S&P 500 and Nasdaq futures rose after the CPI surprise

He lives2 updates

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  Tuesday, March 12, 2024 at 8:33 AM EST

  Inflation remains high

  Inflationary pressures remained persistent in February as shelter and gas prices rose, according to a European Central Bank report Latest data Released by the Bureau of Labor Statistics Tuesday morning.

  The Consumer Price Index (CPI) rose 0.4% month-over-month and 3.2% year-over-year in February, slightly higher than the 0.3% monthly increase in January and the 3.1% annual gain.

  Both metrics roughly match economists' expectations for a 0.4% month-over-month increase and a 3.1% annual increase, according to data from Bloomberg.

  On a “core” basis, which excludes the more volatile costs of food and gas, prices in February rose 0.4% from the previous month and 3.8% from a year ago. Both measures were higher than economists' expectations for a 0.3% monthly increase and 3.7% annual gain.

  Read more here.

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  Tuesday, March 12, 2024 at 7:30 AM EST

  3 reasons behind the decline in Apple shares

  Apple (AAPL) stock has been looking less pretty in the past month.

  Shares of the tech monster fell 8.5%, lagging the S&P 500's 1.8% advance. Critics pointed to disappointment that Apple has not yet revealed its artificial intelligence plans as the main reason for the stock's weakness. Concern about the pace of Chinese demand did not help sentiment either.

  But there may be more at play here, notes Amit Daryanani, technology analyst at EvercoreISI, in a new note to clients this morning.

  Daryanani shares three reasons behind Apple's sell-off:

  “We've answered a slew of investor questions about what could unlock the stock's upside and help push momentum back. Overall, we think there's Three things This is what has led to the “underperformance” of AAPL over the past few weeks – 1) Turn on risk + skew to Nvidia/AI: I hear this a lot from investors who want to overweight “AI” names like Nvidia (NVDA) especially in terms of large cap, making them more comfortable taking dollars away from AAPL. 2) China's concerns – There are still sets of data indicating that Chinese demand is broadly weak and in the smartphone sector Apple may be ceding some share and 3) Regulatory concerns – This continues to hamper comfort around Apple. “Notably, we have heard concerns about the implications for the Department of Justice and Google as well as antitrust issues in the European Union.”