U.S. CPI print today makes Amazon stock more attractive: here’s why

By:
on May 10, 2023
Listen
  • U.S. CPI was up a slightly less than expected 4.9% in March.
  • BofA says AMZN has a negative correlation with inflation.
  • Amazon stock is already up 27% versus the start of 2023.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

S&P 500 opened up this morning after the Bureau of Labour Statistics reported inflation to have eased further in April.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Quincy Krosby reacts to the CPI report today

Copy link to section

Versus a year ago, consumer prices were up 4.9% last month – 0.1% less than the Dow Jones estimate. Reacting to the CPI print, Quincy Krosby – the Chief Global Strategist of LPL Financial said:

Today’s report suggests that the Fed’s campaign to quell inflation is working, albeit more slowly than they would like. But for financial markets, today’s inflation print is a net positive.

For the month, headline inflation came in up 0.4% for March which was in line with the economists’ forecast.

At writing, the benchmark S&P 500 index is up more than 8.0% versus the start of the year.

Amazon stock has a negative correlation with inflation

Copy link to section

Core inflation (excluding food and energy) was also in line with expectations last month at 0.4% up for the month and 5.5% versus March of 2022.

Also on Wednesday, Bank of America screened data going all the way back to 1975 and composed a list of S&P 500 companies that tend to outperform when consumer prices are trending down.

Coming in right at the top of that list was Amazon.com Inc (NASDAQ: AMZN) that has so far gained 27% this year as inflation continued to ease. The Wall Street firm sees further boost to demand on the back of declining prices.

Bank of America currently sees upside in Amazon shares to $139 – about a 30% upside from here.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Amazon Bank of America USA Indices Stock Market World