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The CML Close - Stocks Bounce (Around), All Eyes on Inflation Data, Memes are Dead - 05-10-2022

Date Published:

Stocks were mixed in a volatile day of trading.

The basket of meme stocks tracked by Bloomberg erased all of its mania gains.
Morgan Stanley says "retail investors are no longer the dominant crypto trader. .. the increased involvement of institutions, which are sensitive to availability of capital and therefore interest rates, has contributed in part to the high correlation between bitcoin and equities."

SPX 4,001.05 +9.81 (+0.25%)
NASD 11,737.67 +114.42 (+0.98%)
DJIA 32,160.74 -84.96 (-0.26%)
R2K 1,761.79 -0.29 (-0.02%)
VIX 32.99 -1.76 (-5.06%)
Oil 99.72 -3.37 (-3.27%)

• Biden says White House could drop Trump China tariffs to lower consumer prices

• Mortgages drive increase in US household debt to nearly $16tn

• Business optimism is still low, economic data shows."

Headlines of the Day
Stocks Bounce Back (and Forth) in Countdown to Key CPI Data
Stocks closed higher in a session marked by intense gyrations, with investors trying to make sense of comments from a multitude of Federal Reserve speakers ahead of key US inflation data on Wednesday.

Scorched Stock Traders Starting to See Hard Landing in Soft Data
On alert for bad news with prices in free fall, equity investors have started to view a lot of normally obscure data as evidence the Federal Reserve is wrong when it says the economy is strong.

Fed Officials Back Half-Point Hikes, Mester Open to Doing More
“We don’t rule out 75 forever,” Cleveland Fed President Loretta Mester said in an interview Tuesday on Bloomberg Television with Michael McKee. “When we get to that point in the second half of the year, if we don’t have inflation moving down we may have to speed up.”

Retailers are holding almost 20% more inventory than they have on average over the past three years
This poses a potential risk to profitability if consumer demand wanes and retailers are forced to increase promotions to clear inventory, according to Bloomberg Intelligence.

Heathrow records strong April, but unpredictability remains the harsh reality
London’s Heathrow airport said monthly passenger traffic in April topped 5 million people for the first time since January 2020 and raised its forecast for all of 2022 to about 53 million. Still, that would be only about two-thirds of pre-pandemic levels, the airport said in a cautious statement Tuesday.

Economic Data Results for 5-10-2022
United States Nfib Business Optimism Index
The NFIB Small Business Optimism Index in the United States was unchanged at 93.2 in April of 2022, the same as in March, and remaining at levels not seen in two years. More business owners expect business conditions to worsen over the next six months but the share of those raising selling prices eased from a record high in March and more expect real sales to be higher in the short-term.

United States IBD/TIPP Economic Optimism Index
The IBD/TIPP Economic Optimism Index in the US fell to 41.2 in May of 2022 from 45.5 in April and only barely above March's eight-year low of 41.

United States Redbook Index
Redbook Index in the United States increased by 13.10 percent in the week ending May 7 of 2022 over the same week in the previous year. The Johnson Redbook Index is a proprietary indicator of growth in retail sales, and provides advanced estimates of trends in retail sales ahead of official releases. 

Economic Data Due Tomorrow on 5-11-2022
Inflation Rate

Core Inflation Rate

MBA Mortgage Applications

Get the In the Know - End of Day Market Wrap


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