The CML Close - End of Day Wrap - 08-10-2022
Markets
Stocks rose sharply as inflation readings came in lower than estimates with CPI growing 0% (unchanged) month-over-month, the lowest reading since COVID, and Core CPI rose the smallest amount since March of this year.
The same data is due out tomorrow for producers (PPI and Core PPI) as well initial jobless claims.
| • SPX | 4,210.24 | +87.77 | (+2.13%) |
| • NASD | 12,854.80 | +360.88 | (+2.89%) |
| • DJIA | 33,309.51 | +535.10 | (+1.63%) |
| • R2K | 1,969.25 | +56.36 | (+2.95%) |
| • VIX | 19.73 | -2.04 | (-9.37%) |
| • Oil | 91.57 | +1.07 | (+1.18%) |
• Headline CPI data for the month of July cam ein well below estimates and showed a 0% change from the month prior.
• Core CPI rose less than estimates, but still saw a 0.3% increase month-over-month.
• There's a tug of war between analysts between productivity increases and decreases due to COVID.
• China CPI rose by the most in two-years but remains tame.
Headlines of the Day
Market surges as investors cheer lighter-than-expected inflation report
Stocks rose sharply on Wednesday after a key inflation reading showed a better-than-expected slowdown for rising prices.
Wall Street Sees Fed Bond-Runoff End Well Before Powell Timeline
The Fed’s debt roll-off hits peak monthly pace in September. Barclays analysts see debt roll-off slowing in first quarter.
Goldman Says Pandemic Is Shaping a More Productive U.S. Economy
The Covid-19 pandemic is fueling a productivity boost for the U.S. economy by speeding up workplace digitization, according to an analysis by Goldman Sachs Group Inc.
US Productivity Falls for a Second Quarter, Labor Costs Surge
Consecutive declines in output per hour worst back to 1947. Unit labor costs jumped nearly 11% in second quarter.
China Consumer Inflation Reaches 2-Year High as Pork Surges
CPI increases 2.7% in July as pork prices jump 20% on year. Slowdown in core inflation shows demand remains weak.
Economic Data Results for 8-10-2022
CPI JUL
The annual inflation rate in the US slowed more than expected to 8.5% in July of 2022 from an over 40-year high of 9.1% hit in June, and below market forecasts of 8.7%.
CPI Rate MoM JUL
Consumer prices in the US were unchanged in July from June 2022, after rising at a 17-year high rate of 1.3% in the previous period, and beating forecasts of a 0.2% rise.
Core Inflation Rate YoY JUL
The annual core inflation rate in the US stood at a six-month low of 5.9% in July of 2022, unchanged from the previous month and below market forecasts of 6.1%.
Core Inflation Rate MoM JUL
The CPI index for all items less food and energy in the US rose 0.3% month-over-month in July of 2022, decelerating from a 0.7% surge in June, and slightly lower than market expectations of a 0.5% rise. It was the smallest increase in core consumer prices since March.
Economic Data Due Tomorrow on 8-11-2022
PPI MoM JUL
Core PPI MoM JUL
United States Initial Jobless Claims
Jobless Claims 4-week Average 06/AUG
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