EQUITIES LEAP THIS WEEK AS INFLATION DATA COMES IN LOWER THAN EXPECTED AND A SOFT-LANDING BY THE FED IS LOOKING MORE POSSIBLE
Weekly Market Update — July 15, 2023
|Weekly Market Performance
*Source: Bonds represented by the Bloomberg Barclays US Aggregate Bond TR USD. This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results.
Stocks and equities Jump This Week on Softening Inflation Numbers
Stocks had a very good week, driven first by positive CPI (consumer inflation) data on Wednesday and then driven further by arguably better PPI (producer inflation) data on Thursday. When the week was over, the S&P 500 ended less than 7% from its all-time high and NASDAQ is about 13% below its all-time high.
The triggering event of the week was Wednesday’s release of Consumer Price Index inflation data showing that both headline and core (excluding food and energy prices) inflation rose 0.2% in June. In addition, the annual increase in headline inflation slowed to 3.0%, its slowest pace since March 2021, while core inflation slowed to 4.8%, the slowest since October 2021.
Then on Thursday, another triggering — if not reinforcing event — was the release of the Producer Price Index inflation data showing that headline producer prices rose only 0.1% over the year ended in June. Further, core producer prices rose 2.4% over the period, which is really close to the Fed’s overall inflation target of 2.0% and their slowest pace since January 2021.
In addition to inflation numbers (discussed later), Wall Street had to digest a lot of additional economic data, including that:
Inflation Cools to 3.0% Over the Past 12-Months
On Wednesday before markets opened, the U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers rose 0.2% in June on a seasonally adjusted basis, after increasing 0.1% in May. Over the last 12 months, the all items index increased 3.0% before seasonal adjustment.
Over the Past 12-Months
Inflation Since 1965
Producer Price Index Slows Too
Then on Thursday, the U.S. Bureau of Labor Statistics reported that the Producer Price Index for final demand increased 0.1% in June. In addition, Final demand prices declined 0.4% in May and edged up 0.1% in April. On an unadjusted basis, the index for final demand advanced 0.1% for the 12 months ended in June.
Final Demand Prices
Final Demand Services
Earnings Season Kicks Off
On Friday, research firm FactSet reported that for Q2023 (and with just 6% of S&P 500 companies having reported actual results):
✅ BOOK AN APPOINTMENT TODAY: https://calendly.com/tdwealth
🔴 SEE ALL OUR LATEST BLOG POSTS: https://tdwealth.net/articles
If you like the content, smash that like button! It tells YouTube you were here, and the Youtube algorithm will show the video to others who may be interested in content like this. So, please hit that LIKE button!💥
🎯🎯🎯Don’t forget to SUBSCRIBE here: https://www.youtube.com/channel/UChmBYECKIzlEBFDDDBu-UIg
✅ Contact me: TDavies@TDWealth.Net
🔥🔥🔥 ====== ===Get Our FREE GUIDES ========== 🔥🔥🔥
🎯Retirement Income: The Transition into Retirement: https://davieswealth.tdwealth.net/retirement-income-transition-into-retirement
🎯Beginner’s Guide to Investing Basics: https://davieswealth.tdwealth.net/investing-basics
✅ LET’S GET SOCIAL
Youtube Channel: https://www.youtube.com/c/TdwealthNetWealthManagement
Lat and Long
Davies Wealth Management
684 SE Monterey Road
Stuart, FL 34994
**Davies Wealth Management makes content available as a service to its clients and other visitors, to be used for informational purposes only. Davies Wealth Management provides accurate and timely information, however you should always consult with a retirement, tax, or legal professionals prior to taking any action.