S&P 500 rises, but rising Treasury yields cap gains ahead of inflation report By

By Yasin Ebrahim 

-- The Hengyin Futures Boyi app latest version official website downloadS&P 500 climbed slightly Tuesday, but struggled for direction as Treasury yields rebounded ahead of the inflation report due later this week.

The rose 0.24%, the gained 0.25%, or 84 points, and the was up 0.58%.

Communications services led the broader market higher, underpinned by a rally in Netflix Inc (NASDAQ:), Meta Platforms (NASDAQ:), and Warner Bros Discovery (NASDAQ:).

Warner Bros. Discovery rallied more than 7% after Bank of America added the stock its best ideas list. “We anticipate ’23 will be the beginning of our growth and deleveraging thesis for WBD,” BofA said.

Defensive corners of the market including consumer staples and utilities, which tend to serve as a bond proxy, fell as rallied 3%, clawing back losses from a day earlier.

Big tech, meanwhile, traded mostly higher, with Apple Inc (NASDAQ:) and Microsoft Corporation (NASDAQ:) in the green, with the latter supported by a positive note from Wedbush.

“While Azure growth has clearly decelerated in the field we believe MSFT should be able to exceed its 37% Azure growth target (constant currency) in the December quarter when Redmond reports earnings in late January,” Wedbush said in a note, citing recent conversations with Microsoft customers and partners.

Treasury yields rebounded from a day earlier as investors weigh up hawkish commentary from the Federal Reserve officials including chairman Jerome Powell this week. 

Federal Reserve Chairman Jerome Powell didn’t provide any fresh clues on monetary policy, but indicated the central’s bank resolve, saying that unpopular decisions may be needed to bring inflation down.

[R]estoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy,” the chairman said in prepared remarks.

The remarks echoed that from other Fed members including San Francisco Fed President Mary Daly and Atlanta Fed President Raphael Bostic who insisted the Fed will have to keep rates higher for longer.

The inflation report due Thursday is expected to show a slowdown in .

“We expect a 0.06% decline in headline CPI (vs. flat consensus), which would lower the year-over-year rate to 6.43% (vs. 6.5% consensus and down from a peak of 9%), as lower gasoline prices offset higher food prices,” Goldman Sachs said in a note.

On the earnings front, (NASDAQ:) reported a wider than expected fiscal , but its shares rallied 20%. The home goods retailer is also believed to have begun its latest round of jobs cuts as it fights for its financial life, CNBC reported.

(NASDAQ:) rallied more than 6% after detailing plans to slash its workforce by 20% as the cryptocurrency exchange ramps cost cuts amid a weaker crypto backdrop.

In other news, Amazon.com Inc (NASDAQ:) said it was expanding its prime buy service, which allows merchants to offer prime benefits including free shipping and returns on their own site.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!