[Platinum Insights] (6.14.23)

Good morning.  

S&P 500 and Nasdaq futures edged up on Wednesday as investors overwhelmingly expect the Federal Reserve to not raise interest rates as it concludes its meet later in the day. The decision is due at 2:00 p.m. ET. The decision won’t mean rate hikes are in for an extended pause, or – a point Powell is likely to emphasize – that rate cuts are anticipated anytime soon.  

Ahead of the announcement, the market will focus on producer prices reading for May, due at 8:30 a.m. ET, which is expected to show prices fell 0.1% last month, aiding sentiment that inflationary pressures were subsiding. The Energy Information Administration will release its weekly petroleum status report at 10:30 a.m. EDT.  

Yesterday’s CPI report revealed that headline inflation in May decelerated more than anticipated, reaching 4.0%, while the core gauge met expectations at 5.3%.  

Mortgage applications in the US jumped 7.2% in the week ended June 9th, 2023, the first increase in five weeks, and the biggest in nearly three months, data from the Mortgage Bankers Association data showed. The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) in the US decreased by 4bps to 6.77% in the week ended June 9th, 2023, the second straight week of decline.  

The US Department of Energy plans to buy 3 million barrels of US produced crude oil for the Strategic Petroleum Reserve for an average price of about $73 per barrel.  

WTI crude futures were up nearly 1% to above $70 a barrel. Gold held below $1,950 an ounce while the yield on the US 10-year Treasury note rebounded to approximately 3.8%.  

The Platinum Channel < 200 Stock List is doing well this week with CMI leading the way with an over $20 gain since being added last week.