Trump Rally Extends, Inflation Under Control In The US

Trump Rally Extends, Inflation Under Control In The US

Trump Rally Extends, Inflation Under Control In The US


Lower costs for gas, airline tickets, new & used cars and wireless mobile phone plans kept US consumer prices flat in June. US inflation is still muted.

The unchanged reading followed a drop of 0.1% in May, the US Labor Department said Friday.

Inflation has climbed just 1.6% from a year ago. That is down sharply from February, when prices rose 2.7% from a year earlier in that frame.

Excluding the food and energy categories, prices rose 0.1% in June and 1.7% from a year earlier.

As inflation has slowed, the Fed’s plans to raise interest rates once more this year and 3X next year have come under greater scrutiny, do not expect a rate hike in September, and perhaps not in December either.

The Fed typically hikes rates to ward off rising inflation, yet price gains have declined this year.

Fed policymakers have lifted their benchmark short-term rate 4X in the past 18 months.

The measure of wireless phone costs fell 0.8% in June and is down 13.2% in the past year. That mostly reflects new unlimited data plans. The government records additional goods or services for the same price as the equivalent of a drop in price.

Gasoline prices fell 2.8% in June, after a 6.4% fall in May. Electricity costs dropped 0.6%.

Friday, the US major stock market indexes finished at a fresh record high: DJIA +84.65 at 21637.74, NAS Comp +38.03 at 6312.43, S&P 500 +11.44 at 2459.28.

Volume: Trade on the NYSE was lite again with 674.5-M/shares exchanging hands.

  • NAS Comp +17.3% YTD
  • S&P 500 +9.9% YTD
  • DJIA +9.5% YTD
  • Russell 2000 +5.3% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.45) Very Bullish (0.54) Bullish (0.35) Bullish (0.46)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.24) Neutral (0.19) Bullish (0.38) Neutral (0.17)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (0.21) Bullish (0.27) Bullish (0.29) Neutral (0.06)
HeffX-LTN Analysis VXX: Overall Short Intermediate Long
Bearish (-0.45) Bearish (-0.35) Very Bearish (-0.55) Bearish (-0.46)

Have a terrific weekend.

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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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