The latest CPI inflation report showed continued cooling.
- Year-over-year prices were up just +4%, the lowest rate in 2 years
- Month-over-month gains were modest at just +0.1%
Lower energy costs are driving the slowdown.
The market welcomed the report with open arms. The indexes all posted gains Tuesday…
- Dow Jones +0.4%
- Nasdaq +0.8%
- S&P 500 +0.7%
- Russell 2000 +1.2%
Sector Round Up
10 of the 11 sectors ended the session higher.
At the top…
- Materials (XLB) +2.3%
- Industrials (XLI) +1.1%
- Consumer Discretionary (XLY) +1.0%
The lone loser barely lost any ground…
- Utilities (XLU) -0.0%
Artificial Intelligence, Real Gains
AI continues to be the hottest theme of the year…
- The Beatles plan to use AI in place of John Lennon in an upcoming album
- The market made Nvidia (NVDA) the 7th US company to top $1 trillion market cap
- AMD (AMD) is launching a new chip to join in the boom
On the heels of the hype, shares of C3.ai (AI^) jumped 15% on Tuesday
- The stock is now up 147% since the beginning of May
- There was no specific catalyst to drive the latest gains
- Tuesday’s surge added about $600 million in market cap to the company … Its value is nearing $5 billion
The Dow Jones became the latest major index to log a technical breakout…
It also joined the overbought club.
Charts are pointing higher, but the RSI levels suggest buyers will grow tired soon.
Your latest readout…
- The VIX is holding below 16-–Bullish
- RSI levels—the big 3 indexes are overbought—Bearish
- The Put-to-Call Ratio is neutral
Perhaps this is a sell-the-news situation…
At 8:30 this morning, we’ll get another inflation reading in the form of the PPI report.
But the real newsmaker of the day will be The Fed.
At 2 PM, the latest interest rate will be announced. It’s widely expected to stay the same, marking an end of rate hikes.
At 2:30, Fed Chair Powell takes the stage. His words are likely to move the market more than the rate announcement.
Remember, a sell-the-news situation is possible.
*UTME support at $2.20, resistance at $2.40
*GSIT support at $7
VERA support at $10
AAOI on watch
^NA support at $2.40
AMTX support at $6
SYM support at $40 / $45
PLAY support at $44
MRSN support at $9
GRCL support at $5
^PLAB support at $23
UPST support at $35
^AI support at $40
CVNA support at $20
NVTS support at $9, resistance at $10
MRNS support at $10
Secondary watchlist—float 100+ million
SEEL resistance at $1.10
ACHR on watch
^IOT on watch
^MVIS support at $6
DHC on watch
JOBY on watch
RKLB support at $5.50
SOFI on watch
^PLTR support at $14, resistance at $16
CCL on watch