July 11, 2024

Markets:

Stock futures jumped after the new data showed the inflation rate fell to its lowest level in more than three years in June, bolstering the case for the Federal Reserve to cut rates later this year.

The consumer price index fell 0.1% last month from May, bringing the annual inflation rate down to 3%. Economists surveyed by Dow Jones had expected a 0.1% monthly increase and a 3.1% annual rate. Core CPI, excluding food and energy, came in at a 3.3% annual rate, also lower than economists expected.

Treasury yields tumbled following the CPI data as traders upped their bets for interest rate cuts.

Nvidia led chip stocks higher in the premarket as investors jumped back into bull market winners following the better-than-expected inflation reading. Costco Wholesale gained 3% to lead consumer stocks higher after the warehouse retailer announced its first membership rate increase since 2017.

Portfolio:

We enter todays session with a few strong movers in premarket led by TSLL, ASTS, NIO, CORZ, and GBTC. Now that we got through CPI, queue is igniting, and we look to release a few new setups today. CPI number can now bring the argument of cutting rates sooner. Really interested to see the headline response to this. Everything now – all sectors – have room to run now. We do want to make sure we have no short-term head fakes, but the overall trend continues to expand and grow. End of year movement will e insane! As we stated, the next several months has so much potential. The time has arrived.