U.S. inflation spreads through economy at 5.4% its biggest rise since 2008

Inflation

Secondhand vehicle purchases, car, van and truck rental, food, energy, clothing, travel (plane) tickets and hotels rose sharply in June 2021 The cost of living climbed by the largest amount since 2008 as inflation spreads more broadly through the U.S. economy. Transitory inflation? Fresh questions about whether the spike in prices will subside as quickly as the Federal Reserve predicts are back in focus again. Some analysts are now saying that not only is the U.S. economy hot – it is white hot! Price jump For the 12 month period,…

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Dow touches 35000 as big earnings data due

Stock markets up

New Dow record just short of 35000 Dow Jones Industrial Average on Monday closed just shy of 35000 after gaining 126 on the day. Earnings report Second quarter earnings season kicks off this week with earnings from two big banks, along with some other companies. Pepsi co. came up with earning beat. Banks are expected to release stellar results too. Inflation The market will also be watching a key inflation report due today at 13:30 (BST) with the release of June’s Consumer Price Index (CPI). CPI is expected to increase…

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Dow S&P 500 & Nasdaq reach new records… again!

U.S. stock records

After a weird week for U.S. stocks – the Dow, S&P 500 and Nasdaq yet again notch new records on Friday after losing ground during the week Inflation and growth Do you believe stalling economic growth is a bigger threat than inflation? Right now I have less of an idea that at the beginning of the week. What is going on? Fears of runaway inflation have been swapped for worries about a rapid slowdown in global economic growth. As I see it there are three obvious elements in the shift…

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Major U.S. stocks fell Thursday on concerns of global economic recovery

Stock market red

Major U.S. stock indexes fell Thursday on concerns of a slowing global economic comeback from the pandemic. The losses came as countries grappled with a fresh virus cases due to Covid variants. Japan declared a state of emergency in Tokyo and said the games will be spectator free. Indices drop The Dow Jones Industrial Average dropped 260 points. The S&P 500 closed down at 4321 and the Nasdaq closed down at: 14559 – coming off recent record highs. The Dow in intra-day trading was down by as much as 535 points. Some…

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S&P 500 & Nasdaq notch up fresh records with Big Tech in favour

Record highs

All time records set again The S&P 500 rose to an all time high of: 4358 The Nasdaq closed at an all time high of: 14664 Big tech stocks do the heavy lifting Popular technology and internet stocks once again outperformed the market on Wednesday 7th July 2021. Investors bought growth stocks instead of the reopening sectors that were in favour last month and proved popular in the first half of the year. Apple, Microsoft and Amazon were all up on Wednesday each reaching double digits gains over the last…

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The Fed’s reverse repo system sees demand climb overnight

Federal Reserve

Repo overnight demand increases Overnight demand for the Federal Reserve’s reverse repo program surged close to $1 trillion on Wednesday 30th June 2021. Is this a problem? The repo system is an overnight money holding facility for banks and financial institutions. A short term parking system for billions of U.S. dollars. The facility had been met with growing demand since April, as businesses look for ways to temporarily invest excess cash as trillions of fiscal and monetary stimulus continue to slosh through the economy. The Fed The Fed is keen to reduce…

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Is there a hidden fear lurking behind the scenes in the U.S. stock market?

Recovery

Despite S&P 500 and Nasdaq record highs – is there a worry the market is due a correction? Looking at the recent records for the S&P 500 and Nasdaq you’d think all is good. Inflation fears have eased, economic indicators are strengthening and the Federal Reserve remains extremely supportive. But if you look past the market cream topping you’ll likely find a growing sense of concern. The market is very frothy, in my opinion. Risk off? Investors are taking risk off the table as a new coronavirus variant causes fresh outbreaks in…

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China’s official manufacturing PMI dropped in June

China stocks

Official PMI data shows dip in reading An official report released 30th June 2021 of China’s factory activity is reported to have recorded a slight drop, as a shortage in computer chips and power problems slowed production. China’s official manufacturing purchasing managers index (PMI) – fell to 50.9 from 51.0 in May, according to the National Bureau of Statistics. The reading was higher than the 50.7 average forecast expected by analysts and remained above 50, which as we know separates expansion from contraction. Index The index measuring production declined to…

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S&P 500 & Nasdaq eke out new all time highs

Bear Bull

The S&P 500 and the Nasdaq moved into uncharted waters at close of business yesterday, 29th June 2021 both claiming new records New all time highs reached! The Nasdaq closed at an all time record high of: 14528 The S&P 500 closed at an all time high of: 4292 But are investors finally turning bearish on the S&P 500? Now that we have completed the first half of the year notching stellar U.S. stock gains – how likely is it that the S&P 500 will continue to charge to new…

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S&P 500 and Nasdaq up to new record highs again

U.S. stocks bull run

Investors appear less worried by inflation and interest rates… for the moment S&P 500 & Nasdaq set new record highs The S&P 500 rose on Friday and again Monday building on its rally to reach record highs, as investors ‘bet’ that higher inflation will be temporary as the economy continues to recover from the pandemic. Successful U.S. bank stress tests helped sentiment as dividends and share buy backs returned. The S&P 500 climbed 0.3% to hit another closing record high of 4,281 and again on Monday to a new high…

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