June 12, 2024

Markets:

Stock futures rose on Wednesday after May’s consumer inflation data came in lower than economists had expected.

The consumer price index stayed the same for the month of May, lower than the Dow Jones estimate for a 0.1% monthly increase. Year over year, the inflation yardstick increased 3.3%, which also came in below expectations. Monthly and yearly numbers for core CPI, which excludes the volatile prices associated with energy and food, were also lower than anticipated.

Stocks that have been under some pressure lately on concern higher rates were suffocating the economy, turned higher following the light CPI report and subsequent slide in yields. Bank of America and other financial shares increased. Home Depot and Lowe’s jumped.

Nividia, Broadcom and other technology shares also gained as the cooler inflation figures renewed investors’ risk appetites.The 10-year Treasury yield tumbled back below 4.3%.

During Tuesday’s trading, investors’ rotation into Apple helped lift the S&P 500 and the Nasdaq Composite to fresh closing highs. The iPhone maker announced its push into artificial intelligence at its developer conference this week, fueling a rally in the stock. The Dow was the outlier of the three major averages, losing 0.31%.

Investors are looking to Wednesday’s conclusion of the Fed’s two-day policy meeting, which will feature an rate policy decision and a subsequent press conference with Fed Chair Jerome Powell.

Portfolio:

We enter this monster session holding set-ups in GBTC, SG, MARA, AI, and PLTR.  This morning the markets are running due to CPI numbers.  Yesterday, the AI / tech revolution continued and I am not sure how anyone can deny whats occurring here.  The iPhone maker announced its push into artificial intelligence at its developer conference this week, fueling a rally in the stock and other AI related stocks.  This is only beginning!

We have the Fed today, once this event passes we can attack this market.  Queue is igniting with so much opportunity.  Just want to be safe in case the Fed has any unforeseen statements.  Always the wild card.  No reason to front run it.