Stock Market logoStock Market Station

All the stock market news, every minute updated!

16 June 2021
10:26 hour

S&P 500 futures turn negative after inflation rises more than expected

Investing.com

10/06/2021 - 15:02


READ THE FULL ARTICLE ON INVESTING.COM

Related headlines:

  1. Metals Stocks: Gold prices rise as U.S. inflation reported higher-than-expected (13/04/2021 - Market Watch)
    Gold futures on Tuesday turn higher after data showed U.S. consumer prices in March rose for the fourth month in a row and the pace of inflation hit the highest level in 2½ years. Bullion is often viewed as a hedge against inflation.
    [visit article]
  2. Metals Stocks: Gold prices rise as U.S. inflation reported higher-than-expected (13/04/2021 - Market Watch)
    Gold futures on Tuesday turn higher after data showed U.S. consumer prices in March rose for the fourth month in a row and the pace of inflation hit the highest level in 2½ years. Bullion is often viewed as a hedge against inflation.
    [visit article]
  3. Stocks turn negative on Powell's inflation comments; yields off to the races (04/03/2021 - Seeking Alpha)

    [visit article]
  4. Market Snapshot: Stock futures crawl higher after S&P 500 scores record close (11/06/2021 - Market Watch)
    Stock-index futures edge higher Friday, looking to end the week on a positive note after the S&P 500 logged a record close in the wake of another round of hotter-than-expected inflation data.
    [visit article]
  5. Market Snapshot: Stock futures mostly lower after inflation-triggered rout (13/05/2021 - Market Watch)
    Stock-index futures point to a mixed start for U.S. equities Thursday, a day after hot inflation data sent the Dow Jones Industrial Average to its biggest one-day loss since January.
    [visit article]
  6. Market Snapshot: Stock futures struggle for direction ahead of inflation data (09/06/2021 - Market Watch)
    U.S. stock-index futures point to a flat to slightly higher start for Wall Street Wednesday as investors continue to await inflation data.
    [visit article]
  7. Market Snapshot: Stock futures struggle for direction ahead of inflation data (09/06/2021 - Market Watch)
    U.S. stock-index futures point to a flat to slightly higher start for Wall Street Wednesday as investors continue to await inflation data.
    [visit article]
  8. Market Snapshot: Stock futures point lower ahead of inflation data (12/05/2021 - Market Watch)
    Stock-index futures point to further losses for equities Wednesday as investors await a key reading on inflation a day after the Dow Jones Industrial Average suffered its biggest one-day fall since late February.
    [visit article]
  9. Futures Movers: U.S. oil rises 1.5%, extends climb to 19-month high after OPEC+ decision (05/03/2021 - Market Watch)
    Oil futures on Friday add to their gains, a day after the Organization of the Petroleum Exporting Countries and its allies, in a surprise move, said they would rollover current production cuts to the end of April.
    [visit article]
  10. Futures Movers: U.S. oil rises 1.5%, extends climb to 19-month high after OPEC+ decision (05/03/2021 - Market Watch)
    Oil futures on Friday add to their gains, a day after the Organization of the Petroleum Exporting Countries and its allies, in a surprise move, said they would rollover current production cuts to the end of April.
    [visit article]
  11. Futures Movers: Oil rises toward $70 a barrel on ‘reopening euphoria’ (05/05/2021 - Market Watch)
    Oil rises for a third straight day Wednesday, with Brent crude, the global benchmark, trading near the $70-a-barrel threshold on expectations for higher demand as the European and U.S. economies reopen
    [visit article]
  12. Market Snapshot: Dow futures edge higher as investors await inflation data (10/03/2021 - Market Watch)
    Stock-index futures trade mixed Wednesday as investors keep an eye on bond yields and await inflation data that might show whether consumer prices are beginning to rise.
    [visit article]
  13. Metals Stocks: Gold prices tumble 2% as 10-year Treasury surges above 1.75% and dollar rises (30/03/2021 - Market Watch)
    Gold futures are hit Tuesday by rising bond yields and a rising U.S. dollar as coronavirus vaccine rollouts lift expectations for higher inflation as economies recover, particularly in the U.S.
    [visit article]
  14. Help Me Understand CME Futures And Inflation (17/05/2021 - Reddit Stocks)
    So right now, the mainstream narrative is that inflation is going to run red hot mostly due to a rally in commodity prices. This inflation has the potential to be more than transitory, meaning it lasts more than a couple of quarters at most and will result in forcing the FED to raise rates and crash growth stocks. This is why apparently, tech stocks are underperforming while value, or more specifically, manufacturing and mining companies outperform (look at XME for example). My question is if that is the case, then why are steel futures for U.S. Midwest Domestic Hot-Rolled Coil Steel going down CME Link? Right now they peak in June at $1,520 a tonne before steadily going down for the foreseeable future. Similar things can be said about other commodities such as copper, which remains relatively steady before gradually going down going into next year Copper Link. On the agriculture side, major commodities like corn appear to be peaking in the near future as well Corn Futures. So taking all of this into account, it would appear that the shape of the futures curves would indicate that commodity prices would peak in near future before gradually going down as supply meets demand. Shouldn't this mean that inflation is indeed transitory as the FED predicts? What am I missing here?   submitted by   /u/GushingGranny1 [link]   [comments]
