Wake Up Wall Street (SPY) (QQQ): US CPI to cap risk on moves

Here is what you need to know on Wednesday, January 11:

Risk markets remain on the front foot with a positive Asian session leading to modest gains again in Europe on Wednesday morning. Some surprise upside data from Australian inflation and retail sales data was brushed off despite more hawkish possibilities. Oil also shrugged off a surprise build in crude inventories, but with US CPI on Thursday moves are limited as position-taking is cut to a minimum. The risk-on rally started with bond yields globally falling, so tomorrow's CPI needs to confirm this. Bond yields fell again yesterday and are down in Germany this morning, which is helping stocks and other risk assets to hold gains. This has kept the US Dollar under pressure as it holds at 103.30 in the Dollar Index. Oil is higher at $76.70, and Gold is flat at $1,880.

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European markets: Eurostoxx and FTSE are trading up +0.7% and Dax +1%.

US futures: Dow, Nasdaq and S&P 500 are all up +0.4%.

Wall Street top news

Airlines (LUV) (DAL) (AAL) (UAL): FAA reports nationwide issue grounding all departures, though now reportedly back on line.

Tesla (TSLA) reportedly set to expand its Texas gigafactory.

Reuters headlines

Apple Inc (AAPL): The company is planning to start using its own custom displays in its mobile devices from 2024 onwards in an attempt to bring more components in-house, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.

BlackRock Inc (BLK): The company's iShares exchange traded funds (ETFs) gained more net flows than Vanguard's ETFs last year, according to estimates from industry tracker Morningstar.

Credit Suisse Group AG (CS): The company is considering a 50% cut to its overall 2022 bonus pool, Bloomberg News reported on Wednesday.

Goldman Sachs Group Inc (GS): Staff at Goldman Sachs are bracing for news on whether they will keep their jobs, as the U.S. investment bank begins a sweeping cost-cutting drive that could see its 49,000-strong global workforce shrink by thousands.

Merck & Co Inc (MRK) : The company said it would take legal action against some pharmaceutical companies after noticing that some manufacturers were supplying COVID-19 drugs to some provinces and cities saying the medicines were authorized by Merck.

Wells Fargo & Co (WFC): The company will slim down its home lending business by reducing its mortgage servicing portfolio and exiting the correspondent lending business, the company said.

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Source: WSJ.com

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