Stocks trading marginally higher as markets digest the implications of CPI data

The major US stock indices are trading marginally higher/mixed. The Dow industrial average is trading above and below unchanged. The S&P and NASDAQ index are coming off early at session highs. A snapshot of the market eight minutes into the open is currently showing.

• Dow Industrial Average -16.96 points or -0.04% at 38752.71
• S&P index up 7.34 points or 0.14% at 5125.27
• NASDAQ index of 35.15 points or 0.22% at 16054.43..

The small-cap Russell 2000 is lower by -10.22 points or -0.49% at 2055.49.

Looking at the US debt market, yields are now moving higher. The US treasury will auction off 10 year notes at 1 PM ET today:

• 2-year yield 4.586%, per spy .2 basis points
• 5-year yield 4.146%, +5.8 basis points
• 10-year yield 4.156%, +5.3 basis points
• 30-year yield 4.320%, +4.3 basis points

Looking at other markets:

• Crude oil is trading down $-0.20 or -0.23% at $77.75.
• Gold is trading down $-22.87 or -1.06% at $2159 as it reacts to higher yields and the higher dollar
• Bitcoin is trading below $72,000 at $71,861

After up-and-down volatility, the US dollar is moving to the upside more recently.

• The price of the EURUSD is testing the low shortly after the release of the CPI at the 1.0900 level. A move below that level would have traders open toward the swing high from February 22 at 1.0887.
• The GBPUSD is now trading below the 1.2788 – 1.2800 high area that confined the topside of the 1.2594 to 1.2800 up and down area before breaking higher last week. The current price is trading at 1.2751as more buyers are turning to sellers below the 1.2800 level.
• The USDJPY is trading above and below the 100-day moving average of 147.737. That moving average is the barometer for buyers and sellers now.

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