Stocks Jump Ahead of Fed Meeting, Inflation data
5:20 pm Monday, December 12th, 2022
Things were shaping up to be more positive today following last week’s sell off that saw the main indices lose between 2.8% and 5.1%. Shortly after the open, the S&P 500 bounced off the previous closing level (3,934.8) before running into resistance around Friday’s intraday support level (3,955).
Some M&A news ahead of today’s open has helped fuel some bargain hunting activity. Namely, Amgen (AMGN 274.73) plans to acquire Horizon Pharmaceuticals (HZNP) for $116.50 per share and Thoma Bravo plans to acquire Coupa Software (COUP) for $81.00 per share.
A sizable gain in Microsoft (MSFT 250.29, +4.87, +2.0%) also boosts the broader market. Microsoft is trading up after announcing a 10-year strategic partnership with the London Stock Exchange Group that will also see Microsoft purchase an approximately 4% stake in the London Stock Exchange Group.
Still, market participants trade in a more reserved fashion in front of the November Consumer Price Index on Tuesday and the FOMC decision and release of an updated Summary of Economic Projections on Wednesday.
The CBOE Volatility Index, up 7.2% or 1.64 to 24.47, reflects the increased hedging activity in front of those events.
Most of the S&P 500 sectors sit in positive territory currently. Energy (+1.9%) leads the outperformers amid rising oil prices while communication services (-0.4%) sits at the bottom of the pack.
Treasury yields have risen well off overnight lows. The 10-yr note yield, which hit 3.52% overnight, sits at 3.58% now. The 2-yr note yield, which hit 4.34% overnight, sits at 4.37% now.