    [visit article]
  15. Market Snapshot: Stock futures edge higher as inflation worries appear in check (26/05/2021 - Market Watch)
    Stock-index futures edge higher Wednesday, continuing to trade near all-time highs as remarks by Federal Reserve officials appear to calm investor worries about building inflation pressures.
    [visit article]
  16. Market Snapshot: Stock futures pause as investors await inflation data (10/06/2021 - Market Watch)
    Stock-index futures trade mixed Thursday as investors await May data on consumer price inflation.
    [visit article]
  17. Market Snapshot: Stock futures struggle for direction as investors wait for inflation data later this week (08/06/2021 - Market Watch)
    Stock-index futures struggled for direction Tuesday, with investors appearing to be in waiting mode ahead of another round of inflation data later in the week.
    [visit article]
  18. Futures Movers: U.S. stock futures shoot higher after strong jobs report (05/04/2021 - Market Watch)
    Dow Jones Industrial Average futures YM00 were up around 150 points Sunday evening, or 0.5%, while S&P 500 futures ES00 and Nasdaq-100 futures NQ00 also showed gains.
    [visit article]
  19. Quick discussion around US Inflation (14/06/2021 - Reddit Stocks)
    Alright, let's talk a bit more about US inflation. https://finance.yahoo.com/news/strategists-still-dont-think-inflation-is-a-problem-for-stocks-morning-brief-100322032.html So, they keep talking about the 10-year US bond yield as a signal that the market has "shrugged off" inflation concerns. Has it though? It has gone down, yes. But maybe, just maybe, it is because the Fed is doing everything they can to keep bond yields low? Up until last month, the Fed expectation was that rates would be hiked up in late 2021-mid-2022. Now, the expectation is 2023. Remember, low interest rates tend to lead to high inflation (low interest makes savings and bonds worthless). Also, actual inflation continues to beat Fed expectations every month. For April, the Fed expected 3.6%. They got 4.2%. For May, they expected 4.7%. They got 5%! They keep revising their expectations up and up and up. If inflation was a stock, I would buy it! So, when was the last time it was this high? June to September of 2009. 12 years ago. Inflation also steadily increased then, it did not spike. Before that? May 1991 which followed a year of sustained inflation over 5%. 30 years ago. I know that the Fed keeps saying that we've had weird circumstances, but it's not like we've had negative inflation at any point since March 2020 so... what are you on about, Fed? Granted, we've only had 1 month of 5% inflation. For now. However, we also have: $120bln that the Fed is pumping into the economy every month. the $500bln in its reverse repo (money that's been essentially been taken OUT of circulation). almost 0% interest rates, which will not be lifted until 2023 (current expectation). commodity prices rising across the board due to shortages. rising labour costs and record job vacancies because people make more money staying at home than working. an increasing government spending. the housing markets across the world at an all-time high. Should I keep going? Hope that gives you a good idea where we stand right now with inflation! I really want to hear your opinion on this :)   submitted by   /u/y_angelov [link]   [comments]
    [visit article]
  20. Quick talk about US Inflation: (14/06/2021 - Reddit Stock Market)
    Alright, let's talk a bit more about US inflation. https://finance.yahoo.com/news/strategists-still-dont-think-inflation-is-a-problem-for-stocks-morning-brief-100322032.html So, they keep talking about the 10-year US bond yield as a signal that the market has "shrugged off" inflation concerns. Has it though? It has gone down, yes. But maybe, just maybe, it is because the Fed is doing everything they can to keep bond yields low? Up until last month, the Fed expectation was that rates would be hiked up in late 2021-mid-2022. Now, the expectation is 2023. Remember, low interest rates tend to lead to high inflation (low interest makes savings and bonds worthless). Also, actual inflation continues to beat Fed expectations every month. For April, the Fed expected 3.6%. They got 4.2%. For May, they expected 4.7%. They got 5%! They keep revising their expectations up and up and up. If inflation was a stock, I would buy it! So, when was the last time it was this high? June to September of 2009. 12 years ago. Inflation also steadily increased then, it did not spike. Before that? May 1991 which followed a year of sustained inflation over 5%. 30 years ago. I know that the Fed keeps saying that we've had weird circumstances, but it's not like we've had negative inflation at any point since March 2020 so... what are you on about, Fed? Granted, we've only had 1 month of 5% inflation. For now. However, we also have: $120bln that the Fed is pumping into the economy every month. the $500bln in its reverse repo (money that's been essentially been taken OUT of circulation). almost 0% interest rates, which will not be lifted until 2023 (current expectation). commodity prices rising across the board due to shortages. rising labour costs and record job vacancies because people make more money staying at home than working. an increasing government spending. the housing markets across the world at an all-time high. Should I keep going? Hope that gives you a good idea where we stand right now with inflation! I really want to hear your opinion on this :)   submitted by   /u/y_angelov [link]   [comments]
    [visit article]
  21. Dow Futures 105 Pts Higher; Oil Rises on Colonial Pipeline Attack (10/05/2021 - Investing.com)

