Markets

Midday Update: Wall Street Shrugs off Inflationary Pressures as 10-Yr Yield Backs off 3.0%

Wall Street's major market averages continue to gain ground and are higher for a fifth consecutive day as investors dismissed signs of inflationary pressures and soft factory output data, instead, focusing on the 10-year Treasury note yield, which backed away from the 3.0% trigger. Although the uptrade in the Dow is being curbed by technical resistance at the 50-day moving average, the blue chip index is up by more than 100 points, led by gains in component stocks Apple ( AAPL ) and Cisco ( CSCO ).

A flurry of economic data before the open included an above-consensus gain in the January producer price index, slight gain in initial jobless claims and mixed manufacturing data from the NY and Philadelphia Fed.

Industrial production was down 0.1% in January, below expectations for an increase of 0.3%. Additionally, December's healthy 0.9% gain was more than cut in half, and capacity utilization slowed for the first time in five months. Wall Street reacted negatively to the data and surrendered early gains before bargain-hunters reappeared at the lows.

European markets held modest gains. France's CAC-40 rallied more than 1% on outsized gains for Airbus. The aircraft maker reported better-than-expected profits for 2017, sending shares near their record highs.

Crude oil was down $0.34 to $60.26 per barrel. Natural gas was down $0.03 to $2.56 per 1 million BTU. Gold was down $3.90 to $1,354.20 an ounce, while silver was down $0.18 to $16.70 an ounce. Copper was up $0.003 to $3.23 per pound.

Among energy ETFs, the United States Oil Fund was down 0.74% to $12.09 with the United States Natural Gas Fund was down 1.41% to $21.68. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 0.33% to 22.84 while SPDR Gold Shares was down 0.05% to $128.16. The iShares Silver Trust was down 0.75% to $15.79.

Here's where the markets stand at mid-day:

US MARKETS

NYSE Composite Index was up 12.30 points (+0.09%) to 12,759.02

Dow Jones Industrial Index was up 70.20 points (+0.28%) to 24,963.69

S&P 500 was up 9.79 points (+0.38%) to 2,708.93

Nasdaq Composite Index was up 45.66 points (+0.64%) to 7,189.22

GLOBAL SENTIMENT

FTSE 100 was up 20.84 points (+0.29%) to 7,234.81

DAX was up 7.01 points (+0.06%) to 12,346.17

CAC 40 was up 57.26 points (+1.11%) to 5,222.52

Nikkei 225 was up 310.81 points (+1.47%) to 21,464.98

Hang Seng Index was up 599.83 points (+1.97%) to 31,115.43

Shanghai China Composite Index was closed

NYSE SECTOR INDICES

NYSE Energy Sector Index was down 118.56 points (-1.09%) to 10,780.58

NYSE Financial Sector Index was up 10.29 points (+0.12%) to 8,302.95

NYSE Healthcare Sector Index was up 31.57 points (+0.22%) to 14,385.28

UPSIDE MOVERS

(+) MBRX (+64.28%) Reports "major breakthrough" in cancer research with discovery of tumor-defeating molecule

(+) AMAG (+30.75%) FDA approves Makena injection

(+) SYNT (+14.33%) Q4 results beat analyst's expectations

DOWNSIDE MOVERS

(-) INPX (-23.98%) Launches public offering of common stock

(-) CDMO (-26.35%) Priced 9 million share offering at 31% discount

(-) THS (-13.81%) Issued disappointing full-year revenue guidance

(-) NTAP (-10.65%) Swung to a loss in Q3 on one-time tax charge

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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