Daily Advantage Newsletter

 Commentary The rally seemed to lose some steam yesterday with investors likely needing a minute to process the major shift in sentiment this week. Remember, just last week Wall Street was ready to give up hope on Fed rate cuts this year. Now, pullbacks in both job gains and inflation have restored expectations to about where they were before the...

 Commentary The Consumer Price Index (CPI) came in just as expected with the headline rate slowing to +3.4% from +3.5% previously, while the “core” rate (strips out food and energy) dipped to +3.6% from +3.8% in March and the lowest in three years. This is also the first time in 2024 that CPI has not overshot Wall Street’s forecast so it’s going...

Commentary Investors today are highly anxious to see the Consumer Price Index (CPI) after the Producer Price Index (PPI) yesterday showed wholesale prices were still running hotter than expected in April. Traders are looking for  a pullback in headline CPI to an annual rate of +3.4% from +3.5% in March, with “core” (strips out food and energy)...

Commentary Stock traders are treading cautiously ahead of key inflation data that could have a big impact on Federal Reserve interest rate expectations. The spotlight today is on the Producer Price Index (PPI). Wall Street expects a slight uptick in headline PPI to an annual rate of +2.2% from +2.1% in March and a decline in the “core” rate...

 Commentary Wall Street is braced for what could be a volatile week amid key inflation data as well as earnings results from several top retailers. Investors have generally been feeling more confident that Federal Reserve rate cuts will happen this year in part thanks to April jobs data earlier this month that showed a substantial slowdown in...

Commentary Forward guidance from chipmakers and others in the tech sector have not been as “dazzling” as many were hoping. Remember, even though expectations were very high for tech companies, many on Wall Street were still looking for big beats across the board. In other words, the AI hype may have gotten a little ahead of itself and investors...

Commentary Stock indexes are mixed with investors seeming to be losing interest in high-flying tech stocks and rotating more money into overlooked stocks that have lagged the broader indexes. That’s helped the Dow notch six winning trading sessions in a row now, something it hasn’t done since December. The dimmed excitement for tech stocks is...