    [visit article]
  22. WPI inflation rises to 4.17 pc in Feb on costlier food, fuel (15/03/2021 - Financial Express)
    The RBI in its monetary policy last month kept interest rates unchanged for the fourth consecutive meeting and said that the near-term inflation outlook has turned favourable.
    [visit article]
  23. Commodities Corner: Oil prices went negative a year ago: Here’s what traders have learned since (19/04/2021 - Market Watch)
    It’s been a year since the U.S. benchmark West Texas Intermediate crude futures settled at a negative price for the first time, and while prices have recovered to trade above pre-COVID-19 levels, the unprecedented drop will not be soon forgotten.
    [visit article]
  24. Commodities Corner: Oil prices went negative a year ago: Here’s what traders have learned since (19/04/2021 - Market Watch)
    It’s been a year since the U.S. benchmark West Texas Intermediate crude futures settled at a negative price for the first time, and while prices have recovered to trade above pre-COVID-19 levels, the unprecedented drop will not be soon forgotten.
    [visit article]
  25. Futures Movers: U.S. oil benchmark falls from 22-month high as dollar rises (26/02/2021 - Market Watch)
    Oil futures trade significantly lower, with the U.S. benchmark pulling back from a 22-month high, as a stronger dollar and jitters ahead of next week's OPEC+ meeting inspire a round of apparent profit-taking.
    [visit article]
  26. The Fed: Fed officials split on outlook for inflation (07/04/2021 - Market Watch)
    Fed officials seems divided almost evenly about the outlook for inflation -- with one camp worried inflation might be higher than expected, while another saw factors that have held down inflation in recent years would remain powerful, according to minutes of the March meeting released Wednesday.
    [visit article]
  27. Futures Movers: Oil falls as Suez Canal reopens, focus shifts to OPEC+ (30/03/2021 - Market Watch)
    Oil futures lose ground Tuesday, feeling pressure after ships resumed moving through the Suez Canal and traders turn their attention to a meeting of the Organization of the Petroleum Exporting Countries and its allies.
    [visit article]
  28. Nasdaq futures jump 1%, Dow negative after weak jobs data (07/05/2021 - Investing.com)

