The best way to approach this market is to expect the unexpected. The investing world was waiting for a soft Consumer Price Index reading for September and was denied. In fact, it did even come in flat, but above estimates.
Wall Street was prepared for a repeat of the price action from when the August reading came in hot on September 13. Certainly, the premarket trading action indicated that it was heading that way. However, the bulls that were waiting for the 50% retracement from the March 2020 Covid low to January 2022 high, sprung into action.
Once the premarket low was defended, the rally was on in a big way. Just after 11:00 AM EST when the index went green on the session, the pace of the rally greatly accelerated. In fact, the index was on the brink of falling into the 3400 handle for the first time since November 2020 and ended up coming close to entering the 3800 handle.
For the session, the index gained 93.25 handles to close at 3681.75.
The value trade came into vogue as Berkshire Hathaway (NYSE: BRKB) was the biggest winner of the top components. For the session, the issue advanced by $11.73 or $4.4% to close at $275.73.
That was over 1% better than the cash index’s gain of 2.60%.
The biggest loser of the top components was Amazon.com Inc. (NASDAQ: AMZN). For the session, the issue declined by $0.37 or 0.47% to close at $112.37.
PreMarket Prep Stock Of The Day: Delta Airlines Inc. (NYSE: DAL)
Raised Q4 revenue guidance trumps Q3 miss on both the top and bottom lines. Read more on DAL here.
