Registered Investment Adviser Caleb Lawrence
The major averages enter the final hour with modest gains on disappointing news. Since Monday the Standard and Poors 500 Index advanced 35 points or 1.4% while the NASDAQ is up 159 points or 2.6% to snap a string of recent losses.
The June Consumer Price Index was unchanged, missing expectations for a small gain. On a year ago basis prices slipped for a 4th consecutive month to post a 1.6% advance. Again, the data continues to show that the Fed’s desired target of 2% is, by and large, not being met.
Retail sales slipped again in June, down .2% to mark a 3rd decline in 5-months. This miss to expectations combined May will weigh on 2nd quarter economic growth that will struggle to mark 2.5% based on the current data.
Industrial Production was one of the bright spots today as it beat expectations in June with a .4% gain on strength in motor vehicles, parts and mining. Capacity utilization increased fractionally to 76.6%.
Business Inventories advanced .3% in May, breaking a string of 5-consecutive declines on strength in retail and wholesale inventories.