The CML Close - Stocks down, inflation up, global instability is now a trend - 07-13-2022
Markets
Stocks dropped off of higher CPI and Core CPI readings than expected while tech job cuts continue and instability driven by inflation gains momentum.
| • SPX | 3,801.78 | -17.02 | (-0.45%) |
| • NASD | 11,247.58 | -17.15 | (-0.15%) |
| • DJIA | 30,772.79 | -208.54 | (-0.67%) |
| • R2K | 1,726.04 | -2.15 | (-0.12%) |
| • VIX | 26.78 | -0.51 | (-1.87%) |
| • Oil | 96.01 | +0.17 | (+0.18%) |
• CPI came in at 9.1% versus 8.8% estimates.
• Core CPI came in at 5.9% versus 5.7% estimates, but was still the lowest in six-months.
• Google adds its name to tech companies freezing hiring.
• Ukraine grain negotiations with Russia make progress.
• Inflation has pushed instability in yet another country: demonstrators in Panama have blocked major highways and access to ports just days after Sri Lankan President Gotabaya Rajapaksa fled the island nation in the middle of a deepening economic crisis.
Headlines of the Day
Dow slides 200 points, stocks dip as inflation hits highest level since 1981
Stocks slipped on Wednesday after June inflation data hit its highest level since 1981, adding to growing fears that the Federal Reserve will get more aggressive in its fight to tame rising prices.
Inflation rose 9.1% in June, even more than expected, as consumer pressures intensify
The consumer price index increased 9.1% from a year ago in June, above the 8.8% Dow Jones estimate. Excluding food and energy, core CPI rose 5.9%, compared with the 5.7% estimate.
Fuel Price Freeze Fails to Halt Panama Anti-Inflation Protests
Demonstrators have blocked major highways and access to ports. Construction workers to join anti-government protest Wednesday.
Google Is the Latest Tech Company to Slow Hiring
Google plans to slow the pace of hiring for the rest of the year, Chief Executive Sundar Pichai has told employees.
Ukraine Grain Talks With Russia Take Step Forward
Parties will meet again next week: Turkish defense minister. UN chief is ‘optimistic’ but says more work still is needed.
Economic Data Results for 7-13-2022
Inflation Rate YoY JUN
The annual inflation rate in the US accelerated to 9.1% in June of 2022, the highest since November of 1981, from 8.6% in May and above market forecasts of 8.8%
United States Inflation Rate MoM
The Consumer Price Index in the United States increased 1.3% month-over-month in June of 2022, the biggest rise since September of 2005, and above market forecasts of 1.1%.
United States Core Inflation Rate
The annual core inflation rate in the US slowed for a third month to 5.9% in June of 2022, compared to expectations of 5.7%, following a 6.0% reading in May. It is the lowest reading in six months, although there was a broad-based increase in prices.
United States Core Inflation Rate MoM
The CPI index for all items less food and energy in the US rose 0.7% month-over-month in June of 2022, accelerating from a 0.6% gain in May, and slightly higher than market expectations of 0.6%.
Economic Data Due Tomorrow on 7-14-2022
PPI YoY JUN
Core PPI YoY JUN
Jobless Claims 4-week Average
Initial Jobless Claims 09/JUL
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