Wall Street due to drop after rise in United States inflation data

Fourth quarter net income of US$133.6mln was up from US$101.1mln a year earlier; earnings per share (EPS) rose to 62 cents from 47 cents the year before and were six cents higher than the market had been expecting. "It shows the volatility is getting priced out of the market". About 7.8 billion shares changed hands in US exchanges, compared with the 8.4 billion daily average over the last 20 sessions.

Some market watchers say the recent bout of turbulence may not be over. The losers included the typically defensive sectors: consumer staples, utilities and real estate.

"In some ways you would say this is the worst possible number for United States equities: extremely weak USA retail sales and a higher CPI".

"The catalyst behind this bull market up until maybe the past year or so has just been the ability of this economy to grow, even if it's very sluggishly (.) without creating any negative consequences for the financial markets", he said. With the jump, the index reached a record closing high. The Dow Jones Industrial Average closed at 24,893.49 for a gain of 253.04 or 1.03%. It had risen as much as 574 earlier, led by big gains for Boeing and Apple.

The Toronto Stock Exchange's S&P/TSX composite index ended down 25.41 points, or 0.17 per cent, at 15,216.47. The Russell 2000 index of smaller-company stocks rose 13.15 points, or 0.9 percent, to 1,490.98. As bond yields rise, investors are likely to jump out of stocks and into bonds.

The CBOE Volatility Index, a widely-followed measure of short-term stock volatility and seen as a contributing factor itself to the sell-off, was last at 25.3 points, half the 50-point mark it touched last week. And the chart above of the S&P 500 index graphically shows that hot economy and corporate sector. All three fuelled the S&P 500 more than any other shares, leaving the index up 1.34 per cent for the session.

Last week, all three major USA indexes finished the five-day trading period more than 5 percent down each, with the Dow delivering its worst performance since January 2016. That includes several drops that were far larger than anything the market endured a year ago.

The overall economy, as measured by the gross domestic product, grew at a solid 2.6 percent annual rate in the final three months of a year ago.

Among other stocks, TripAdvisor gained about 18 percent after the company reported better-than-expected quarterly revenue.

Benchmark U.S. crude gained 9 cents to $59.29 a barrel in NY.

ASIA'S DAY: Japan's benchmark Nikkei 225 slipped 0.4 percent to finish at 21,154.17, while Australia's S&P/ASX 200 lost 0.3 percent to 5,841.20.

"And even though investors have revised up their expectations for interest rates recently, we think that they are still underestimating how quickly the Fed will raise interest rates in response to core price pressures".

Since Thursday, the S&P 500 has surged 4.56 per cent, its strongest four-session performance since mid-2016. The Trump administration has been pushing defense spending aggressively higher.

Vanessa Coleman