[Platinum Insights] (5.10.23)

Good morning.  

The latest reading on the U.S. consumer price index is slated for release this morning, with economists polled by Dow Jones expecting a year-over-year gain of 5% for April. Stock market futures are currently down prior to the CPI release.  

“If CPI comes in hot, coupled with a stable market, decent earnings and stable jobs, it may not look good for the Fed’s future actions,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs.  

Markets continued to monitor negotiations over the US debt ceiling, as a meeting between President Joe Biden and congressional leaders late on Tuesday yielded little progress.  

Alphabet on Wednesday is expected to unveil more artificial intelligence in its products to answer the latest competition from Microsoft Corp, which has threatened its perch atop the nearly $300-billion search advertising market.  

In extended trading, Airbnb and Twilio both tumbled more than 10% on weak forecasts, while Rivian jumped 6% on a narrower-than-expected loss. Disney, Roblox and Robinhood, among others, will report earnings on today.  

WTI crude futures fell below $73 per barrel. Gold steadied around $2,030 an ounce while the yield on the US 10-year Treasury note decreased slightly to 3.5%.  

The major averages continue to trade sideways as they finished Tuesday’s session lower, with the S&P 500 and Nasdaq Composite falling 0.46% and 0.63%, respectively. The Dow Jones Industrial Average declined 0.17%.  

Range-bound markets can be challenging for swing traders as they lack clear trends and can result in whipsaw movements. It is important to exercise caution, maintain discipline, and adjust your risk management and trading plan accordingly to account for the unique characteristics of range-bound price action.