    [visit article]
  29. Europe Markets: European stocks and U.S. equity futures in holding pattern, as investors wait for ECB and U.S. inflation (09/06/2021 - Market Watch)
    Investors are unwilling to budge ahead of Thursday's U.S. consumer-price inflation data.
    [visit article]
  30. The Fed: What would cause the Fed to take a U-turn? Hint: a lot more than some high inflation readings (16/03/2021 - Market Watch)
    What would it take for the Fed to reverse course and pull back from its easy policy stance? The answer: If Americans start to believe higher inflation is here to stay and spend like there was no tomorrow.
    [visit article]
  31. Europe Markets: European stocks rebound from worst day in 2021, as U.S. futures remain negative (12/05/2021 - Market Watch)
    Stocks in Europe inched higher on Wednesday, rebounding slightly from the worst trading day of 2021 as U.S. stock market futures remain set to open lower.
    [visit article]
  32. Market Snapshot: Stock futures point lower, with tech selloff set to continue (11/05/2021 - Market Watch)
    Stock-index futures point to further losses for equities, with inflation worries seen keeping pressure on previously highflying tech stocks.
    [visit article]
  33. Market Snapshot: Stock futures point lower, with tech selloff set to continue (11/05/2021 - Market Watch)
    Stock-index futures point to further losses for equities, with inflation worries seen keeping pressure on previously highflying tech stocks.
    [visit article]
  34. NewsWatch: What would cause the Fed to take a U-turn? Hint: a lot more than some high inflation readings (17/03/2021 - Market Watch)
    What would it take for the Fed to reverse course and pull back from its easy policy stance? The answer: If Americans start to believe higher inflation is here to stay and spend like there was no tomorrow.
    [visit article]
  35. Option Greeks Explained for beginners (16/05/2021 - Reddit Stock Market)
    Hey all, I’m continuing on a series where I breakdown and simplify option concepts while trying to be as concise yet comprehensive as possible. Today I’ll be breaking down the Greeks and how they relate to an options price The Greeks simply represent the expected change in an options price based on factors which include price movements of an underlying relative to an options expiration date, time decay, and changes in implied volatility. Let’s dive into each of the individual Greeks below Delta Delta is the expected change in an options price for a $1 move up or down in the underlying security. Do note that Call and Put options have different delta natures. Call options have positive deltas (+) . Option positions that have positive deltas will increase by its delta for a $1 increase in the underlying and decrease by its delta for a $1 decrease in the underlying. If a call option that has a delta of +0.40 is trading at $2.50/$250, a $1 increase in the underlying will cause the call option to be expected to go up by the delta of 0.40 to $2.90/$290. If the underlying had instead dropped by $1, the call option will be expected to go down by 0.40 to $2.10/$210 Put Options have negative deltas (-). Option positions that have negative deltas will increase by its delta for a $1 decrease in the underlying and decrease by its delta for a $1 increase in the underlying. If a put option that has a delta of -0.25 is trading at 1.50, a $1 increase in the underlying will cause the put option to be expected to drop to 1.25/$125. If the underlying had instead dropped by $1, the put option will be expected to go up by $0.25 to 1.75/$175. By using simple math, you can see why this is so. As a put option has a negative delta nature, When the stock drops $1, the negative delta is subtracted from the options’s price. If you take $1.50 -(-0.25) this comes out to $1.75 due to the fact that when you subtract a negative number, the result is a positive number being added. If the stock increases, then the negative delta of a put is added to the options price. 