The CML Close - The CML Close - Stocks mixed, Dimon warns, Fed is slightly optimistic, jobless claims rise - 07-14-2022
Markets
Stocks were mostly down, while NASADQ eeked out a small gain. JP Morgan released poor earnings and Jamie Dimon offered a stark warning.
Housing supply has increased, producer prices are rising, and Fed says that inflation may be getting better.
| • SPX | 3,790.38 | -11.40 | (-.30%) |
| • NASD | 11,251.19 | +3.60 | (+0.03%) |
| • DJIA | 30,630.17 | -142.62 | (-0.46%) |
| • R2K | 1,707.51 | -18.53 | (-1.07%) |
| • VIX | 26.40 | -0.42 | (-1.57%) |
| • Oil | 96.21 | +0.43 | (+0.45%) |
• Fed's Beige Book was slightly optimistic with respect to inflation.
• Jamie Dimon warns of geopolitical risks.
• Jobless claims are climbing, both continuing and initial.
Headlines of the Day
The Dow Dropped, JPMorgan Slumped
The stock market ended mixed Thursday after dismal earnings from JPMorgan Chase increased concerns about the economy.
JPMorgan Stock Tumbles After Lender Halts Buybacks and Posts Earnings Miss
Bank earnings season got off to a rocky start Thursday after JPMorgan Chase second-quarter results fell short of what Wall Street expected. Making matters worse, the lender said it was temporarily halting share repurchases.
Supply of US Homes for Sale Rises for First Time in Three Years
Higher mortgage rates have kept more buyers on the sidelines and helped ease a shortage of inventory that has helped fuel bidding wars in recent years.
Fed Report Says Inflation ‘Substantial’ But Signs of Moderating
Beige Book shows growing signs of slowdown, recession worries. Most areas see some improvement in availability of labor.
JPMorgan CEO Dimon sums up U.S. economy in one paragraph — and it sounds bad
Geopolitical tension, high inflation, waning consumer confidence, the uncertainty about how high rates have to go and the never-before-seen quantitative tightening and their effects on global liquidity ... are very likely to have negative consequences on the global economy sometime down the road.
Economic Data Results for 7-13-2022
United States Producer Prices Change
Annual producer inflation in the US accelerated to 11.3% in June of 2022, the largest increase since a record 11.6% in March. Figures came above 10.9% in May and forecasts of 10.7%.
United States Producer Prices Final Demand Less Foods and Energy YoY
The producer price index for final demand less foods and energy in the United States rose by 8.2 percent from a year earlier in June of 2022, easing from a 8.3 percent increase in the prior month and slightly above market expectations of an 8.1 percent rise.
United States Jobless Claims 4-week Average
The 4-week moving average of US jobless claims, which removes week-to-week volatility, was 235,750 in the week ended July 9th, an increase of 3,250 from the previous week's unrevised average of 232,500. It is the highest reading since the week ended December 4th.
United States Initial Jobless Claims
The number of Americans filing new claims for unemployment benefits increased by 9 thousand to 244 thousand the week that ended July 9th, the highest since November 2021.
Economic Data Due Tomorrow on 7-14-2022
US Retail Sales MoM JUN
Industrial Production MoM JUN
Manufacturing Production MoM JUN
Michigan Inflation Expectations Prel JUL
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