EconCurrents

Summary Of the Markets Today:

• The Dow closed down 27 points or 0.08%,
• Nasdaq closed down 0.58%,
• S&P 500 down 0.07%,
• WTI crude oil settled at $94 up 2.25%,
• USD $104.82 down 1.39%,
• Gold $1801 down 0.68%,
• Bitcoin $24,211 up 2.34% – Session Low 23,656,
• 10-year U.S. Treasury 2.893% up 1.12%

Today’s Economic Releases:

In the week ending August 6, the advance figure for seasonally adjusted initial claims grew 14,000 from the previous week’s revised level, and the 4 week moving average increased 4,500 from the previous week’s revised average.

The Producer Price Index final demand prices moved up 9.8 percent for the 12 months ended in July 2022. Producer prices are a measure of inflation from the perspective of producers whilst the Consumer Price Index measures inflation from the standpoint of consumers. The bottom line is both the CPI and PPI moderated in July – and going forward, the year-over-year growth will be measured against a period where inflation was growing. Therefore, it is easy to speculate that inflation will continue to moderate.

A summary of headlines we are reading today:

• Shell Halts Oil Output At Three Gulf Of Mexico Platforms
• Disney is raising prices, but this time, don’t blame inflation
• U.S. Postal Service to temporarily hike prices for the holiday season
• Justice Department seeks to unseal Trump raid search warrant, Attorney General Garland says
• Ethereum Soars To 2-Month High As Critical Test Passed, Merge Set For Sept 15
• The US Labor Market Is A House Of Cards – Here Are The Reasons Why
• Semiconductor companies have split into two groups — the resilient and the risky
• Bond Report: Ten-year Treasury yield rises to the highest level in three weeks despite signs of cooler inflation

These and other headlines and news summaries moving the markets today are included below.

Summary Of the Markets Today:

• The Dow closed up 535 points or 1.63%,
• Nasdaq closed up 2.89%,
• S&P 500 up 2.13%,
• WTI crude oil settled at $91 up 0.998%,
• USD $104.82 down 1.39%,
• Gold $1806 down 0.34%,
• Bitcoin $23,674 up 2.49% – Session Low 22,750,
• 10-year U.S. Treasury 2.786% down 0.11%

Today’s Economic Releases:

The Consumer Price Index for All Urban Consumers (CPI-U) increased 8.5 percent year-over-year before seasonal adjustment – in June 2022 the index had increased 9.0 percent year-over-year. Over the gasoline component of the index moderated whilst food and shelter increased. Depending on how one spends their money, this 8.5 percent increase may be significantly higher. Although inflation did modestly moderate in July, it is still significant and likely puts on the table another 75 basis point increase in the federal funds rate during the September 20/21 Fed meeting.

June 2022 sales of merchant wholesalers, up 1.8 percent month-over-month and 20.4 percent year-over-year. Inventories of merchant wholesalers were up 1.8 percent month-over-month and up 25.5 percent year-over-year. The June inventories/sales ratio for merchant wholesalers, except manufacturers’ sales branches and offices, based on seasonally adjusted data, was 1.26. The June 2021 ratio was 1.21. Generally, the sales-to-inventory ratios spike during a recession.

The number of CEO changes at U.S. companies plunged to 58 in July, down 45% from the 106 CEO exits recorded in June. It is the lowest monthly total since April 2020, when the uncertainty and economic turmoil caused by the pandemic led to 48 CEO exits in that month. Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc. stated:

The economy is facing uncertainty right now, but it’s much more positive than in early 2020. Inflation fell in July, gas prices are falling steadily, the job market remains tight, and supply chain issues have mostly cleared up. Consumers lack confidence at the moment and interest rates are rising to battle inflation, which might slow business borrowing and some growth plans.

The U.S. Treasury’s Monthly Treasury Statement shows the fiscal-year-to-date deficit is $726 billion, a record year-over-year decrease of $1.814 trillion (71%), for the first ten months of the fiscal year. Fiscal-year-to-date Receipts were $787 billion (24%) higher, while Outlays were lower by $1.027 trillion (18%). July has been a deficit month 66 times out of 68 fiscal years since there are usually no major corporate or individual tax due dates in this month.

