[Platinum Insights] (6.30.23)

Good morning. 

U.S. stock index futures are up this morning, the final trading day of the second quarter, ahead of key inflation data.  

Despite a recent streak of losses, the three main U.S. indexes are on course to end June and the second quarter on a high note as investors expect the Fed’s aggressive tightening will not derail the U.S. economy. Artificial intelligence (AI)-inspired frenzy in technology and megacap stocks set the tech-heavy Nasdaq for a near 30% gain in the first half – in what could be its best such performance in 40 years. 

Meanwhile, Treasury yields continued to rise on bets of further rate hikes, with several parts of the yield curve reaching deeper levels of inversion, a sign that bond investors are increasingly worried about an economic slowdown. 

The Fed’s preferred inflation gauge, the Personal Consumption Expenditure index (PCE) for May, will be released at 8:30 a.m. ET. Economists expect core rates to remain steady at 4.7%. 

Global investors turned net buyers of equity funds in the week to June 28. According to Refinitiv Lipper data, global equity funds saw a net $2.81 billion in inflows after booking about $15.96 billion worth of outflows in the previous week. global bond funds drew $6.95 billion in net purchases after posting about $857 million in outflows in the previous week. Money market funds recorded outflows for a third straight week, amounting to a net $31.68 billion. 

WTI crude futures steadied just under $70 per barrel. Gold steadied above $1,900 an ounce while the yield on the US 10-year Treasury note approached 3.9%. 

Stocks on this week’s Platinum Channel Horizons Stock list had a nice week so far with 3 out of 4 stocks showing gains. Gainers include CASY + $14.85 / share, MRK + $2.38 / share and CHTR + $3.29 / share. The XLV was the only disappointment providing a loss of -$0.62 / share. 

Have a great weekend!