US open: Stocks trade higher as markets continue to digest red hot CPI reading

dl wall street st new york city nyc nyse stock exchange ny dow jones nasdaq sp finance us usa united states of america — Wall StreetSharecast photo / Josh White

Wall Street stocks were in the green early on Friday as market participants continued to mull over yesterday's consumer price index and attempted to figure out the Federal Reserve's next move on the heels of the highest rate of inflation in decades.

As of 1510 GMT, the Dow Jones Industrial Average was up 0.39% at 35,378.63, while the S&P 500 was 0.25% firmer at 4,515.18 and the Nasdaq Composite came out the gate 0.08% stronger at 14,196.72.

The Dow opened 137.04 points higher on Friday after the hottest inflation reading in four decades led to a sharp sell-off in the previous session.

Friday morning's moves come after yesterday's CPI data showed consumer prices surged more than 7% in January, leading to a rout in risk assets that sent the yield on the benchmark 10-year Treasury note above 2% for the first time since 2019, while the rate-sensitive 2-year yield shot up more than 26 basis points for its biggest intraday move since 2009.

While yields had cooled off somewhat at the open on Friday, the 10-year note was still sitting at around 2.019%.

In reaction to the hotter-than-expected inflation reading, which marked the CPI's highest gain since February 1982, St Louis Federal Reserve president James Bullard called for an acceleration to rate hikes, with him suggesting that a full percentage point increase come into effect by the start of July.

On the macro front, a preliminary reading showed the University of Michigan's February consumer sentiment index fell sharply to 61.7, the lowest reading since October 2011 and well below forecasts for a print of 67.5.

In the corporate space, Newell Brands shares were in the green after the firm beat estimates on both the top and bottom lines, while Under Armour was in the red after reporting supply chain issues hampered trading last quarter.

No major earnings were slated for release on Friday.

Dow Jones - Risers

Chevron Corp. (CVX) $137.79 1.29%
Visa Inc. (V) $228.21 1.16%
Merck & Co. Inc. (MRK) $77.34 1.02%
Walgreens Boots Alliance, Inc. (WBA) $49.69 0.95%
International Business Machines Corporation (CDI) (IBM) $134.62 0.82%
Coca-Cola Co. (KO) $61.84 0.75%
Walmart Inc. (WMT) $137.09 0.74%
3M Co. (MMM) $160.90 0.73%
Walt Disney Co. (DIS) $153.18 0.67%
Amgen Inc. (AMGN) $230.30 0.65%