Thursday was a busy news day for the markets…
PPI showed inflation is up.
- +0.7% month-over-month (core +0.2%)
- +1.6% year-over-year (core +2.1%)
- The gains topped estimates but are in line with The Fed’s goal of +2.0%
Rising Oil prices are driving much of the higher costs.
- Crude topped $90/barrel for the first time since November 2022
- A resilient economy is keeping demand high
- Production cuts by Russia and Saudi Arabia are choking supply
And overnight, 12,000+ United Auto Workers (UAW) walked off the job, initiating an unprecedented strike.
- The strike is the first ever by the UAW
- Ford (F), General Motors (GM) and Jeep-maker Stellantis (STLA) are affefted
And despite all the doom and gloom, the market rallied.
The indexes posted decent gains in the face of the headwinds.
- Dow Jones -1.0%
- Nasdaq +0.8%
- S&P 500 +0.8%
- Russell 2000 +1.4%
Sector Round Up
All of the 11 sectors ended Thursday’s session with gains.
At the top…
- Real Estate (XLRE) +1.8%
- Utilities (XLU) +1.5%
- Materials (XLB) +1.4%
At the bottom…
- Financials (XLF) +0.9%
- Technology (XLK) +0.7%
- Healthcare (XLV) +0.3%
The trend is your friend.
The S&P 500 is pointing higher. That’s the simple truth.
We are maintaining our bullish outlook, though we will wait until October to start buying again. Another fall dip is likely.
Your latest readout…
- The VIX is making new 3-year lows this morning
- RSI levels are all neutral
- The put-to-call ratio remains oversold
Today marks the 15-year anniversary of the Collapse of Lehman Brothers.
The 158-year-old bank was one of the largest failures and is one of the biggest casualties of the Great Recession.
*JUPW support at $1.40
RDW support at $4
FNGR support at $7
PFIE support at $3
GIII support at $24
RCKT resistance at $24
NN on watch
MAPS support at $1.50
TNGX support at $8
CVNA support at $55
Secondary watchlist—float 100+ million
SNDL support at $2, resistance at $2.20