[Platinum Insights] (6.13.23)

Good morning.  

US stock futures were flat, as investors anticipate the release of the inflation report later today and the Federal Reserve’s interest rate decision on Wednesday. Market participants were hopeful that data reflecting a slowdown in price pressures during May would support the expectation of a pause from the Fed in its policy meeting.  

CPI REPORT

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in May on a seasonally adjusted basis, after increasing 0.4 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 4.0 percent before seasonal adjustment.  

The index for shelter was the largest contributor to the monthly all items increase, followed by an increase in the index for used cars and trucks. The food index increased 0.2 percent in May after being unchanged in the previous 2 months. The index for food at home rose 0.1 percent over the month while the index for food away from home rose 0.5 percent. 

The energy index, in contrast, declined 3.6 percent in May as the major energy component indexes fell.  The index for all items less food and energy rose 0.4 percent in May, as it did in April and March. Indexes which increased in May include shelter, used cars and trucks, motor vehicle insurance, apparel, and personal care.

The index for household furnishings and operations and the index for airline fares were among those that decreased over the month.  The all items index increased 4.0 percent for the 12 months ending May; this was the smallest 12-month increase since the period ending March 2021. 

The all items less food and energy index rose 5.3 percent over the last 12 months. The energy index decreased 11.7 percent for the 12 months ending May, and the food index increased 6.7 percent over the last year.

The U.S. budget deficit swelled in May from a year earlier as revenue tumbled and Medicare spending surged, the Treasury Department said on Monday. The May deficit shot up to $240 billion from $66 billion a year earlier, more than offsetting the $176 billion surplus recorded in April. Revenues for May totaled $307 billion, down 21% from $389 billion a year earlier.  

China’s central bank lowered a short-term lending rate for the first time in 10 months, to help restore market confidence in the world’s second-largest economy.  

WTI crude futures held above $68 per barrel. Gold held below $1,960 an ounce while the yield on the US 10-year Treasury note was little changed above 3.7%.  

The S&P 500 and the Nasdaq logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com, Apple and Tesla.  

In the Swing Trading Portfolio RTX and WDC triggered sell signals as price hit resistance levels for gains of over 3% for each position. For more updates and education on Swing Trading, check out the Platinum Channel.  

Have a great day.  This information is provided for educational purposes and is not a recommendation to buy or sell a security.