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BEFORE THE BELL, 2/11/22

The S&P/TSX and American Futures remain on the downside after they encountered a sell-off yesterday, as investors feared that 40-year high inflation would trigger aggressive monetary-tightening by the Federal Reserve.

The Dow Jones Industrial Average sank 526.47 points (-1.47%) to 35,241, the S&P 500 slid 83.10 points (-1.81%) to 4,504, and the Nasdaq 100 slumped 351.32 points (-2.33%) to 14,705.


U.S. official data showed that consumer prices grew 7.5% on year in January (vs +7.3% expected, +7.0% in December), the largest increase since 1982. At the same time, The U.S. 10-year Treasury yield jumped 10 basis points to 2.042%.


Later today, February University of Michigan consumer sentiment index is expected at 67.5. European equity indices are under pressure. Germany's final reading of January consumer price index was up 0.4% on month, vs 0.5% the previous month. U.K. 4Q gross domestic product grew 1.0% over quarter, vs 1.1% expected. Also, industrial production was up 0.3% on month in December, vs 0.1% expected, and trade deficit was released at 2.3 billion pounds, vs 400 million pounds deficit expected.


Asian indices closed on the downside except the Japanese Nikkei which is closed for bank holiday.


Crude oil WTI price is rebounding. OPEC estimated that global oil demand would grow 4.2 million barrels a day or 4.2% for 2022 and said "upside potential to the forecast prevails, based on an ongoing observed strong economic recovery." In addition, OPEC's oil production rose by 64,000 barrels in January. Later today, oil field services company Baker Hughes will report the total number of rig counts for the U.S. and Canada. US SNAPSHOT Expedia (EXPE), an online travel agency, was well oriented after hours as quarterly earnings beat estimates. The company said that "that the impact from Covid was less severe and of shorter duration than previous waves." Zillow Group (ZG), an online real estate marketplace, soared in extended trading as quarterly sales topped expectations. Nordson (NDSN), a dispensing equipment manufacturer, will replace Xilinx (XLNX) in the S&P 500 index effective prior to the opening of trading on February 15, according to S&P Dow Jones Indices. Kellogg (K), a leading manufacturer of packaged food products, was downgraded to "underweight" from "neutral" at JPMorgan. Cloudflare (NET), a cloud services provider, is expected to jump on better-than-expected quarterly earnings. Upwork (UPWK), a work marketplace, dropped after hours as full-year adjusted Ebitda guidance missed disappointed investors.

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