Notes from the markets

05/11/23
  • Stock market wanders after slightly cool inflation report
  • First down day for oil since last Thursday
  • PLTR extends bounce on high net positive options delta

It initially looked like stocks could get a sizable mid-week bump in the wake of Wednesday’s Consumer Price Index (CPI) report, which showed inflation was steady to slightly lower last month. The S&P 500 (SPX) rallied as much as 0.9% soon after the opening bell, although it later drifted into negative territory—and spent a good portion of the day hovering around breakeven—before ending the day with a 0.45% gain.

Bond prices jumped and yields retreated after the report. After closing at 3.52% on Tuesday, the 10-year T-note yield fell as low as 3.43% on Wednesday.

LiveAction hits: After rallying more than 23% on Tuesday, Palantir (PLTR) climbed an additional 7.8% to $10.30 in early trading on Wednesday—just one cent off its highest level since last August. The stock, which later gave up most of its intraday gain, appeared on multiple LiveAction scans, including largest net positive deltas:

Chart 1: LiveAction scan: Largest positive net deltas, 5/10/23. Unusual put volume. Highest net options delta.

Source: Power E*TRADE. (For illustrative purposes. Not a recommendation.)


Market Mover Update: June WTI crude oil futures (CLM3) dipped Wednesday—their first down day since last Thursday’s upside reversal. Tyson (TSN) extended this week’s correction to more than -20%.

Have the majority of the oil market’s bullish catalysts for this year already run their course? Morgan Stanley & Co. analysts think the supply-demand picture may not be as tight in the second half as previously thought.1

Today’s numbers include (all times ET): Weekly jobless claims (8:30 a.m.), Producer Price Index, PPI (8:30 a.m.).

Today’s earnings include: Autohome (ATHM), Tapestry (TPR), US Foods (USFD), Yeti (YETI), Amylyx Pharmaceuticals (AMLX).

 

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1 MorganStanley.com. A Change in the Global Oil Market. 5/9/23.

What to read next...

05/10/23
Options traders appeared to open large positions in calls expiring this week.

05/09/23
As traders prepared for key inflation data, the stock market got off to a cautious start to the week.

05/08/23
Market retreats from resistance at year-to-date highs, rebounds on Friday.

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