Stocks jumped into the green in early trade on Thursday on the heels of solid economic data.
The three major indices slipped over the course of the day, but ultimately still finished in the green.
First up, the scoreboard:
- Dow: 19,868.32, +75.79, (+0.38%)
- S&P 500: 2,263.21, +10.15, (+0.47%)
- Nasdaq: 5,463.04, +26.16, (-0.50%)
- US 10-year yield: 2.602%, +0.079
1. Larry Kudlow is being considered to chair the Council of Economic Advisers. Stephen Moore, a conservative economist who advised Trump’s presidential campaign, said at a luncheon in Michigan that Trump was set to choose Kudlow to be next chair of the council, a source who was in attendance told Business Insider.
2. CPI inflation comes in right in line with expectations. The reading of inflation registered a 0.2% gain for the month of November and a 1.7% gain from the same month last year. Economists had expected those exact numbers. The core index — which strips out volatile energy and food prices — came in at 0.2% growth from the last month and 2.1% year-over-year, as economists expected a reading of 0.2% month-over-month and 2.2% expected.
3. Empire manufacturing surged. The New York Federal Reserve’s Empire State manufacturing index jumped to 9.0 for the month of December, higher than the 4.0 expected from economists.
4. Gold and silver got smashed in the aftermath of the Federal Reserve’s Wednesday decision to raise rates. “Although almost every market participant expected a rate hike, gold has taken a significant hit since yesterday’s move by the Fed,” said RBC Capital Markets commodity strategists in a note on Thursday.
5. The Mexican central bank hiked rates more than expected. Banxico, as the bank is usually called, hiked rates by 50 basis points to 5.75%, up from the prior rate of 5.25%. “The central bank is waging an unofficial battle to try to support the currency
,” Andrew Stanners, investment manager at Aberdeen Asset Management said after the report.
6. The dollar is on fire. The US dollar index is up by 0.9% at 103.09 around 4 p.m. ET — an almost 14-year high. The index strengthened in the aftermath of the Federal Reserve’s decision to raise rates for the second time this decade.