Home Knightsbridge Insights Inflation: July CPI Not to Bad, or Not to Good

Inflation: July CPI Not to Bad, or Not to Good

by Paul Ebeling

#inflation #CPI

$DIA $QQQ $SPY $RUT

There is enough in the CPI report to spin the inflation narrative either way” — Paul Ebeling

DJIA +220.30 at 35484.97, Nasdaq -22.95 to 14765.12, S&P 500 +10.95 at 4447.70

The S&P 500 (+0.3%) and DJIA (+0.6%) set intraday and closing record highs Wednesday, as value/cyclical stocks continued to sport a Pullish bias following a better-than-feared Consumer Price Index (CPI) report for July. 

The Russell 2000 increased 0.5% after being down as much as 0.8% intraday. The NAS Comp declined 0.2%

Specifying the data, total CPI increased 0.5% M-M in July, as expected, while core CPI, which excludes food and energy, increased 0.3% M-M. On a Y-Y basis, total CPI was unchanged at 5.4% and core CPI lessened a bit to 4.3% from 4.5%.

Note that total CPI, driven by increases in the indexes for shelter, food, energy, and new vehicle, increased 0.5% M-M, as expected, while core CPI, which excludes food and energy, rose 0.3%. On a Y-Y basis, total CPI was unchanged at 5.4% and core CPI moderated to 4.3% from 4.5%.

The Key takeaway for the market is the moderation in the Y-Y readings, which feeds into the fake “peak inflation” narrative.

Shayne, Bruce and I do not expect that inflation rates will lessen much if an in coming months. They can remain at high marks given continued disruptions in supply chains and a good bit of anecdotal evidence from companies talking about raising prices to combat higher input costs and raising wages to attract employees.

Again, there is enough in the CPI report to spin the inflation narrative either way.

Have a prosperous day, Keep the Faith!

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.
CLOSE