Markets Right Now: Stock indexes open higher on Wall Street

Markets Right Now: Stock indexes open higher on Wall Street

The Dow Jones Industrial Average opened sharply lower before moving into positive territory by mid-morning.

Investment banks were in favor, as investors bet on a more rapid rise in interest rates, which would benefit the banks.

The S&P 500 energy index is down 12.7 percent over the last month.

Canadian National Railway was among the biggest drags on the index, losing 1.6 per cent to C$95.28. The FTSE 100 in Britain picked up 0.6 percent.

U.S. retail sales slipped 0.3 percent in January, according to data showed on Wednesday.

Separately, a report showed USA retail sales decreased 0.3 per cent last month, the biggest fall in almost a year and a surprise drop compared with economists' expectations of a 0.2 per cent increase.

Chipotle Mexican Grill surged 15.4 per cent after tapping Brian Niccol as chief executive. In early trading Wednesday, investors were mixed. On top of that, the Federal Reserve typically responds to higher inflation by hiking interest rates, ending the easy money days that have fueled a 9-year stock market boom. This was its biggest decline in 11 months, falling well below expectations for a 0.2 percent increase, indicating slower growth that accompanies higher inflation. "Meanwhile, retail sales results have caused a downgrade of GDP estimates across the Street".

If the opposite was the case, I think we'd be in a full blown attempt to crash the market ahead of a recession. It remains down 7.3 per cent from a record high on Jan 26 and is now priced at levels first reached in early December.

Inflation around 2 percent is still very low, but Wall Street traders fear that this could be the beginning of a quick run up in wages and prices.

All relies on the Consumer Price Index report that will be revealed today, on Wednesday.

"Wall Street won't take this inflation data well and it's likely to be a volatile day of trading". Markets in China and South Korea are closed on Thursday for the Lunar New Year holiday. "Strong price data presents hawkish risks for the Fed's dots at the March meeting. It would, in fact, seem all but guaranteed following the appointment of Jerome Powell earlier this month as Fed chair", Deppe opined.

The Standard & Poor's 500 index rose 35.69 points, or 1.3 percent, to 2,698.63.

Molson Coors Brewing Co. shares rose 6.3% after better-than-expected earnings results. If that can become less wobbly over the next few weeks, we might see our stock market go higher.

The yield on the 10-year Treasury held steady at 2.91 percent. The weak number raised some concerns about economic growth.

Some market watchers say the recent bout of turbulence may not be over.

Fourth-quarter earnings received a major boost from the recent U.S. corporate tax changes.

But the Dow Jones later rose to end the day at 24,893, up 253 from Tuesday's close.