Wall St advances as investors eye upcoming inflation reading


Shares of Under Armour rose more than 15 percent after the sportswear maker reported quarterly revenue that beat analysts' estimates.

"Maybe if we saw the yield continue to rise, if it went up past 2.90, it might hit stocks", stated Michael Antonelli, managing director for institutional sales trading at Robert W. Baird in Milwaukee. Germany's DAX dipped 0.1 per cent and Britain's FTSE 100 rose 0.1 per cent. Japan's Nikkei 225 rose 1.5 per cent and in Hong Kong the Hang Seng advanced 2 per cent in a half-day trading session.

Technology, industrial and consumer-focused companies also rose.

The S&P 500 gained 0.51 per cent to trade at 2,712.32 and the Nasdaq Composite rose 0.47 per cent to 7,177.39.

In premarket trading, Dow component's Cisco climbed nearly 8 percent after the company posted upbeat results as well as a forecast. The MSCI world stock index was 1.2 percent higher.

The yield on the 10-year Treasury note rose to 2.91 percent.

At 6:49 a.m. EST, Dow e-minis were up 224 points, or more than 1 percent.

USA crude oil fell 68 cents, or 1.1 per cent, to $59.92 a barrel in NY.

Bond yields rose after the government said consumer prices climbed in January at a rate that was faster than economists had expected.

That comes after a remarkably calm year for stocks: there were only eight days in 2017 where the S&P 500 rose or fell at least 1 percent. 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. The number has increased to four or five but as long as the real economy looks strong, the stock market is likely to cope with a bit more inflation.

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Rail freight operator Aurizon Holdings rallied 2 percent as it reported a 52 percent increase in half-year profits.

Wall Street's recent pullback wiped out all of January's gains for the benchmark S&P 500, which is now down about 0.5 percent for the year.

The Dow Jones industrials fell 125 points, or 0.5 percent, to 24,508. Economists had expected inventories to edge up by 0.2 percent.

U.S. INFLATION: U.S. consumer prices, excluding the volatile food and energy categories, rose 0.3 percent last month, the most in a year. The major index futures are now pointing to a higher open for the markets, with the Dow futures up by 206 points.

The CBOE Volatility Index, a widely-followed measure of short-term stock volatility and seen as a contributing factor itself to the sell-off, was last at 25.3 points, half the 50-point mark it touched last week.

Underpinning confidence among many investors is the belief that the USA economy remains strong and that tax cuts enacted this year will spur corporate earnings and lead consumers to spend more.

As the stock market found some footing, it may not be out of the woods as investors await evidence as to whether US inflation is accelerating.

The Dow Jones industrials were indicated to open with a drop of about 320 points.

Cleveland Fed president Loretta Mester, a voting member in the central bank's rate-setting committee this year, said inflation should gradually rise this year, but not at a rate that requires a faster Fed reaction in terms of raising rates.