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The CML Close - Stocks drop, inflation expectations drop, e-commerce prices drop, housing inventory rises - 08-09-2022




Date Published:


Markets
Stocks dropped but consumer expectations for inflation dropped too, in a welcomed sign for the Fed.

Home inventory rose at a record pace and e-commerce prices dropped for the first time in more than 2-years.

SPX 4,122.47 -17.59 (-0.42%)
NASD 12,493.93 -150.53 (-1.19%)
DJIA 32,774.41 -58.13 (-0.18%)
R2K 1,908.53 -32.67 (-1.68%)
VIX 21.84 +0.55 (+2.58%)
Oil 90.64 -0.12 (-0.13%)

• CPI and Core CPI readings are due tomorrow morning.

• Consumer expectations for inflation in the next year and three-years fell below prior readinfs and estimates; a welcomed sign for the Fed.

• Home inventory rose at a record pace.

• Food inflation is easing.

• E-commerce prices dropped after 25-consecutive quarters of rises. 

Headlines of the Day
Nasdaq falls for third straight day as chip stocks weigh on market
Stocks fell on Tuesday as investors navigated a batch of disappointing company reports ahead of a key inflation reading.

Home Inventory Soars at Record Rate With US Buyers Pulling Back
The slowdown in demand means more properties are being left on the market. That should give buyers some negotiating power, Realtor.com economist says.

Good inflation news: Online shopping prices are suddenly falling fast
E-commerce prices began rising in June 2020, beginning an unprecedented stretch of 25 consecutive months of increases that underscored the severe price pressures hitting the US economy. That streak has finally ended.

Food Inflation Eases, But Problematic Crops Prevent Wider Relief
Worries about harvests and future supply start to emerge. Floods, droughts and high temperatures are reducing crops.

Consumers expect inflation to slow down, a big win for the Fed
A New York Fed survey showed that respondents in July expected inflation to run at a 6.2% pace over the next year and a 3.2% rate for the next three years. That marks a big drop-off from the respective 6.8% and 3.6% results from the June survey.

Economic Data Results for 8-9-2022
NFIB Business Optimism Index JUL
The NFIB Small Business Optimism Index in the United States edged higher to 89.9 in July of 2022 but still remained close to a 9-1/2-year low of 89.5 hit in June, pointing to a subdued level of confidence, well below the historical average of 98.

United States Consumer Inflation Expectations
US consumer inflation expectations for the year ahead fell to 6.2% in July of 2022, the lowest reading in five months, from a record high of 6.8% in June.

United States IBD/TIPP Economic Optimism Index
The IBD/TIPP Economic Optimism Index in the US edged lower to 38.1 in August of 2022 from 38.5 in July, and matching June's reading for the lowest since August 2011.

United States Nonfarm Labour Productivity
Non-farm labor productivity in the US fell an annualized 4.6 percent in the second quarter of 2022, slightly below market expectations of a 4.7 percent drop and easing from the downwardly revised 7.3 percent decline in the previous period.

Economic Data Due Tomorrow on 8-10-2022
CPI JUL

Core Inflation Rate YoY JUL

Wholesale Inventories MoM JUN

MBA Mortgage Applications 05/AUG


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