S&P 500 (SPY) Report – 08/11/23
Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
US futures dropped this morning following an inflation report that indicated higher-than-expected figures. The July producer price index, reflecting the cost wholesalers pay for raw goods, rose by 0.3% from the previous month, surpassing the anticipated 0.2% increase. This came on the heels of July’s consumer price index showing a year-over-year growth of 3.2%, slightly below the projected 3.3%. However, the core CPI, excluding the inconsistent food and energy expenses, showed a 4.7% rise year over year.
James Demmert of Main Street Research commented on the season’s investor optimism, suggesting it might be excessive. He emphasized on CNBC’s “Closing Bell: Overtime” that the recent data serves as a reminder of the Federal Reserve’s efforts, hinting at potentially higher rates for an extended period. Demmert also noted possible signs of a market pullback, indicating the ongoing retreat might be just one-third of what’s to come.
For the week, projections show the S&P 500 and the Nasdaq declining by 0.2% and 1.2% respectively, marking their second consecutive losing week. Notably, this would be the first time for the Nasdaq since its four-week decline in December 2022. Contrarily, the Dow is set to experience a slight 0.3% gain.
Friday Economic Events:
PPI 8:30am ET – High Volatility Expected
Consumer Sentiment 10:00am ET
Michigan Inflation Exp. 10:00am ET
Baker Hughes Rig Count 1:00pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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