INTRADAY ALERT: May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end

INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end
INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end
INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end
INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end

May Core CPI released this am and it was a huge downside reading at +0.16% mom versus +0.28% consensus

  • The driver of the downside read was several but the most important was auto insurance
  • This was adding +0.06% to core last month and was zero this month (+0.0%)
  • Huge difference and a major positive as this is a sign that auto insurance surge is peaking.
  • We have stated previously that CPI is being held up by housing and auto insurance and now 1 of the 2 is breaking
  • FOMC rate decision this afternoon
  • Expectations for Fed cuts is higher now and stands at 2.0 vs 1.5 cuts earlier this week

BOTTOM LINE: We want to buy stocks this week and see 5,500 by month end

This is especially positive for small-caps IWM -1.49%  as small-caps sensitive to number of Fed cuts

INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end
INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end
INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end
INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end
INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end
INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end

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INTRADAY ALERT:  May core CPI downside of +0.16% mom affirms rationale to buy stocks this week and into month end

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