NewsWare’s Trade Talk: Wednesday, May 11

S&P Futures were showing strong gains this morning but turned lower after the release of this morning's inflation report (CPI).  Data was expected to show that the consumer-price index rose 8.1% in April but came in at 8.3%. That is up from the same month a year ago, but decelerating from an 8.5% annual rate in March. Virus cases in China are significantly lower leading to speculation that the lockdown restrictions may soon be lifted. The yield of the 10-year Treasury bond retreated 5 bps, having fallen below 3%.

NOTE: CPI report was released following the recording of the episode.