI) (ex-food and energy) eased expectations of ultra-aggressive monetary policy tightening from the Federal Reserve. Still, the headline CPI jumped 8.5% year-over-year, the most since December 1981. Investors evaluated another inflation reading today, with the Producer Price Index (PPI) climbing a larger-than-expected 11.2% year-over-year in March, representing the fastest pace on record.

Read more about it here.