The CML Close - Markets rise, all eyes on inflation, Chip shortage eases ahead of schedule and China is open
Markets
All eyes are on the May CPI inflation index reading due out this Friday.
China's lockdowns appear to be ending and the chip shortage for automobiles appears to be easing and ahead of even the most optimistic hopes of a second half 2022 return to normalcy.
| • SPX | 4,121.43 | +12.89 | (+0.31%) |
| • NASD | 12,061.37 | +48.64 | (+0.40%) |
| • DJIA | 32,915.78 | +16.08 | (+0.05) |
| • R2K | 1,889.89 | +6.83 | (+0.36%) |
| • VIX | 25.07 | +0.28 | (+1.13%) |
| • Oil | 118.92 | +0.42 | (+0.35%) |
• Earnings risk in the next cycle, starting in mid to late July could be the driver of the next down leg in the market according to Morgan Stanley.
• Several auto makers are saying the chip crisis is easing well ahead of the second half of the year hope.
• China is opening up after COVID lockdowns.
Headlines of the Day
Morgan Stanley Sees Earnings Risks Weighing on Stocks
Companies slow to guide down in the absence of recession. Strategist says bear market may end in next earnings season.
Carmakers Feel Chip Crisis Easing as Global Growth Slows
Mercedes, Daimler Truck, BMW, VW say plants running as normal. Tentative improvement comes months ahead of predictions.
Beijing, Shanghai Reopening Speed Up
Infections are trending down nationwide, thanks to the ebbing outbreaks in Shanghai and Beijing. Of China’s top 50 cities by economic size, none currently have widespread restrictions in place.
Why Peak Inflation Is Near, According to Experts Who Bet on Short-Lived Price Rises
With inflation now exceeding 8% in the euro area, and expected to stay above that level in the US when May data comes out on Friday, here’s a roundup of some of the main arguments laid out by Team Transitory 2.0.
US Recession Odds Within the Next Year Now 30%, Survey Shows
The probability of a recession over the next 12 months is now 30%, the highest since 2020, according to the latest Bloomberg monthly survey of economists.
Economic Data Due Tomorrow on 6-7-2022
Redbook YoY
Consumer Credit Change APR
LMI Logistics Managers Index
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