Modest gains for major indices to start the trading day

The US PPI and initial jobless claims were stronger than expectations. Retail sales were weaker but markets are more focused on the higher inflation/stronger job growth. US rates are moving higher with the 2-year now up 5.7 basis points and the 10 year yield up 6.3 basis points.

All that has US stocks modestly higher but off their pre-market high levels.

A snapshot of the market currently shows:

• Dow industrial average up 55.25 points or 0.14% at 39098.58
• S&P index up 7.41 points or 0.14% at 5172.71
• NASDAQ index of 37.72 points or 0.23% at 16215.49

The S&P all-time high closing level reached on Tuesday is at 5176.50. The NASDAQ high closing level is at 16274.94.

Looking at the US debt market, yields are moving higher:

• 2-year yield 4.680% +5.7 basis points
• 5-year yield 4.262% +7.6 basis points
• 10 year yield 4.254% +6.3 basis points
• 30-year yield 4.396% +4.7 basis points

In other markets:

• crude oil is up 90% or 1.14% at $80.64. The high reached $80.77 reaching the highest level back in November 2023.
• Gold is down -$11.12 or -0.51% at $2163.15
• Bitcoin is lower at $71,948

The EURUSD is trading to new session lows and looks toward its 200 hour MA at 1.09089.

The USDJPY traded to a new high in the current hourly bar but still needs to get above the 38.2% of the move down from the Feb high at 148.157.

This article was written by Greg Michalowski at www.forexlive.com.