Trump Rally Extends on Economic Growth, Consumer Prices Up

Trump Rally Extends on Economic Growth, Consumer Prices Up

Trump Rally Extends on Economic Growth, Consumer Prices Up

$DIA, $SPY, $QQQ, $VXX

US stock market indexes finish at record highs for 5th day running

US consumer prices recorded their biggest increase in nearly  4 years in January as households paid more for gasoline and other goods, suggesting inflation picking up.

The US Labor Department said on Wednesday its Consumer Price Index jumped 0.6 percent last month after gaining 0.3% in December. January’s increase in the CPI was the largest since February 2013.

In the 12 months through January, the CPI increased 2.5%, the biggest Y-Y gainer since March 2012. The CPI rose 2.1% in the year to December.

Economists polled forecast the CPI rising 0.3% last month and advancing 2.4% from a year ago.

Inflation is trending higher as prices for energy goods and other commodities rebound as global demand picks up.

The core CPI, which strips out food and energy costs, rose 0.3% last month after increasing 0.2% in December. That lifted the Y-Y core CPI increase to 2.3% in January from December’s 2.2% increase.

The Fed has a 2% inflation target and tracks an inflation measure which is currently at 1.7%.

Gradually firming inflation and a tightening labor market could allow the Fed to raise interest rates at least 2X this year. Fed Chairwoman Janet Yellen told lawmakers Tuesday that “waiting too long to remove accommodation would be unwise.”

The Fed hiked its overnight interest rate last December by 25 bpts to a range of 0.50 to 0.75%.

Wednesday, the major US stock market indexes finished at: DJIA +107.45 at 20611.86, NAS Comp +36.87 at 5819.46, S&P 500+11.67 at 2349.25

Volume: Trade on the NYSE came in at 974.6-M/shares exchanged.

  • NAS Comp +8.1% YTD
  • S&P 500 +4.9% YTD
  • DJIA +4.3% YTD
  • Russell 2000 +3.4% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.29) Neutral (0.19) Bullish (0.31) Bullish (0.36)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.34) Bullish (0.25) Bullish (0.48) Bullish (0.28)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.58) Very Bullish (0.54) Very Bullish (0.67) Very Bullish (0.54)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.38) Bearish (-0.42) Very Bearish (-0.70) Neutral (-0.03)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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