Hundred dollar bill. Falling money isolated background. American cash.

ZERO HEDGE reports:

A little over a week ago, in the aftermath of the latest PCE data (which came in line), stocks soared in anticipation of tomorrow’s CPI print which the zeitgeist at the time saw as likely to be a miss, due to weakness below the surface in the latest PCE data.

Well, what a difference a few days makes because late on Thursday, stocks got pulverized amid speculation that Friday’s CPI print will come in even hotter than expected.

The reason for that is a note from JPMorgan, which still has a widespread financial following despite blasting market propaganda (…) on most days when stocks crater, in which the bank’s chief economist Michael Feroli predicted that CPI would come in even hotter than consensus.

Excerpting from the JPM note (available to professional subs in the usual place), Feroli wrote that the consumer price index (CPI) likely increased 0.8% in May, above the 0.7% exp. and up from 0.3% in April. This jump will be due to a strong increase in energy prices (4.6%) — as gasoline prices increased noticeably again that month — along with continued solid gains for food prices (0.7%) and the core index (0.47%). With this forecast, JPM expects year-ago CPI inflation to hold at 8.3% between April and May, in other words, unchanged from last month and also above the Wall Street consensus estimate of 8.2%…

To read the full post, please click here.

Also out on Thursday by Seeking Alpha: “Dow falls more than 600 points; Nasdaq, S&P 500 drop ahead of inflation data” (free reg. is required).

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