LIVE CPI DATA INFLATION REPORT
In a Nutshell
Markets rallied sharply after June CPI came in cooler than expected, with core inflation at 2.6% versus 2.8% forecast, triggering a 1.4% NASDAQ surge. Energy prices plunged (gasoline -9.7%), driving the headline CPI drop to 3.5%, while IBM cratered over 21% on an earnings miss despite prior White House support. Traders are warned to stay cautious near QQQ 730-740 resistance and exit when in doubt.
These notes were generated by AI and may contain inaccuracies.
Markets showed a V-shaped recovery during the overnight hours and were trading in the green just moments before the CPI data release on July 14th at 5:27 a.m. The NASDAQ was pushing higher for no apparent reason at this time.
IBM was giving back all its gains and retesting previous lows around 220, a support level last tested approximately two months prior after running up to highs of 350.
INTC was noted as a stock the speaker does not like.
Semiconductor stocks gapped up overnight, with Micron up 3% from a close of 937 and currently trading around 967 after testing lows of 910 multiple times during the overnight session, finding support at the same level tested the previous day.
The CPI report came out significantly lower than expected. Core CPI came in at 2.6% versus the expected 2.8% and previous reading of 2.9%. Overall CPI dropped from 4.2% to 3.5%.
The month of June saw substantial drops in energy-related categories. Energy commodities were down 9.5%, gasoline down 9.7%, and fuel oil down 9.2%. The biggest increase was approximately half a point in utility gas pipe services.
Following the release, the NASDAQ surged 1.4%. Markets celebrated the lower-than-expected inflation numbers. SanDisk rose 7.5%, Tesla gained 1.2%, and SpaceX was up approximately 1%.
The speaker noted that when inflation reports previously came in higher than expected, markets barely dropped, but the current lower reading was being celebrated. The decline aligns with the drop in oil prices during June, including significant downturns during the ceasefire period in the Middle East. Oil prices have since begun recovering overnight.
IBM was down over 21% after missing earnings. This was highlighted as concerning given recent promotion of IBM by Trump a few weeks prior.
QQQ overbought levels are identified around 730-740, while oversold levels are around 710-700. The speaker advised caution at these levels and recommended cashing out when in doubt. Markets are described as always rational and willing to recover, and traders should not be surprised by recoveries despite ongoing Middle East tensions.
The speaker announced going live at 9:30 a.m. Eastern time (6:30 a.m. Mountain Standard Time) with the Investing.com team and encouraged viewers to subscribe for notifications.
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