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The CML Close - Stocks finish mixed, recession worries rise, inflation data out tomorrow - 06-29-2022




Date Published:



Markets
Stocks bounced around and finished mixed. Worries of a recession are taking hold as layoffs are announced.

Tomorrow the PCE and Core PCE inflation indices for May are released.

SPX 3,818.83 -2.72 (-0.07%)
NASD 11,177.89 -3.65 (-0.03%)
DJIA 31,029.31 +82.32 (+0.27%)
R2K 1,719.37 -19.47 (-1.12%)
VIX 28.11 -0.25 (-0.88%)
Oil 109.44 -2.32 (-2.08%)


• Bond investors cut inflation hedges.

• U.S. GDP contracted an annualized 1.6% on quarter in Q1 2022.

• Powell vows to prevent inflation from taking hold.

Headlines of the Day
Stocks End in Stalemate as Fed and Inflation Remain in Focus
Concerns about economic growth and the possibility that central banks are raising interest rates too quickly continue to dominate.

Wall Street’s Great Inflation Trade Is Peaking Across Assets
Bond investors cut inflation hedges at fastest pace since 2013.

Companies cut spending, jobs as outlook grows less certain
Executives at electric car marker Tesla, drug maker Novartis and retailer Bed Bath and Beyond are cutting spending or jobs while others are shelving projects or deals as inflation rages and confidence in the world economy wanes.

Powell vows to prevent inflation from taking hold in the U.S. for the long run
Fed ChairJerome Powell vowed Wednesday at an ECB forum that U.S. policymakers would not allow inflation to take hold of the economy over the longer term. “There’s a clock running here, where we have inflation running now for more than a year,” the central bank leader noted.

Even at $25 an Hour, Key Tampon Factory Can’t Keep Enough Workers
Crunch is emblematic of ‘unsustainably hot’ US labor market

Economic Data Results for 6-22-2022
MBA Mortgage Applications
Mortgage applications in the US increased 0.7% in the week ended June 24th, a third consecutive weekly rise, led by a 1.9% advance in the refinancing index as the average rate on a 30-year fixed-rate mortgage fell for the first time in four weeks to 5.84%.

United States MBA Mortgage Market Index
The MBA Mortgage Market Index in the United States increased 0.7% to 322.70 points in the week ended June 24th 2022, a third consecutive weekly rise.

United States GDP Growth Rate
The American economy contracted an annualized 1.6% on quarter in Q1 2022, slightly worse than a 1.5% drop in the second estimate.


Economic Data Due Tomorrow on 6-23-2022
PCE Price Index YoY May (last month 6.3%, estimates are for 6.7%)

Core PCE Price Index YoY May (last month 4.9%, estimates are for 4.8%)

Personal Spending MoM MAY

Chicago PMI JUN




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