The spread between US CPI and PPI is a good omen for corporate profit margins
The spread between US CPI and PPI is a good omen for corporate profit margins. This is key to widening profit margins. Companies are able to boost the prices they charge consumers more and more relative to their input cost. The spread between y/y CPI and PPI remains at the widest levels since the current incarnation of PPI started in 2011. Source: Bespoke, Lisa Abramowicz
The sp500 has been anticipating the improvement in earnings (ex-Energy) expectations so far. Can these expectations be met?
Source: Bloomberg (Gina Martin Adams for the #chart)
The sp500 is now 3% above the level it was at when The Fed first hiked #rates in March 2022...
The #sp500 is now 3% above the level it was at when The #Fed first hiked #rates in March 2022...
U.S. federal judge’s ruling that XRP—the token powering the Ripple network—is not a security in certain contexts
Following a U.S. federal judge’s ruling that #XRP—the #token powering the #Ripple network—is not a security in certain contexts, a sea of green has emerged across popular #altcoins, with top coins up double-digit percentages over the past 24 hours. XRP itself is up a colossal 62% as of writing upon the news–which has seen an uproar from the self-proclaimed “XRP army” all throughout Twitter—trading above $0.76, according to data from CoinGecko. Select other altcoins, some of which were previously deemed securities by the U.S. Securities and Exchange Commission (SEC), have also benefited from the rising tide. Solana (SOL) has roared upwards with a 17% gain on the day, marking a sizable 32% increase on the week, changing hands at around $26, according to CoinGecko. Source: Decrypt
More disinflation in the offing: US PPI slowed to 0.1% YoY in June, from 0.9% in May and lower than expected
More disinflation in the offing: US PPI slowed to 0.1% YoY in June, from 0.9% in May and lower than expected. This is smallest pace since Aug 2020 and is down from the all-time high of 11.7% YoY from March 2022 in a promising sign for CPI. Source: Bloomberg, HolgerZ
The S&P 500 is now 3% higher than where it was when the Fed started hiking rates in March 2022. $SPX
Source: Charlie Bilello
The easy part is over for disinflation as disinflationary base effects are behind us
The easy part is over for disinflation as disinflationary base effects are behind us. The MoM CPI now needs to be lower than 0.2% for #inflation to continue moving lower. Source: BofA
The Bloomberg Dollar Spot Index slumped to a 15-month low, with the gauge now down over 11% from a September peak
The Bloomberg Dollar Spot Index slumped to a 15-month low, with the gauge now down over 11% from a September peak. hedgefunds had been bracing for weakness, as they turned net sellers of the dollar for the first time since March, according to data from the Commodity Futures Trading Commission aggregated by Bloomberg. The dollar’s resilience has confounded bears who had warned that the currency was headed for a multi-year decline following a surge in 2022. But there’s a growing conviction that they may finally be proven right as easing inflation backs the case for the us central bank to wrap up its rate-hike campaign in the coming months. Source: Bloomberg
