{"id":69430,"date":"2023-07-12T09:02:32","date_gmt":"2023-07-12T13:02:32","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=69430"},"modified":"2023-07-12T09:02:32","modified_gmt":"2023-07-12T13:02:32","slug":"coffee-with-greta-inflation-rally","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/07\/12\/coffee-with-greta-inflation-rally\/","title":{"rendered":"Coffee With Greta: Inflation Rally"},"content":{"rendered":"

Register now<\/a> for today's free pro trader Q&A on LinkedIn!<\/b><\/p>\n

DJIA Futures: <\/b>+195 (+0.6%)<\/span><\/p>\n

SPX Futures: <\/b>+32 (+0.7%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+141 (+0.9%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are popping higher after the release of positive new inflation data.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Inflation Cooler Than Expected<\/span><\/h2>\n

U.S. inflation pressures were cooler than expected in June.\u00a0<\/span><\/p>\n

The Bureau of Labor Statistics\u2019 consumer price index rose 0.2% monthly and 3% year over year.\u00a0<\/span><\/p>\n

That was better than expectations for +0.3% monthly and +3.1% annually.\u00a0<\/span><\/p>\n

It was the lowest annual rate since March 2021.<\/span><\/p>\n

Grocery prices were up 4.7% from a year ago while gas prices were down 26.5%.\u00a0<\/span><\/p>\n

The core CPI, which excludes food and energy prices, rose 0.2% monthly and 4.8% year over year.\u00a0<\/span><\/p>\n

That was also better than +0.3% monthly and +5% annually expected.\u00a0<\/span><\/p>\n

That core rate of inflation is the lowest level since August 2021.<\/span><\/p>\n

Treasury Yields Tumble On Cool CPI<\/span><\/h2>\n

Treasury yields are dropping this morning after the release of that better-than-expected CPI data.\u00a0<\/span><\/p>\n

The 2-year yield is down 10 basis points to 4.78% while the 10-year yield is down six basis points to 3.92%.<\/span><\/p>\n

The market is still pricing in a rate hike at the Fed\u2019s meeting in 2 weeks.\u00a0<\/span><\/p>\n

CME Group\u2019s FedWatch Tool shows 89.9% of traders expecting a 25bps hike.\u00a0<\/span><\/p>\n

But that is expected to be the bank\u2019s final move with Fed futures predicting rates will remain in a range of 5.25%-5.5% until the end of the year.<\/span><\/p>\n

Domino\u2019s Jumps On Uber Partnership<\/span><\/h2>\n

Domino\u2019s Pizza <\/b>(DPZ) shares are rallying 12.5% ahead of the open after announcing a new delivery partnership with <\/span>Uber <\/b>(UBER).\u00a0<\/span><\/p>\n

UBER shares are also up 1.7%.\u00a0<\/span><\/p>\n

The agreement allows U.S. customers to orders Domino\u2019s products through the Uber Eats and Postmates apps while <\/span>Domino\u2019s and its franchisees will then handle the delivery.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • Activision Blizzard <\/b>(ATVI) shares jumped 10% on Tuesday after a federal judge denied the FTC\u2019s motion for a preliminary injunction against <\/span>Microsoft<\/b>\u2019s (MSFT) acquisition of the video game company. The ruling puts the deal one step closer to going through but the FTC can appeal. The companies also must resolve opposition from the Competition and Markets Authority in the U.K. Microsoft said it will work with U.K. regulators to modify the deal. MSFT shares rose 0.2% on Tuesday.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    Register now for today’s free pro trader Q&A on LinkedIn! DJIA Futures: +195 (+0.6%) SPX Futures: +32 (+0.7%) NASDAQ Futures: +141 (+0.9%) Good morning friends! Futures are popping higher after the release of positive new inflation data. Let\u2019s get right to it! Inflation Cooler Than Expected U.S. inflation pressures were cooler than expected in June.\u00a0 The Bureau of Labor Statistics\u2019 consumer price index rose 0.2% monthly and 3% year over year.\u00a0 That was better than expectations for +0.3% monthly and +3.1% annually.\u00a0 It was the lowest annual rate since March 2021. Grocery prices were up 4.7% from a year ago while gas prices were down 26.5%.\u00a0 The core CPI, which excludes food and energy prices, rose 0.2% monthly and 4.8% year over year.\u00a0 That was also better than +0.3% monthly and +5% annually expected.\u00a0 That core rate of inflation is the lowest level since August 2021. Treasury Yields Tumble On Cool CPI Treasury yields are dropping this morning after the release of that better-than-expected CPI data.\u00a0 The 2-year yield is down 10 basis points to 4.78% while the 10-year yield is down six basis points to 3.92%. The market is still pricing in a rate hike at the Fed\u2019s meeting in 2 weeks.\u00a0 CME Group\u2019s FedWatch Tool shows 89.9% of traders expecting a 25bps hike.\u00a0 But that is expected to be the bank\u2019s final move with Fed futures predicting rates will remain in a range of 5.25%-5.5% until the end of the year. Domino\u2019s Jumps On Uber Partnership Domino\u2019s Pizza (DPZ) shares are rallying 12.5% ahead of the open after announcing a new delivery partnership with Uber (UBER).\u00a0 UBER shares are also up 1.7%.\u00a0 The agreement allows U.S. customers to orders Domino\u2019s products through the Uber Eats and Postmates apps while Domino\u2019s and its franchisees will then handle the delivery. In Case You Missed It Activision Blizzard (ATVI) shares jumped 10% on Tuesday after a federal judge denied the FTC\u2019s motion for a preliminary injunction against Microsoft\u2019s (MSFT) acquisition of the video game company. The ruling puts the deal one step closer to going through but the FTC can appeal. The companies also must resolve opposition from the Competition and Markets Authority in the U.K. Microsoft said it will work with U.K. regulators to modify the deal. MSFT shares rose 0.2% on Tuesday.<\/p>\n","protected":false},"author":41,"featured_media":69451,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-69430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=69430"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69430\/revisions"}],"predecessor-version":[{"id":69454,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69430\/revisions\/69454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/69451"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=69430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=69430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=69430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}