CPI Inflation Beats Expectations Again | Daily Market Update

Thursday, June 10, 2021

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CPI Inflation Beats Expectations Again

The Bureau of Labor Statistics released May data for the Consumer Price Index (CPI) this morning showing headline CPI jumped 0.6% month over month vs. estimates of 0.5%, while core CPI jumped 0.7% month over month vs. estimates of 0.5%. We examine today’s data release as well as implications for future inflation in today’s LPL Research blog, available at 1p.m. ET.

Daily Insights

U.S. markets shake off inflation report, open slightly higher

  • The S&P 500 opened about 0.3% higher, while the Nasdaq Composite is lower as growth stocks pullback slightly.
  • European markets are little changed through midday trading.
  • Asian equities finish mostly higher as China states that inflation will be under 2% this year.

Jobless claims continue to show steady improvement

Initial claims for unemployment were reported under 400k for the second straight week coming in at 376k. Even more encouraging, continuing claims, which had largely stagnated over recent months, fell to their lowest level since March 2020 at less than 3.5 million.

Europe’s vaccine rollout no longer far behind the United States

  • Vaccine progress in Germany, Italy and Spain has closed the gap versus the U.S.
  • Just over 50% of the U.S. population has received at least one shot, compared to 46% in Germany, 45% in Italy, 43% in Spain, and 42% in France (source: org). https://ourworldindata.org/
  • Canada leads among the largest nations at 63%, followed by the United Kingdom (UK) at 60%.
  • Trouble spots with slow rollouts include Brazil (24%) and India (14%).

What Does LPL Stand For?

LPL Financial Chief Market Strategist Ryan Detrick reveals what LPL Financial does and does not stand for—plus, a special announcement on the latest LPL Street View.

Technical update

Another day of stalled equity markets may end today. The S&P 500 closed Wednesday just 0.4% below the May 7 record intraday high of 4238 and eclipsing that level will be key to watch if U.S. equities react positively to today’s CPI report. On the downside, first support can be found at the 50-day moving average of 4155.

Policy Shifts May Challenge Markets

LPL Research contends that policy tailwinds may turn into headwinds in 2022, but economic fundamentals are likely to dominate. Learn more in this week’s Weekly Market Commentary.

Meme Stock Mania

On this week’s LPL Market Signals Podcast, Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder examine what meme mania means for investors, explore how policy could impact things for the rest of 2021, and dissect the recent weaker than expected monthly jobs data.



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