Core CPI Fell & US Market Gains & Apple Fell.
The US consumer price index (CPI) report for August 2023 came in higher than Wall Street expectations (see below).
August inflation reading came in at 3.7% YoY.
This is +0.1% higher than Wall Street expectation of 3.6%.
What has been alarming is that it is +0.5% higher than July’s reading of 3.2%.
Gasoline was the largest contributor to monthly inflation rise, accounting for > 50% of the jump.
It spooked the US market to a certain extent.
However, if we looked at August 2023 Core CPI, (less Energy & Food), its a different picture.
Core CPI came in at 4.3% YoY, inline with market expectations.
The better news is that it is 0.4% lower than July’s reading.
The Fed is likely to refer this reading instead of the CPI YoY.
The CME Fedwatch tool forecast of interest rate remaining status quo is very likely.
US market spooked by US’s August CPI dipped at the start of trading.
However, as the Core CPI data sinks in, market is recovering from the initial panic attack and recovering some of the earlier lost grounds.
By the time market closed:
DJIA: -0.20% (-70.64 to 34,575.53).
S&P 500: +0.12% (+5.54 to 4,467.44).
Nasdaq: +0.29% (+39.97 to 12,813.59).
Despite the mini euphoria, $Apple(AAPL)$ continued to fall a day after its Tue, 12 Sep 2023 annual “Wonderlust” convention where the company showcased its latest offerings.
Immediately after market opened, it fell to its morning lowest of $174.35 before recovering its lost ground around noon.
Afternoon trading saw Apple stock losing steam and trending downwards again.
Just before end of day, it felt below morning’s low, closing off at $174.21.
As mentioned in my previous post, if history proves to be “right” Apple stock will continue to fall for the rest of September 2023 (see below).
Using Apple’s stock prices in September 2022, I have plotted its chart / graph.
Last year Apple’s convention was held on 07 Sep 2022.
As could be inferred, the stock prices have gone through wild swings of highs and lows.
What is important is that it ended the September month -5.03% lower (ball park).
Question investors need to ask themselves is “When Is The Right Entry Price For Me?”
Do you think US market will continue to consolidate or rally today?
Do you think now is the time to buy into Apple or wait?
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