 

A summary of headlines we are reading today:

• Is U.S. Inflation Actually Cooling Quicker Than Expected?
• Chip Shortages And Inflation Are Plaguing The Auto Industry
• How the EV tax credits in Democrats’ climate bill could hurt electric vehicle sales
• Business travel costs are expected to rise through 2023, industry report says
• Russian Spy Planes Enter Alaska Air Defense Zone In 1st Since Ukraine War: NORAD
• Key Words: No shrinkflation at Kellogg, CEO says. ‘If we make it smaller, we also make it cheaper’
• Bond Report: 2-year Treasury yield slides by most in almost a week after U.S. inflation data bring downside surprises

These and other headlines and news summaries moving the markets today are included below.

Summary Of the Markets Today:

• The Dow closed down 58 points or 0.18%,
• Nasdaq closed down 1.19%,
• S&P 500 down 0.42%,
• WTI crude oil settled at 91 down 0.2%,
• USD $106.36 down 0.01%,
• Gold 1811 up 0.33%,
• Bitcoin $23,123 down 3.51% – Session Low 22,940,
• 10-year U.S. Treasury 2.781 up 0.18%

Today’s Economic Releases:

NFIB’s Small Business Optimism Index rose 0.4 points in July to 89.9, however, it is the sixth consecutive month below the 48-year average of 98. Thirty-seven percent of small business owners reported that inflation was their single most important problem in operating their business, an increase of three points from June and the highest level since the fourth quarter of 1979. Bill Dunkelberg, NFIB Chief Economist stated:

The uncertainty in the small business sector is climbing again as owners continue to manage historic inflation, labor shortages, and supply chain disruptions. As we move into the second half of 2022, owners will continue to manage their businesses into a very uncertain future.

Nonfarm business sector labor productivity decreased 4.6 percent in the second quarter of 2022. From the same quarter a year ago, nonfarm business sector labor productivity decreased 2.5 percent, reflecting a 1.5-percent increase in output and a 4.1-percent increase in hours worked. The 2.5-percent decline in labor productivity from the same quarter a year ago is the largest decline in this series, which begins in the first quarter of 1948. Unit labor costs in the nonfarm business sector increased 10.8 percent in the second quarter of 2022, This is the largest four-quarter increase in this measure since a 10.6-percent increase in the first quarter of 1982.

In May 2022, 2.7% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 2-percentage point decrease in the overall delinquency rate compared with May 2021.

A summary of headlines we are reading today:

• EIA Lowers U.S. Oil Production Forecast
• An Iran Nuclear Deal Could Send Oil Prices Tumbling Towards $80
• Germany May Consider Lifting Its Ban On Fracking Amid Energy Crisis
• Copper Prices Slide Sideways As Bulls And Bears Battle It Out
• Northrop Grumman moves Antares rocket work to U.S. from Russia and Ukraine with Firefly partnership
• Inflation Reduction Act extends ‘pass-through’ tax break limits for 2 more years. Here’s what that means for entrepreneurs
• With 87,000 new agents, here’s who the IRS may target for audits

These and other headlines and news summaries moving the markets today are included below.

Summary Of the Markets Today:

• The Dow closed up 29 points or 0.09%,
• Nasdaq closed down 0.1%,
• S&P 500 down 0.12%,
• WTI crude oil at $90.30 up $1.28%,
• USD $106.38 down 0.23%,
• Gold $1805 up 0.78%,
• Bitcoin $23,961 up 3.4%,
• 10-year U.S. Treasury 2.75% unchanged

Today’s Economic Releases:

The July 2022 Survey of Consumer Expectations shows substantial declines in short-, medium- and longer-term inflation expectations. Expectations about year-ahead price increases for gas and food fell sharply. Home price growth expectations and year-ahead spending growth expectations continued to pull back from recent series highs. Households’ income growth expectations improved.

The federal budget deficit was $727 billion in the first 10 months of fiscal year 2022, CBO estimates—$1.8 trillion less than it was at the same point last year.

A summary of headlines we are reading today:

• Analyst: Oil To Hit $120 Again By Winter
• China Extends Taiwan Drills, Says It Is Training Under Real War Conditions
• UN Calls For Inspection Of Shelled Ukrainian Nuclear Plant
• Consumer confidence in the housing market hits the lowest point in over a decade
• Boeing Dreamliner deliveries to resume in the ‘coming days,’ FAA says
• More Americans are working part-time — a potential harbinger of future jobs market instability
• “Looks Like A Battlefield”: Third Fuel Tank At Major Cuban Storage Facility Ignites

These and other headlines and news summaries moving the markets today are included below.