PPI Repeat Of CPI, Or Whiff Of Deflation
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S&P 500 properly reacted to CPI coming in below expectations, for less than an hour, and without immediate vigor across the board. Tech being the star performer, Russell 2000, KRE, and interest rate-sensitive plays are tanking.
No rate cut tantrum? As if the tariff impact on inflation was over (Powell insists it‘s not), while I was clear yesterday premarket to clients about rents to play a positive role in bringing inflation down.
The market decided to focus on the prior month‘s readings, and not on the figure (core especially) to come in lower than expected, leading to a knee-jerk reaction that‘s slowly being remedied premarket. At the same time, SPY market breadth is very unappealing, and the McClellan summation index turned down following yesterday‘s close.
Today‘s packed video gives way more color to all of these, talking my Sunday call for USD to rise, oil price decline, and how to approach today‘s session in equities.
PPI coming in at 0.0% is a great figure, good for companies‘ earnings… will be reflected in stock prices later today.
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