Daily Market Wisdom with Nick Santiago

1. The CPI report was released earlier today. On a year-over-year basis, total CPI was up 5.0%, versus up 6.0% in February. That is the smallest 12-month increase since May 2021. Core-CPI was up 5.6% year-over-year, versus up 5.5% in February. All I care about is the market reaction to the news and today the major indexes are slightly higher. At this time, the daily trend is still higher and until...

1. The major stock indexes are starting out on the weaker side again. Traders and investors are coming off of a 3-day weekend where the market was closed last Friday. Last Friday, the non-farm payroll report was released and it told us that 236K new jobs in March. Does this put the Fed in play to keep raising rates at the next meeting? Time will tell. 2. Traders should note, despite yields pulling...

1. Today, the big story over the weekend is from OPEC +. They announced that they will begin a 1.16 mln barrel per day production cut starting in May into the end of 2023. This is coming as a surprise. but last week oil did start to creep up. This could be a gamechanger since energy prices affect the US consumer. Should gasoline prices move higher, that is a direct tax to the US consumer. I would...

1. The PCE Price Index rose 0.3% in February following a 0.6% increase in January. Expectations were 0.4%, so this was a little softer. Investors are now thinking the Fed may start to get more dovish. The core-PCE Price Index, which excludes food and energy, is the Fed's preferred inflation gauge. The markets have rallied this week and are holding up again this morning. 2. According to Bloomberg,...

1.The markets are in rally mode today. The move higher is being led by tech, but it is really broad based as most every industry group is higher. Lately, I have been watching the Regional Bank ETF (KRE) for guidance and that is acting well so far today. After all, the financial stocks are the most important sector to follow since we have a banking crisis on our hands right now. 2. Another very imp...

1. News that First Citizens Banc Shares (FCNCA) will acquire all deposits and loans of Silicon Valley Bank (SIVB) is giving the markets a bump higher this morning. The markets are also rejoicing that there was no real negative news over the weekend. Just about all of the regional banks are trading up on this news today. 2. Bond yields are up sharply today as well. So while everyone believes that y...

1. It's Fed day! The FOMC (Federal Reserve Open Market Committee) will announce their interest rate policy decision for the US. the market is expecting a 25 bps hike in the fed funds rate. While this is already factored into the market the verbiage will likely be the market mover. The press conference will be very interesting as he will have to address the recent bank failures from SVB Bank and Si...

1. The financial stocks are rebounding today after UBS buys Credit Suisse. This comes after the Swiss National Bank bailed out Credit Suisse last Friday. The Federal Reserve announced a coordinated central bank action with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank to enhance provision of U.S. dollar liquidity. This Wednesday,...

1. It's still all about the banks. Yesterday, we got news that a special discount window was opened to the banks to provide liquidity. Then, First Republic Bank (FRC) confirmed that it will receive a $30 billion injection to help cover deposits. This money was given to them by several large banks like JP Morgan, Bank of America and others. First Republic also announced it will suspend its dividend...

1. This has been one heck of a volatile trading week so far. Three major bank failures have taken place in the last 7-days in the US and now it could be spreading to Europe. Credit Suisse (CS) is making the headlines today. It looks as if their largest shareholder, Saudi National Bank, said it can't provide further financial help. The CS chart has been a horrible performer. and it is trading at al...

Banking crisis is in full swing. Rates coming down, but yield curve is inverted. Banks were caught flatfooted as the Fed. No one wanted SVP or Signature. Money is going to tighten up. Will the Fed cut rates next week? Is QT coming to an end? Unknowns equal selling pressure. Gold took off today after good days on Thursday and Friday. Silver is up 6%. Fear is in full swing. https://inthemoneystocks....

1. All eyes will be on Fed Chairman Jay Powell as he gives his second day of testimony on Capitol Hill. Yesterday, his opening remarks sent the stock market plunging throughout the session. He stated that rates will go higher for longer and that was all the market needed to hear to begin a sharp sell-off. I'm not sure how the market will react today, but yesterday was ugly. The 2-year note yield e...

