August 11, 2023

Markets:

S&P 500 futures retreated Friday morning after the latest inflation report due this week came in hotter than anticipated.

The July reading of the producer price index rose 0.3% from the previous month. Economists polled by Dow Jones expected the report, which gauges the prices wholesalers pay for raw goods, to increase 0.2% month over month.

The report comes a day after July’s consumer price index came in softer than anticipated on a year-over-year basis. Prices climbed 3.2% on an annual basis, less than the consensus estimate of 3.3%. However, the so-called core CPI, which excludes volatile food and energy costs, rose 4.7% from the prior year.

With just Friday’s trading session left in the week, only the Dow is on track to see wins.

The 30-stock index is up 0.3% week to date. Meanwhile, the Nasdaq Composite and S&P 500 have lost 1.2% and 0.2%, respectively. It would mark the second straight week of losses for both indexes. That weekly streak length would be a first for the Nasdaq since the period of four straight down weeks that ended in December 2022.

European markets opened lower Friday as investors continue to digest earnings and the latest U.S. inflation data.

Portfolio:

We enter today's final trading session of the week holding setups in KEY, IQ, TSLL, CVE, HPE, and APCX. They continue to chop this market for both sides of the trade over the last two weeks. But, and I cannot stress this enough, is changing. Patience is needed right now and we fully expect price to firm and narrative to change by month end with Fall trade in full swing with strong price activity and opportunities. Now we are just looking for the overreactions and then we proceed. The strongest Oppurtunites and money makes will come from this. Hope folks can see that. Let's have a strong session and look for opportunities to position ourselves for what's to come.