S&P 500 outlook after the CPI data on Thursday

January 11, 2024 05:57 AM PST | By Invezz

S&P 500 outlook after the CPI data on Thursday — Image source: Invezz

S&P 500 to find resistance at the 4,800 level

Versus a year ago, consumer prices in the United States were up 3.4% last month – well above the Dow Jones estimate at 3.2%.

The data could make it harder for the benchmark index to break to the upside, as per Jason Hunter – the head of technical strategy at JPMorgan. On CNBC’s “Closing Bell”, he said a day earlier:

There’s channel resistance, Fibonacci swing objectives … all clustered around the 4,800 area. We suspect that’s going to continue to be a sticking for the S&P 500 over the near term.

CPI

Quick analysis: This report changes nothing.

98% of core CPI increase came from services
69% of that came from shelter

Shelter starts biting hard this spring. pic.twitter.com/w7IH0bfbE2
— Warren Pies (@WarrenPies) January 11, 2024

For the month, consumer prices came in up 0.3% on Thursday versus a 0.2% increase expected.

Jobs report last week was also red hot

Excluding food and energy, the so-called core consumer price index (CPI) printed up 3.9% for the year – also hotter than the economists’ forecast for a 3.8% increase.

The core reading was, however, in line with estimates for the month. Still, Jason Hunter of JPM remains cautious as there tends to be a “period of consolidation” even in a bull market.

Last week, the U.S. Bureau of Labour Statistics said non-farm payrolls increased way more than expected in December ass Invezz reported here.

But Josh Brown – chief executive of Ritholtz Wealth Management is convinced the Nasdaq Composite is not overbought and the momentum in that index could continue in the coming weeks.

Watch here: https://www.youtube.com/embed/uKGfmlORBw8?feature=oembed

The post S&P 500 outlook after the CPI data on Thursday appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.