Consumer prices climbed 8.5 percent year-on-year, lifted by energy prices in the wake of Russia's invasion of Ukraine. Without fuel and food, core prices advanced 6.5 percent, rising at a slower pace than in previous months.

"Given the pop in gasoline prices in March, these numbers are likely to represent something of a peak,” Gregory Daco, the chief economist at Ernst & Young’s strategy consultancy, EY-Parthenon, told the New York Times.

Yesterday, the Nasdaq lost 2.4%. In five sessions, the technology index fell 7.7%, weighing on the S&P500 (-3.7% in 5 sessions). Fears are still focused on the effect of the Fed's rate hike on economic dynamics. The war in Ukraine has brought its share of additional disorder and the Covid surge in China is adding pressure to supply chains.

It is in this context Earnings season Q1 22 starts. Tomorrow, several American finance companies will release their results, including JPMorgan Chase and BlackRock, which have not suffered too much from the current environment.

 

Today's economic highlights:

Two important indicators today with the German ZEW financial confidence index for April and the US inflation figures for March.

The dollar/euro pair remains unchanged at EUR 0.9195. The ounce of gold rose to USD 1969. Oil remains firm with North Sea Brent at USD 102.96 per barrel and US WTI light crude at USD 98.59. The yield on 10-year US debt rises to 2.81%. Bitcoin has fallen to USD 40,000 a unit

 

On markets:

* American Airlines announced Tuesday that it expects revenue to fall 16% in the first three months of the year compared to the first quarter of 2019, which was before the COVID-19 pandemic, as the sector suffered from a lack of headcount in particular.

* Meta Platforms - The owner of Facebook, Instagram and Whatsapp announced Monday night the launch of digital asset sales testing tools, which will integrate its Horizon Worlds virtual reality platform. The stock was up slightly in early pre-market trading.

* Gilead Sciences - The Food and Drug Administration (FDA) on Monday night lifted an order to halt clinical trials of a treatment for certain forms of blood cancer developed by the company, which was issued in January to review safety data from those trials. Piper Sandler raised its price target after the decision to $72 from $71.

* Myovant and Pfizer - The U.S. drug agency informed the two U.S. companies that their application to extend the use of Myfembree for endometriosis pain was deficient. In pre-market trading, Myovant is down more than 20%.

 

Analyst recommendations:

  • AstraZeneca: Berenberg remains Buy with a price target raised from GBp 100 to GBp 120.
  • Becton, Dickinson and Company: Morgan Stanley adjusts price target to $295 from $285.66, keeps overweight rating.
  • Blackrock: Jefferies adjusts price target to $873 from $865, maintains buy rating.
  • Cboe Global Markets: Jefferies & Co adjusts price target to $125 from $128, maintains hold rating.
  • Cisco Systems: Citigroup lowered its recommendation to "sell" from "neutral.
  • Farfetch: BTIG Research adjusts farfetch price target to $26 from $34, maintains buy rating.
  • Helmerich & Payne: Benchmark Company LLC initiated coverage with a recommendation of buy. PT set to $53.
  • Imperial Brands: Jefferies remains "Hold" with a price target raised from GBp 1,595 to GBp 1,668.
  • Ingredion: Credit Suisse downgrades to neutral from outperform. PT up 4.3% to $94.
  • Intermediate Capital: Goldman Sachs starts coverage at buy targeting GBp 2480.
  • Nasdaq: Jefferies & Co adjusts price target to $182 for $172, maintains hold rating.
  • Popular: Keefe, Bruyette & Woods reinstated coverage with a recommendation of outperform. PT up 42% to $115.
  • Rolls-Royce: J.P. Morgan downgrades from neutral to underweight, targeting GBp 75.
  • Sailpoint Technologies: KeyBanc downgrades to sector weight from overweight, keeps $63 price target.
  • Starbucks: Citigroup lowered its recommendation to "neutral" from "buy", citing uncertainties related to the change of CEO and the labor market.
  • The Sherwin-Williams Co: Mizuho adjusts price target to $310 from $350, keeps buy rating.
  • Verint: Goldman Sachs downgrades to neutral from buy. PT up 11% to $57.
  • Warner Bros Discovery: Deutsche Bank adjusts price target to $48 from $40, maintains buy rating
  • Waste Management: BMO Capital Markets downgrades to market perform from outperform. PT up 6% to $174.