Price Pullback in US (Bill McColl) - 趙永祥的數位歷程檔

U.S. equity markets are soaring after the Labor Department reported consumer prices rose less than expected in July (more below). The Dow is up more than 1.5%, and the S&P 500 and Nasdaq are both 2% higher.

Bond yields fell as the inflation report fueled speculation the Federal Reserve could ease back on its aggressive rate hike policy. That is boosting shares of tech companies, which benefit from lower borrowing costs. All the FAAMG stocks are up, with shares of Meta Platforms (META) jumping 5%. Salesforce (CRM) and Cisco Systems (CSCO) shares are advancing. Shares of semiconductor companies, which have been beaten down this week, are higher. Tesla (TSLA) shares are rising after CEO Elon Musk sold $6.9 billion in shares, but said he wasn’t planning to give up any more.

Shares of Cruise Lines Up

The three big cruise operators, Norwegian Cruise Line Holdings (NCLH), Carnival Corporation (CCL), and Royal Caribbean Cruises (RCL), are the best-performing stocks in the S&P 500 after shares tumbled yesterday. Shares of banks and credit card providers are posting solid gains.

Shares of fossil fuel providers are falling along with the price of oil. The U.S. dollar is down against the euro, pound, and yen.

Cryptocurrency bulls are also benefiting from the inflation news, with prices for Bitcoin and other major digital coins moving higher.

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2/ CHART OF THE DAY

Price Pullback

Retail inflation rose less than expected in July as the price of gasoline tumbled, offsetting increases in the costs of food and shelter.

The Labor Department’s Consumer Price Index (CPI) was up 8.5% on an annual basis last month, down from a more than four-decade high of 9.1% in June. Economists had been anticipating a gain of 8.7%. On a monthly basis, the CPI was unchanged.

The “core” CPI, which excludes volatile food and energy prices, advanced 5.9% from 2021, the same as June's rate and also below estimates. For the month, the rise was 0.3%.

Prices at the Pump

Gasoline prices slumped 7.7% from last month, and overall energy prices were down 4.6%. Price declines were also seen in transportation services, used cars and trucks, and apparel.

Prices for food gained 1.1%, and were up 10.9% year-over-year, the largest 12-month advance since May 1979. Food at home costs rose 1.3% last month and 13.1% over the past year, the largest 12-month jump since March 1979.

Prices for shelter, which make up about one-third of the CPI, were 0.5% higher.