Stock Market Update

The S&P 500 futures are up 90 points and are trading 1.5% above fair value, the Nasdaq 100 futures are up 360 points and are trading 1.8% above fair value, and the Dow Jones Industrial Average futures are up 668 points and are trading 1.6% above fair value.

Total CPI increased 0.4% month-over-month in December. That was a tad higher than the Briefing.com consensus estimate, but in-line with consensus estimates seen elsewhere. Core CPI, which excludes food and energy, jumped 0.2% month-over-month, which was in-line with the Briefing.com consensus estimate and slightly better than the consensus estimates seen elsewhere.

On a year-over-year basis, total CPI was up 2.9% versus 2.7% in November while core CPI was up 3.2% versus 3.3% in November.

The key takeaway from the report for a market worried about inflation heating up again is that these results were better than feared which, at first blush, shrouded the reality that the consumer inflation rate is still running well above the Fed's 2% target (albeit a target tied to the PCE Price Index).

Treasury yields turned sharply lower in response. The 10-yr yield is down 12 basis points from yesterday at 4.67%.