Day Traders Diary

1/12/22

The major averages rose modestly for Wednesday after a key inflation report showed a historic gain but largely matched expectations. The S&P 500 added 13 points or 0.2% while the Nasdaq Composite rose 34 points or 0.2%. The Dow Jones Industrial Average rose 38 points or 0.2%.

The moves come after the December reading for the consumer price index, a gauge of prices across a broad spectrum of goods, showed a gain of 7% year over year. That is the biggest jump since 1982, but was in-line with expectations from economists surveyed by Dow Jones. The monthly increase was slightly hotter than expected.

The moves come after the December reading for the consumer price index, a gauge of prices across a broad spectrum of goods, showed a gain of 7% year over year. That is the biggest jump since 1982, but was in-line with expectations from economists surveyed by Dow Jones. The monthly increase was slightly hotter than expected.

However, interest rates already moved sharply higher in the first week of 2022, sparking a sell-off in tech stocks. That suggests the hot inflation report, and future actions by the Federal Reserve, may be at least partially priced in to the market.

Stocks tied to economic growth were some of the stronger performers, with chemical company Mosaic rising more than 3% and Freeport-McMoRan jumping 4.4%. Software giant Microsoft and Google-parent Alphabet each added more than 1%, while Tesla gained 4%.

Dish Network rose 3.7% following news that the company is again in merger talks with DirectTV, according to sources who spoke with the New York Post. On the downside, Biogen shares tumbled nearly 8% following news that Medicare will only cover the cost for the company's Alzheimer's drug Aduhelm for patients with early-stage symptoms who are enrolled in clinical trials.

Wednesday's moves continued a bounce-back week for equities, with tech stocks in particular clawing back sharp losses from the first week of the year that were accompanied by a jump in interest rates. Last week's decline brought parts of the market to key technical levels closely watched by Wall Street pros.

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