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8/14/23 Hotter Inflation & Retail Earnings

News:

Friday was a mixed day on Wall Street.

Markets digested the latest Producer Price Index (PPI) inflation data.

Chart from BLS

Driven by services, prices increased…

  • +0.3% month over month
  • +0.8% year over year

Friday’s data was slightly higher than “expectations” but still below The Fed’s goal of 2%.

June’s figure was revised down from +0.1% to 0.0% month over month.

The indexes didn’t make any significant moves and ended the day mixed…

  • Dow Jones +0.3%
  • Nasdaq -0.7% 
  • S&P 500 -0.1%
  • Russell 2000 +0.1%

Sector Round Up

Safer stocks were favored as the risk-on sectors finished with losses. 7 of the 11 sectors ended the day green.

At the top…

  • Energy (XLE) +1.5%
  • Healthcare (XLV) +0.6%
  • Utilities (XLU) +0.6%

At the bottom…

  • Consumer Discretionary (XLY) -0.3%
  • Communications (XLC) -0.5%
  • Technology (XLK) -0.7%

Technicals: 

The S&P 500 continues to hold above a months-old support level…

SPY Daily Candles – Chart by thinkorswim

Buyers are buying where you’d expect them to. All signs from a technical standpoint are bullish.

Your latest readout…

Timing:

Earnings season continues this week with retailers.

Here are some of the names we’ll be watching…

  • Home Depot (HD) reports Tuesday pre-market
  • Target (TGT) Wednesday pre-market
  • JD.com (JD) Wednesday pre-market
  • Walmart (WMT) Thursday pre-market

Watchlist:

*Low Float
^Open Position

*RETO support at $3
*DSP support at $5, resistance at $6
*CLEU on watch
*UIHC support at $7
GRPN support at $9
EYPT support at $13
AAOI support at $12
EH support at $20, resistance at $23
EZGO support at $2.25
NN on watch
TDUP support at $3.50
LAB support at $2.50
TDS support at $16

Secondary watchlist—float 100+ million

HLLY support at $7
EVLV support at $7
KTOS
support at $16
RKT support at $11
BGC support at $5, resistance at $5.20

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