Markets: They moved down a lot… again.
S&P roller coaster last week: down significantly, down, up a lot, down significantly, and up slightly.
Fed Balance Sheet: $8.932 trillion.
Fed Meeting: Up until recently the Fed was expected to raise their interest rate 50 basis points (1/2%). At the last Fed Chair press conference (early May), Fed Chair Jerome Powell assured everyone that a 75-basis point increase for June was not on the table. But after the CPI came in much higher than expected, someone leaked to the WSJ 75-basis points was being considered. And shocker… the Fed raised their interest rate Wednesday afternoon by 75-basis points (3/4%). That raised it from 0.75% up to 1.5%. Minutes from this meeting will come out in three weeks. Their next meeting is the end of July.
Housing: Starts dropped -14.4% in May. They are down -3.5% YOY.
Industrial production: It only increased +0.2% in May. Consensus was for +0.4%.
Inflation: The Producer Price Index (PPI), representing wholesale inflation, came out Tuesday morning. The hope was that wholesale inflation would drop from last month’s 11.0% number. Expectations were the PPI would remain at 11.0%. The actual number came in higher at 10.8%.
Jobless claims: The weekly number came in at 229,000. The four-week average is 218,000.
Radio: Bill and I chatted about Inflation, the Fed and why buying low takes courage. Here’s the link: https://parker-wealth.com/bill-and-chris-podcasts/bill-and-chris-fri-6-17 . You can normally hear us most Friday mornings at 6:38a, 7:38a, and 8:38a on 1100AM.
Retail sales: They declined -0.3% in May, missing the expectation of a +0.1% increase. Retail sales are up +8.1% YOY.
Focus of the week: Markets are up a lot midway through the day after the holiday. There’s not much economic news to influence Markets this week. Hopefully Markets will hold strong and begin to reverse their downward slide.
Holiday: Markets were closed Monday in observance of the Federal Juneteenth holiday.
Indicator focus: Existing home sales (Tue); jobless claims (Thu); and new home sales (Fri).