Consumer Price Index

Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Wednesday, March 12.

State of Play

Stocks got bounced around yesterday and closed lower, but well off the lows. As we eye our board of indicators for signs of direction at 0635, it does look like risk appetite wants to re-emerge:

• Stock index futures are pointing to modest gains. Tech is leading things, with the Nasdaq up 0.7%. S&P 500 futures are up 0.5%;

• Commodities are moving higher, one indication that recessionary fears might be overblown. Copper is up 1.5%. WTI crude oil is up 1% to trade around $67/barrel;

• Cryptos aren’t doing much. Bitcoin is unchanged around $82,500;

• Bonds are quiet as well. The 10-year yields 4.28%.

Today’s Known Events

The focus shifts back to inflation with the Consumer Price Index, out at 0830. The numbers we’re looking for, based on economist estimates:

• 0.3% month-over-month growth for headline CPI (0.5% last month);

• 0.3% MoM Core CPI (0.4%)

• 2.9% year-over-year headline CPI (3.0%);

• 3.2% YoY Core CPI (3.3%).

The only interesting earnings today are after the close: Adobe (ADBE 0.00%↑), UiPath (PATH 0.00%↑), SentinelOne (S 0.00%↑), American Eagle Outfitters (AEO 0.00%↑).