Market Snapshot: Wall Street heads for more gains as bond selloff takes a breather, with more earnings on the way

What’s driving the markets?

Investors on Wednesday were getting a breather from a recent bond selloff. The yield on the Treasury note
TMUBMUSD10Y,
1.929%
was last down 4 basis points to 1.919% after reaching 1.954% on Tuesday, its highest since 2019.

But investors are still keeping an eye on the key 2% level, especially as important inflation data looms for Thursday. Annual consumer price inflation is expected to rise to 7.2% for January, after reaching a 40-year high of 7% in December.

Read: ‘This is not 1980’: What investors are watching as next U.S. inflation reading looms

“Improved sentiment is on the back of more optimism about reopening, meanwhile the hawkish Fed expectations and the rising yields continue being a serious threat to the actual gains, as the major triggers behind the latest bond selloff are still in play,” said Ipek Ozkardeskaya, senior analyst at Swissquote, in a note to clients.

“This means that there is a high risk of a sudden mood swing before Thursday’s U.S. inflation data,” she said.

Investors are also looking out for more earnings on Wednesday, from CVS Health Corp.
CVS,
+1.30%,
Yum Brands Inc.
YUM,
-0.09%
ahead of the open, followed by The Walt Disney Co.
DIS,
-0.02%
and MGM Resorts International
MGM,
+3.49%
after the close of the market.

Read: After ‘baptism by fire,’ Disney CEO looks for a rebound

Which stocks are in focus?

• Shares of Chipotle Mexican Grill Inc.
  CMG,
  +0.51%
  rose 6% in premarket trading after the fast-food chain more than doubled its profit to a record high in 2021, and spoke of expansion plans.

• Mandiant Inc.
  MNDT,
  +17.86%
  shares rose more than 2% after the cybersecurity software and services company reported forecast-beating results. Shares climbed during Tuesday’s regular session following a report that Microsoft Corp.
  MSFT,
  +1.20%
  was in talks to buy the company.

• Lyft Inc.
  LYFT,
  +5.37%
  shares fell 3% after the ride-share operator met its goal of full-year positive Ebitda and spoke of a “solid” fourth quarter, but offered a cautious forecast.

How are other assets trading?

• The ICE U.S. Dollar Index 
  DXY,
  -0.18%,
   a measure of the currency against a basket of six major rivals, fell 0.2%.

• West Texas Intermediate crude for March delivery 
  CL.1,
  -0.68%

  CLH22,
  -0.68%
  slipped 0.5% to $88.90 a barrel. Gold futures for April delivery 
  GC00,
  -0.07%

  GCJ22,
  -0.07%
  were flat at $1.827.60, near its Tuesday close, which was the highest most-active contract settlement since Jan. 26, FactSet data showed.

• Bitcoin 
  BTCUSD,
  -1.21%
  was down 0.3%

• The Stoxx 600 Europe 
  SXXP,
  +1.41%
  rose 1.5%, while the FTSE 100 
  UKX,
  +0.58%
  gained 0.5%.

• The Shanghai Composite 
  SHCOMP,
  +0.79%
   rose 0.7%, while the Hang Seng Index 
  HSI00,
  -0.54%
   jumped 2% and Japan’s Nikkei 225
  NIK,
  +1.08%
  rose 1%.