Stock market indexes strengthened at midday Wednesday despite another elevated reading on inflation. Earnings reports started to come in for Q1 earnings season.
The S&P 500 climbed 0.6% and the Dow Jones Industrial Average 0.4%. The Nasdaq composite jumped 1.5%. And the small-cap Russell 2000 led with a 1.7% increase.
Volume fell on the Nasdaq and NYSE compared with the same time on Tuesday. Advancers led declining stocks by about a 5-to-2 ratio on the two exchanges.
This week starts first-quarter earnings season, with several major financial firms among the bigger names announcing results.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34247.45 | +27.09 | +0.08 |
| S&P 500 | (0S&P5) | 4400.09 | +2.64 | +0.06 |
| Nasdaq | (0NDQC ) | 13449.27 | +77.70 | +0.58 |
| Russell 2000 | 198.41 | +1.25 | +0.63 | |
| IBD 50 | 36.55 | +0.46 | +1.27 | |
Last Update: 10:18 AM ET 4/13/2022 |
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Stock Market Weighs Earnings Reports
JPMorgan Chase fell more than 2%, nearing this year's lows, after the bank reported a drop in first-quarter earnings. EPS fell to $2.63 a share, below views for $2.72 a share. Revenue came in at $31.59 billion, above the consensus estimate of $30.6 billion.
BlackRock, the giant investment management firm whose products include the iShare family of ETFs, came out better. Adjusted Q1 earnings climbed 23% and beat analysts' estimates. Revenue rose 7% to nearly $4.7 billion. The stock was flat and remains well off prior highs.
Airlines gained altitude after Delta Air Lines beat analyst expectations this morning. Delta, the first of the carriers to announce Q1 results, posted a loss of $1.23 a share vs. a year-ago loss of $3.55 a share. Revenue surged 125% to $9.35 billion as higher fares helped offset higher fuel costs.
Delta shares gapped above the 200-day moving average, up 4% in heavy trading. U.S. Global Jets ETF gapped up to a gain of nearly 5%, reclaiming the 50-day moving average. IBD's airlines industry group rose 5%, the best gain of 197 groups. American Airlines jumped 10% in a bid to reclaim the 200-day line. It's on pace for the best day since Nov. 9, 2020, according to Dow Jones Market Data.
In retail, Bed Bath & Beyond plunged 12% but pared its loss to less than 1% at midday. The home goods chain surprised Wall Street with a February-quarter loss of 92 cents a share. Analysts expected a profit of 3 cents a share. Sales slid 22% to $2.05 billion, also below estimates. Same-store sales tumbled 12% on supply chain and inventory issues.
Stock Market Hit With New Inflation Data
The producer price index climbed more than expected in March, just the latest data to show elevated prices. Wholesale prices rose 1.4% in March, picking up the pace from the 0.9% increase the previous month. On a year-ago basis, the PPI rose 11.2% after a 10.3% increase in February.
Excluding food and energy items, wholesale inflation rose 1% in March, well above economists' forecasts for a 0.5% increase. Compared to March 2021, PPI excluding food and energy also was above views, up 9.2%, the Bureau of Labor Statistics said.
March's headline inflation number was the highest since the current calculation method started in 2009, said BMO Capital Markets economist Jennifer Lee.
"Despite the sigh of relief from yesterday's core CPI reading (it 'only' rose 0.3% in the month, or 'only' 6.5% y/y), this is concerning," she noted.
The new data does nothing to sway the Fed from an aggressive tightening strategy. Yet, the yield on the 10-year Treasury note eased 3 basis points to 2.7%.
IBD 50 Rises On Energy, Food Stocks
The Innovator IBD 50 ETF rose 0.4% as energy, fertilizer and food-related stocks rose more than 1%. Comstock Resources and Andersons climbed to new highs. But CF Industries reversed lower from a new high and was off 2.8%.
W.W. Grainger rose about 1% and is trying to stay above the 527.16 buy point of a flat base. The relative strength line is at new highs, although breakout volume is weak so far.
The construction products company appeared to be rising in sympathy with Fastenal, which beat profit estimates today as higher pricing helped overcome rising costs. Fastenal stock climbed back above the 58.39 buy point of a cup-with-handle base.
Packaging Corp. of America hit a new high and is rising past an alternate buy point at 158.57, but volume is about half its average.
