Magnificent 7 Reversal With CPI Data Releases? 😉
Markets creep slightly higher on Wednesday at premarket as investors await a key U.S. inflation reading later in the day, which will have significant bearing on the Federal Reserve’s interest rate decisions.
⚠️ Trading tips: Looking at calls above 370.5 and puts below 367.8 after CPI reading at 8:30am on Wednesday.
Signs of reversal for QQQ
Economists polled by Dow Jones expect the June U.S. consumer price index — due before the Wall Street bell on Wednesday — to rise 0.3% from May and 3.1% on an annualized basis. Core CPI, which excludes volatile food and energy prices, is projected to rise 0.3% on the month and 5% on the year.
June data for the producer price index — another well-watched gauge of inflation — is due Thursday before the bell. Both prints will be watched closely as indicators for the path of inflation and the Fed’s monetary policy.
Power To Mag 7
What To Watch Out For Before Earnings
- Apple, Inc. (NASDAQ:AAPL) rose modestly in premarket after KeyBanc Capital Markets raised the price target for the stock from $180 to $200.
- Chipmakers such as Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD) also climbed after positive analyst actions.
- Microsoft Corp. (NASDAQ:MSFT) edged up after reports said the company is planning to lay off more employees.
- Amazon, Inc. (NASDAQ:AMZN) could also be in the spotlight as the e-commerce giant commenced Prime Day sales.
The rotation coming to other sectors soon
U.S. consumer price data is due on Wednesday, while a producer prices report is due on Thursday. Several Fed officials said this week the central bank would likely need to raise rates further to curb inflation but that the end of its tightening cycle was getting close.
JPMorgan Chase & Co (NYSE:JPM) shares advanced 1.6% after Jefferies upgraded the stock to a "buy" ahead of the bank's quarterly results due on Friday.
Reports from JPMorgan and other big banks later this week are expected to unofficially kick off the start of the second-quarter reporting period. The S&P banking index rose 1.5%.
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Market should be halted until we figure out what is going on. Why isn’t this going up anymore??
The market is showing a high green day for CPI! Interesting and looking forward to it!
FAANG is all you need. 2023 has been a great year in these names..
If Inflation were really falling with high interest rates you’d be selling stocks.