Market Drama

Welcome to this week’s Market Drama!

• The S&P 500 was down 0.2% (essentially didn’t move). 
  • Low volatility. 
• Economic Data:
  • Core CPI came in as expected at 5.5% year-over-year growth for April. 
  • Core PPI, came in as expected at 2.3%. 
• A couple numbers on the negative side: 
  • The University of Michigan, Consumer Sentiment Index tame in at a worse than expected 57.7 (forecast of 63). 
  • Consumers are not feeling very confident about the next six months.
• Interest Rates:
  
  • Federal Governor Michelle Bowman spoke on Friday as she said that inflation recent numbers do not signal a downward path yet.
  • The Federal Reserve is in restrictive territory (trying to slow down the economy). 

What to look out for this week: 

• Negotiations on U.S. debt ceiling have been postponed till next week. 
• April retails sales and expected earnings from a couple “proxies” for the economy. 

Stay tuned for next week. 

– Andres