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The CML Close - Stocks rise on dropping commodity prices and weak economic data - 06-24-2022

Date Published:

Stocks rose on poor sentiment and falling commodity prices which may lead to a less aggressive Fed and faster disinflation.

SPX 3,911.74 +116.01 (+3.06%)
NASD 11,607.62 +375.43 (+3.34%)
DJIA 31,500.68 +823.32 (+2.68%)
R2K 1,765.74 +54.06 (+3.16%)
VIX 27.23 -1.82 (-6.27%)
Oil 107.06 +2.79 (+2.68%)

• The University of Michigan consumer sentiment was downwardly revised to a record low.

• Weekly North American fertilizer index is dropping and concerns that fertilizer supplies from Russia would be completely shut off haven’t panned out.

• Cotton futures prices have been in free fall.

• Economist says housing correction is coming.

Headlines of the Day
Stocks Rally as Fears Over Aggressive Rate Hikes Ease
The stock market extended its recent rally on Friday, as fears over the Federal Reserve’s aggressive interest rate hiking plan are easing. Economic data certainly isn’t disrupting that narrative.

The prospect of a fertilizer shortage that threw farmers and crop markets into disarray and pushed up food costs globally may be over
Meanwhile, concerns that fertilizer supplies from Russia would be completely shut off haven’t panned out.

Stock Funds See Exodus as Recession Fears Grip Investors
Equity funds see $16.8b outflows while $23.5b exits bonds. Capitulation this year has been in bonds, not stocks: Hartnett.

Global Commodity Shock Enters Next Phase With Recession Test
Skyrocketing prices pose challenge for consumers, governments. Shockwaves from Russia’s war still shaking raw materials.

‘Coast to Coast’ Housing Correction Is Coming, Says Moody’s Chief Economist
US home prices will likely fall in the most overvalued markets, projects Mark Zandi. But it will fall short of a crash.

Economic Data Results for 6-24-2022
United States Michigan Consumer Sentiment
The University of Michigan consumer sentiment was downwardly revised to a record low of 50.0 in June of 2022, from a preliminary reading of 50.2.

United States Michigan 5-Year Inflation Expectations
Michigan 5 Year Inflation Expectations in the United States increased to 3.10 percent in June from 3 percent in May of 2022.

United States Michigan Current Economic Conditions
The University of Michigan Current Economic Conditions subindex in the United States decreased to an all-time low of 53.80 points in June from 63.30 points in May of 2022, a final reading showed.

New Home Sales
New home sales in the United States rose 10.7% from a month earlier to a seasonally adjusted annual rate of 696,000 in May of 2022, above market expectations of 588,000.

Economic Data Due Monday on 6-27-2022
Pending Home Sales MoM

Durable Goods Orders

United States Dallas Fed Manufacturing Index



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