1.50+ (-0.25) which results in a subtraction and comes out to $1.25 Gamma Gamma is the rate of change of an options delta for a $1 change in the underlying. Yes, Delta is dynamic and is constantly changing. After a $1 change, not only does an options price change but so does an option’s delta. This change of an options delta is caused by gamma. For call options, gamma is added to a call options positive delta for every dollar increase in the underlying. Conversely, gamma is subtracted from a call options positive delta for a $1 dollar decrease in the underlying. For put options, the opposite is true. Gamma is added to a put options negative delta for a 1 dollar increase in the underlying, and subtracted from a put options negative delta for a 1 dollar decrease in the underlying. In other words, a put options delta becomes more and more negative as the underlying decreases and less negative as the underlying increases. Take this into account with the following statement: Gamma is the highest ATM and the closest to expiration. To fully demonstrate how gamma works lets take a look below. SPY is trading at $385. A Feb 19 2021 SPY 380 Put costs $3.20 and has a current delta position of -0.30. For a 1 dollar move down, the put increases by the -30 delta (3.20-(-0.30) =3.50) now the new delta is -0.32. this means to say that for the next dollar decrease of the underlying, the put option’s premium will increase by $0.32. This indicates that gamma is 0.02. When the stock drops again, the put option increases by $0.32 to 3.75 and its new delta is -0.35. This time, this indicates that gamma was 0.03 as the puts positional delta changed from -0.32 to -0.35. As you can see, gamma appears to be increasing from 0.02 to 0.03 as gamma increases as an option gets closer to being ATM. In this case as the stock drops, the stock is closer and closer towards the puts strike price. Nature: Gamma is highest ATM and the closer an option is to expiration Theta Theta represents the amount of extrinsic value that will be reduced from an option’s premium for 1 passing day. Perhaps the more popular Greek in the world of options, theta is an option buyers kryptonite. As options are time decaying assets, theta reflects the expected decrease of an options extrinsic value for each passing day for the reason that an option will have lesser and lesser time to make a significant move (such as for an OTM option to move ITM by expiration) and (an ITM option to continue moving deeper ITM by expiration). The general rule of thumb is that options have accelerating theta as expiration approaches. This means that the extrinsic value decrease of an option for each passing day increases all else being equal. Therefore in general, options experience a rapid decrease in their premiums in the final days of expiration. A call option trading at 0.80/$80 that has a theta value of 0.10 is expected to decrease by $0.10 to $0.70/$70 for that one passing day, all else being equal. Subsequently theta increases for the next passing day. Nature: Theta is highest ATM and the closer an option is to expiration (for ATM options) Vega Vega represents the expected change in an options price for a 1% change in implied volatility (IV) . Implied volatility is the volatility value in an options extrinsic value. (If you missed the previous topic on implied volatility, click here.) As implied volatility rises, so does an options premium. Conversely an option’s premium decreases as implied volatility drops. For example, a put option is trading for $1.50/$150 and has a vega value of 0.10. if implied volatility rises by 1%, the option is expected to increase by 0.10 to $1.60/$160, if implied volatility drops by 1%, the option will be expected to drop by 0.10. Nature: Vega is highest ATM and the further away an option is to expiration. It is important to note that the Greeks are just market estimates and expectations of how an options price will change. Ultimately, the market determines exact prices Join our options discord: https://discord.gg/SK2xtsdxrz   submitted by   /u/OptionsSG [link]   [comments]
    [visit article]
  36. Futures turn lower ahead of jobless claims report (25/03/2021 - Investing.com)

