CPI Inflation Surprises To The Upside | Daily Market Update

Wednesday, May 12, 2021

Top Story

CPI Inflation Surprises To The Upside

  • The Bureau of Labor Statistics released April data for the Consumer Price Index (CPI) this morning showing headline CPI jumped 0.8% month over month vs. estimates of 0.2%, while core CPI jumped 0.9% month over month vs. estimates of 0.3%.
  • Year over year, headline CPI rose 4.2% (highest since 2008) while core CPI came in at 3.0% (highest since 1996).
  • We examine today’s data release as well as implications for future inflation in today’s LPL Research blog, available at 12p.m. ET.

Daily Insights

U.S. markets head lower for a second straight day on inflation worries after CPI surge

Healthy consolidation in S&P 500 barely dents trend’s strength

  • In a strong bull market, sometimes it’s easy to forget that stretches of down days are normal and even healthy.
  • Down days naturally turn market participants’ minds to potential risks. There are several stories that are easy to tell—inflation, taxes, valuations, sentiment—but overall macroeconomic fundamentals are still providing solid support for stocks.
  • The S&P 500 may continue to grind higher, but even a significantly stronger pullback than what we’ve seen from the last two market sessions could strengthen, rather than weaken, the resiliency of the overall trend.

New Street View Video: What It’s Like To Go On CNBC

LPL Research Chief Market Strategist Ryan Detrick takes us on a behind-the-scenes look at what it is like to be featured on CNBC in the latest LPL Street View.

Technical update

Technology and the Nasdaq led on a relative basis Tuesday, but still closed lower and are extending those losses in early trading today. Next support for the Nasdaq Composite comes in the range near 12,400, while the S&P 500 has support at 4,118 followed by 4000.

Amazing Earnings Season: LPL Research Reacts

LPL Research raises its year-end S&P 500 Index fair value target range again in the wake of a stunning Q1 2021 earnings season. Learn more in this week’s Weekly Market Commentary.

 A Record Breaking Earnings Season

On the LPL Market Signals podcast, Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder discuss the incredible earnings season, debate whether we’ve hit a peak in earnings and economic growth, and economic policies.



This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data are from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value

For Public Use – Tracking # 1-05143521