CNBC Daily Open: Ready to read April’s CPI


People walk outside the New York Stock Exchange (NYSE) on Wall Street on May 03, 2023 in New York City.

Spencer Platt | Getty Images News | Getty Images

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Markets were quiet on Tuesday as investors awaited key inflation reports due later today and Thursday.

what you need to know today

  • US President Joe Biden discussed with the country’s top lawmakers on Tuesday debt ceiling But House Speaker Kevin McCarthy said He did not see “any new movement”. on a deal. McCarthy said he would meet with Biden again on Friday, along with other party leaders.
  • Shares of Airbnb plunged 11.2% in extended trading after the company warned Face a Tough Second Trimester, suggesting that consumers are turning their backs on travel. Nevertheless, Airbnb reported $117 million in net income in the first quarter, compared with a loss of $19 million a year earlier.
  • First time home buyers in UK will be able to do this Borrow up to 100% of the value of a property Without a deposit in a new mortgage scheme offered by Skipton Building Society. This is reportedly the first time since 2008 that 100% mortgage lending is in the market.
  • Supporter Economists expect the US CPI to show that prices still rising, largely due to an expected jump in used car prices. Stubbornly high inflation will put pressure on the Federal Reserve to keep interest rates unchanged.


Markets were quiet on Tuesday as investors awaited key inflation reports due later today and Thursday.

Investors’ hesitancy showed in low volume on Tuesday. SPDR S&P 500 ETF Trust (SPY), which tracks the S&P, traded 44 million shares, below its 30-day average of 76.1 million. Major stock indexes mostly fell, but only partially. The S&P 500 dipped 0.46%, the Dow Jones Industrial Average was mostly flat and the Nasdaq Composite dropped 0.6%.

However, for regional banks who experienced price volatility for a week, it was a welcome relief. The SPDR S&P Regional Banking ETF lost 0.4%, but PacWest, the Los Angeles-based lender, managed a 2.35% gain.

Most of the big moves occurred in extended trading as a number of companies reported earnings after the bell. Airbnb slumped 11.2% And Twilio sank 14.7% after both companies issued weaker-than-expected forecasts for the second quarter. A bright spot: Electric vehicle maker Rivian popped after 6.4% The company’s net loss was lower than analysts’ estimates.,

Investors are expecting the CPI reading for April to show a decline in prices. But there are indications that inflation will not cool down as soon as many would like. economists think April headline CPI number unchanged from March, April’s jobs report The labor market is still tightening, which could contribute to price pressures. Indeed, New York Fed President John Williams said he does not expect Inflation to fall to 2% for the next two years, It could be a rocky road ahead for both the economy and the markets.

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