    [visit article]
  37. GameStop shares turn negative, but still up 100%+ for the week (26/02/2021 - Seeking Alpha)

    [visit article]
  38. Metals Stocks: Gold futures skid 1.4% as investors wrestle with inflation outlook (14/06/2021 - Market Watch)
    Gold futures head sharply lower Monday morning, with prices under heavy selling pressure despite lower-bound bond yields and a weaker dollar, ahead of an important meeting of the Federal Reserve.
    [visit article]
  39. Metals Stocks: Gold futures sink 1% as investors watch for inflation, ECB updates (10/06/2021 - Market Watch)
    Gold futures head sharply lower Thursday as investors in precious metals await an the U.S. May CPI data and looked to parse the most recent policy update from the European Central Bank.
    [visit article]
  40. Futures Movers: Oil price rises as Suez Canal developments offset as Russia seen supporting crude output curbs to May (29/03/2021 - Market Watch)
    Crude-oil futures trade higher Monday morning as reports ahead of a key meeting of oil producers overshadow the partial freeing of the world’s largest container vessel, which had blocked the Suez Canal for about a week, producing massive logjams in global trade and putting strains on energy assets.
    [visit article]
  41. Futures Movers: Oil on track for weekly gains as reopening optimism outweighs COVID worries (07/05/2021 - Market Watch)
    Oil futures edge lower Friday but remain on track for weekly gains as optimism over the economic reopening in the U.S. and Europe rises, though concerns remain about the surge in COVID-19 cases in India.
    [visit article]
  42. The Fed: Fed’s Clarida says fourth-quarter inflation data will be key (09/04/2021 - Market Watch)
    Federal Reserve Vice Chairman Richard Clarida said Friday that the inflation readings at the end of the year will be important signs of whether the expected uptick in inflation this year is transitory or long-lasting.
    [visit article]
  43. Europe Markets: European stocks gain, with U.S. equity futures mixed after big day for techs (10/03/2021 - Market Watch)
    European stocks and U.S. equity futures saw mixed trade on Wednesday, a day after technology names rebounded sharply. U.S. inflation data are in focus for later.
    [visit article]
  44. Futures Movers: Oil slips as traders begin to fret over inventories (16/03/2021 - Market Watch)
    Oil futures trade lower Tuesday, with analysts noting that nearby futures on U.S. benchmark crude have slumped below later-dated futures, reflecting concerns over a buildup in inventories after last month's Texas deep freeze.
    [visit article]
  45. Inflation Panic (28/02/2021 - Reddit Stock Market)
    So, what is it with the whole panic about inflation these days? It doesn't seem unlikely to many, that we will hit 5% inflation over the next years. That would mean that Federal Banks increase interest on credits to keep it at 3%. That in turn would kill the economy (but really, would it?!) which in turn devalues the entire stock market. On the other hand, interest on treasury bonds would likely increase. Suppose I have money and stocks and the same amount of free money available for semi-long term investments (think 5-10 years). My portfolio is up 30% overall, with an clean energy etf (that lost almost 50% over the last week of panic, still up 80% from where I bought), an s&p 500 tracker etf and an digital entertainment etf. Where do I go from here? The etfs were all bought with a 5-10 year range in mind, so just keep them or would it make sense to realize the 30% and do something else with it (if so, what). The free money sits there and waits to be invested, what would be the best course to protect it at least against inflation? (Keep in mind, it's Not enough money to invest in real estate ;-)) Cheers PS: do we have historical context for the stock market and what globalized inflation did to it? Can't think of anything off the top of my head, but it would be interesting. I guess pre WW2 germany would count for something, but that wasnt really globalized. Same for Venezuela and turkey nowadays.   submitted by   /u/Inaih [link]   [comments]
    [visit article]
  46. What are the boldest plays I can make if I think inflation will be over consensus? (05/06/2021 - Reddit Stocks)
    I believe inflation is going to be much larger than the consensus, and I want to have my big short moment. For those of you that don't believe inflation will be an issue, I respect your opinion and understand your points, but I don't want to turn this thread into a debate about how bad inflation will or won't be. Please don't bother arguing with me about inflation. I want people to share with me what are the boldest plays I can make if I think inflation will be way over consensus opinion. A few things I have come up with. TTT - a triple leveraged inverse of the 20 yr US treasury. Burry had a position (no one know if he still does) of a double leveraged similar position. Shorting stocks I think would fall the furthest in the event of a market crash caused by higher interest rates caused by trying to reel in inflation. Tesla comes to mind. So does GME. But shorting meme stocks I think is maybe too dangerous, but it could be lucrative too. What ideas do you have for me?   submitted by   /u/Zestyclose_Ad_1566 [link]   [comments]
    [visit article]
  47. Futures Movers: Oil prices resume rise with U.S. output expected to see slow thaw (22/02/2021 - Market Watch)
    Oil futures trade higher Monday, resuming a push higher as traders looked for a slow recovery in output following winter storms that knocked U.S. producers and refineries offline.
    [visit article]
  48. Market Snapshot: Stock futures point higher as inflation worries fade (25/05/2021 - Market Watch)
    Stock-index futures point to a higher start Tuesday, finding support as Federal Reserve officials soothed worries over a pickup in inflationary pressures.
    [visit article]
  49. Tech selling picks up as stocks turn decidedly negative (02/03/2021 - Seeking Alpha)

    [visit article]

For more information mailto [email protected]. Disclaimer.