CPI On Schedule, U.S. Stocks Open Higher
Shain Vernier • 1 min read
During the U.S. premarket hours, CPI for June hit the newswires. The report came in as expected, adding to concerns over lagging inflation. In many ways today’s numbers are positive. However, without any significant gains in this area, the case for a July rate cut got a little bit stronger.
At press time, FED Chair Jerome Powell is in front of Congress for day two of his semiannual testimony; perhaps he will mention CPI and revisit the topic of lagging inflation. Here is a quick look at this morning’s key numbers:
Event Actual Projected Previous
Consumer Price Index (YoY, June) 1.6% 1.6% 1.8%
Consumer Price Index except Food & Energy (YoY, June) 2.1% 2.0% 2.0%
DOW Hits 27,000 Following U.S. CPI Report
The year-long uptrend for U.S. stocks is in full swing. Following a modest retracement last Friday through Monday, September E-mini DOW futures are back in the green and challenging all-time highs.
Here are two levels to watch for the remainder of the session:
- Resistance(1): Swing High, 27009
- Support(1): 62% Current Wave Retracement, 26660
Overview: It looks as though U.S. stock traders are optimistic about the future and relaxed FED policy. Projections for an economic slowdown do not seem to be deterring bidders. At this point, a breakout above 27000 appears to be in the cards for the DOW and the “Trump Rally” in U.S. equities is poised to continue.