1. Markets are continuing to rally again to start the week. This rally began last Thursday and today it's been sharp to the upside being led by tech. $AAPL is trading higher by 2.46% after being upgraded by Goldman Sachs today. Last week the tech giant was upgraded by Morgan Stanley and this was one of the main catalysts for a market pop. 2. Energy is declining today across the board. Natural gas...

1. Markets are rallying higher today. Yesterday, the markets surged after the Atlanta Fed president Rafael Bostic said he favors a 25 basis point hike in March. So the markets live to fight another day, but I'm still looking for more choppiness ahead. Today, we have 4 fed heads speaking throughout the day and this may be what is keeping the markets higher right now. 2. Energy is strong today again...

1. The major stock indexes are battling to get into positive territory. Since the start of the week the major indexes have been on the weaker side. The big box retailers are a little soft today. I'm seeing weakness in Lowes (LOW), Home Depot (HD), Target (TGT), WalMart (WMT) and Costco (COST). That is worth noting. 2. Energy stocks are higher today despite oil being flat on the day. This industry...

1. Markets are catching a bid today to start the week. It looks as if it is taking its cue from a move down in interest rates and a slightly weaker dollar. Bothing the yield chart and the dollar are short term overbought and due for a breather. Going into today the major indexes were a bit oversold too. 2. Natural gas is up again today trading higher by 5%. Nat gas has certainly had a powerful mov...

1. Markets are under some major pressure after the core-PCE Price Index came in hotter than expected. Many investors believe this index is the Federal Reserve Bank's favorite indicator. Well, that tells us they need to raise rates further and that is the last thing the bulls want to hear. Most traders are now going to be watching to see if the S&P 500 Index closes below the 50-day moving avera...

1. Markets were slammed yesterday in a broad based decline. Traders sold the markets sharply after a long 3-day weekend. This is a bit unusual to see as often there is a holiday hangover. Traders and investors should be a bit cautious here as the recent rally is showing some signs of fatigue. Today, the major stock indexes are trying to bounce at the start of the session. Either way, it has a lot...

1. The highly anticipated CPI report was released yesterday. The market seemed to struggle on how to interpret it. It was a whipsaw Tuesday so to speak, but by the closing bell the markets were flat. Hence the old saying, it's not how they open but how they close. So far, the trend re,mains up and stocks are battling this week to continue climbing. Either way, this is an options expiration week an...

1. This coming Friday is option expiration for February. By now, everyone knows this is a week of institutional game playing. The large institutions calculate where the small retail options trader has placed his bet and they will usually take stocks and move it away from that popular strike price this week. 2. Tomorrow the CPI report will be released at 8:30am. This report has been a market mover...

1. Markets are all over the map today, Google (GOOG) is trading lower by 6.4% and that looks to be weighing on technology this morning. It looks as if Alphabet AI bot gave a wrong answer at the launch event according to the Telegraph UK. This AI craze is really dangerous if you ask me. Just think about if they report something false and people act on it. It already happens in the stock market with...

1. Markets are pulling back today. The decline comes after this Friday's job report was released. The number was very hot with 517K new jobs announced. This hot number has investors thinking that the Fed needs to continue raising rates. In fact, yields have jumped higher on Friday and again are higher today. Obviously, the markets was pricing in a dowvish fed and that could be off the table now. 2...

1. This is a huge day for markets. It's Fed day. At 2pm ET the FOMC will make its interest rate policy decision for the US. The central bank is expected to raise rates by 25 basis points. As always, that is baked into the cake already, but the verbiage could move markets. Not only will rates be affected, but gold, silver and the dollar could also be volatile or in play after the announcement. Fed...

1. The major stock indexes are treading water today. Energy is weak, both oil and gas are trading lower to start the week. The integrated energy stocks such as Exxon (XOM), Conoco (COP) and Chevron (CVX) are having a rough start, but the session is still very early. 2. All eyes will be on the Fed this week. The Federal Open Market Committee (FOMC) begins a 2-day meeting tomorrow. On Wednesday afte...

1. Stocks are holding up this week. The major indexes have shrugged off the weak earnings and that is a bullish sign. Economic data does not seem to have any negative effects at this time either. So far the January effect is in full force. 2. Tesla is leading the tech heavy NASDAQ with another 3.0% gain. this stock is now trading at $165.00 a share. Last night, earnings from Intel (INTC) and KLA C...