S&P 500 (SPY) Report – 07/13/23

Good morning traders! 

The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it… 

Stocks are set to continue their rally on Thursday as investors await new data to confirm a slowdown in inflation and prepare for the start of the earnings season. A decrease in consumer inflation to a two-year low boosted markets on Wednesday and put pressure on the dollar. If inflation continues to cool, the Federal Reserve may consider slowing its rate-hike campaign, although most traders still predict over a 90% chance of a rate increase in July.

The Producer Price Index (PPI), which measures the average change in selling prices received by domestic producers for their output, increased by 0.1%, which is less than the expected 0.2%. The year-over-year increase in producer prices was also lower than expected, at 0.1% compared to the projected 0.5%. Core inflation, which excludes volatile items like food and energy, rose 2.4% over the year, which is below the estimated 2.8%.

In addition, the number of initial unemployment claims surprisingly fell to 237,000 from 248,000 in the previous week, contrary to expectations that they would rise to 249,000. The real kickoff will be on Friday with results from major Wall Street banks like JPMorgan and Citi.

Thursday Economic Events:
Initial Jobless Claims 8:30am ET
PPI-Final 8:30am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET
Treasury Statement 2:00pm ET

Fed Speaker Scheduled:
Mary Daly 11:10am ET
Christopher Waller 6:45pm ET

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