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5/12/23 These Prices Return to Pre-Inflation Pre-Pandemic Levels

News:

The PPI, which tracks the prices manufacturers are paying, has returned to pre-inflation, pre-pandemic levels…

Chart from the Bureau of Labor Statistics

In April, producer’s prices rose just 2.3% since April of last year. That figure is only a smidge higher than The Fed’s target of 2.0%.

Stocks showed little reaction to the data.

The indexes closed the day mostly lower, but the Nasdaq continued to outperform…

  • Dow Jones -0.6%
  • Nasdaq -0.2% 
  • S&P 500 +0.2%
  • Russell 2000 -0.8%

It was another 9-month high close for the Nasdaq, which wasn’t surprising … The Nasdaq typically outperforms in May.

Sector Round Up

The sectors reveal “risk-on” stocks were the favorite during Thursday’s session.

But only 3 of the 11 sectors ended the day higher.

The winners…

  • Communications (XLC) +1.0%
  • Consumer Discretionary (XLY) +0.5%
  • Consumer Staples (XLP) +0.3%

At the bottom…

  • Utilities (XLU) -1.0%
  • Real Estate (XLRE) -1.0%
  • Energy (XLE) -1.2%

Technicals: 

The S&P 500 has held above the critical support level through big tech earnings and the dump of inflation data…

SPY Daily Candles – Chart by thinkorswim

Plus, futures are higher this morning … The bulls have demonstrated strong resolve, and we expect markets to move higher.

Our latest reading shows the market is clear to move in the direction of least resistance…

Timing:

There are no significant scheduled news items for next week.

We’ll watch for earnings winners and losers to keep tabs on the latest market trends.

Next week is options expiration—There could be some added volatility toward the end of the week.

Have a great weekend!

Watchlist:

*Low Float
^Open Position

*NERV support at $6
MAXN support at $32
APYX support at $4
CRVS on watch
ASRT support at $7
IDYA support at $20
COCO support at $24
NNOX support at $18
HOOK support at $1.80
AQST support at $2.40
BLRX on watch
GMDA support at $2
TNYA support at $7
^TDUP support at $3
^CBAY support at $10
JELD support at $14

Secondary watchlist—float 100+ million

RDFN support at $10
EVLV on watch
TIO
support at $2.50
MDGX resistance at $6
ACVA support at $14
XERS support at $2.40
VSH support at $24
RIOT resistance at $12

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