SPY - Weak CPI Data Is Bad News For Stocks And Growth

2024-07-11 12:28:05 ET

Summary

• The CPI report came in weaker than expected, falling by 0.1% and climbing by 3.0% y/y, missing estimates.
• Change in CPI trend indicates slower nominal growth, potentially pushing the US economy closer to recession.
• Slower nominal growth ahead because of changing inflation trend could impact earnings and sales growth in the S&P 500.

The CPI report came in much weaker than expected, falling by 0.1% versus estimates for a gain of 0.1% while climbing by 3.0% y/y weaker than estimates for 3.1%. Even core CPI came in weaker, rising by just 0.1% in June, versus estimates for 0.2%, while rising by 3.3% y/y, missing forecasts for 3.3%....

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