@theMarket: Inflation Down, Stocks Up & the Fed on HoldBy Bill Schmick,
03:15PM / Friday, June 14, 2024 | |
Stocks hit an all-time high as macroeconomic data supported the view that the rate of inflation was falling, even while the economy continued to grow. However, the Fed said it wants to hold off on interest rate cuts until they get some more data.
Both the Consumer Price Index (CPI) and the Producer Price Index (PPI) for May showed cooler inflation data. CPI came in at plus-3.3 percent down from 3.4 percent in April. Prices for some household items such as gasoline and bacon declined.
The PPI went down 0.2 percent in May compared with market expectations of a 0.1 percent increase and after a rise of 0.5 percent in April. Prices for goods fell 0.8 percent, the 0 Comments
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@theMarket: Bond Yields Higher, Inflation Lower With Stocks Caught in MiddleBy Bill Schmick,
03:12PM / Friday, May 31, 2024 | |
This week, bond yields across the board rose on the back of several disappointing U.S. Treasury bond auctions. However, the Fed's key inflation index, the PCE, for last month came in a touch cooler. It helped, but not enough to keep stocks in the green for the week.
Three bond auctions this week met with tepid interest from buyers sending bond yields to their highest levels in over a month. The scorecard on government debt sales was 0 for three as two-, five-, and seven-year notes worth a total of $183 billion faced a chilly reception from bond investors worldwide. Who can blame them?
As the months pass, the U.S. debt level continues to rise. All most 0 Comments
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@theMarket: Commodities and China Get Smoked While AI ThrivesBy Bill Schmick,
03:42PM / Friday, May 24, 2024 | |
It had to happen at some point. Gold, silver, and copper prices experienced a steep downturn this week. Profit-taking set in as traders rung the cash register after weeks of gains. However, tech got a boost from Nvidia's earnings.
And while tech took the lead, keeping the S&P 500 and NASDAQ up, the rest of the market did not fare as well. The strength in the economy and the early estimates of the Purchasing Managers Index called the flash PMI, indicated that prices were still increasing. The publication of the Federal Open Market Committee notes from the last Fed meeting on Wednesday didn't help.
Here's what the Fed members wrote: 0 Comments
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@theMarket: Have Odds Improved for a Fed Rate Cut?By Bill Schmick,
03:50PM / Friday, May 17, 2024 | |
This week's inflation data heartened investors. Equities and commodities rose while bond yields and the dollar fell. The question is whether the data will convince the Fed to relent on keeping interest rates higher for longer.
If we take a long-term view, the Consumer Price Index (CPI) change was minuscule. For April, inflation gains slowed from 3.5 percent to 3.4 percent, while core inflation increased over the last 12 months by 3.4 percent compared to 3.5 percent in March. That's no big deal, and yet, the numbers did break the trend of warmer CPIs over the last three months.
The cooler inflation announcement caught investors by surprise since most 0 Comments
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@theMarket: Markets Flirt with All-Time HighsBy Bill Schmick,
03:18PM / Friday, May 10, 2024 | |
Like birds on a wire, stocks wobbled early this week neither moving higher nor lower. Higher jobless claims and an okay Treasury auction nudged the indexes towards the goal line with the S&P 500 Index above the 5,200 level for the first time in a month.
However, there is still a lot of indecision out there. Growth seems to be slowing. Inflation remains sticky. Consumer confidence is falling, and the Fed is on hold. Countering those negatives, there are some positives. Corporate earnings have been good. Yields remain in a range and the dollar has pulled back from highs. Neither the bulls nor the bears have enough data to end this stalemate. This week should resolve the 0 Comments
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