“Markets are looking for something around 0.4% for CPI, which is pretty much the same level that we were at last quarter.” – 02:10
Remy Blaire welcomes Michael Reinking, Senior Market Strategist at the NYSE, to discuss the current state of the U.S. stock market and the broader economic landscape. As the trading week begins, U.S. stock futures remain flat, yet Wall Street has experienced a rally. This comes after a challenging month for global markets, characterized by trade uncertainties between the U.S. and China and ongoing concerns regarding regional banks.
Remy and Michael delve into the significance of the upcoming earnings reports, particularly in light of the government shutdown that limits the release of economic data. Michael emphasizes that the focus is shifting towards corporate earnings, which not only reflect the performance of corporate America but also provide insights into the macroeconomic environment. He notes that early reports from the industrial sector have been largely positive, with companies like GM and Cleveland Cliffs indicating a potential turnaround in the automotive sector.
As they look ahead to the end of the week, the conversation turns to the anticipated release of the Consumer Price Index (CPI) figures, which are crucial ahead of the Federal Reserve’s decision on interest rates next week. Michael shares that the market is expecting a CPI increase of around 0.4%, similar to previous months. He believes that unless the CPI figures are significantly higher than expected, the Fed is likely to continue its path of rate cuts.
The discussion also covers the current volatility in the markets, particularly concerning crypto and gold. Michael highlights the recent fluctuations in Bitcoin, which has struggled to maintain key technical levels, and the implications this has for the broader market. He points out that the S&P 500 is nearing its all-time closing high, but warns that a drop below certain support levels could lead to increased market dynamics.