US Futures Slip After CPI Explodes 5.4% YoY
US Futures are trading marginally lower on Tuesday morning with the Dow down -0.16% to 34,821, the S&P down -0.21% to 4,369, the Russell down -0.37% to 2,268 and the Nasdaq down -0.4% to 14,865 as of 8:50AM. We saw June CPI come in extremely hot moments ago at 0.9% vs the 0.5% expected, while Core CPI also came in at 0.9% vs the 0.5% expected. We're talking YoY CPI of 5.4%, folks. Ouch! Good luck with the transitory narratve now DJ Powell.
PepsiCo beat earnings estimates this morning and is up around 1.6% in pre-market trade, while JP Morgan and Goldman Sachs also released strong earnings which showed a slip in FICC and trading desk revenue for JP Morgan (but a beat on earnings), while Goldman reported their "second best quarter in history," according to ZeroHedge.
The US10Y yield is down around -0.75% to 1.35%, and is falling fast after the hot CPI print as investors flee into USTs. The Dollar caught a strong bid - we're up around 0.25% and sitting at 92.47. Gold is trading relatively flat - we're up 0.6% to 1,807.4, while WTI rose 0.18% to 74.27. Vix is holding on to a 16 handle for dear life after a light rebound yesterday after Friday's massacre.
Finally, Bitcoin (BTCUSD) is down around -1.80% to 32,522, and looking incredibly bearish as we approach 30k support. This is playing out like a dead cat bounce which looks poised to resolve itself in the very near future. I may be a buyer of Bitcoin at the 20k level, depending on the state of the equity market, and of course, the policy outlook.
Today should be a doozy after this morning's insane CPI print. Let's see how things shake up. Cheers, Michael.
* I am/we are currently long HUV, UVXY.
PepsiCo beat earnings estimates this morning and is up around 1.6% in pre-market trade, while JP Morgan and Goldman Sachs also released strong earnings which showed a slip in FICC and trading desk revenue for JP Morgan (but a beat on earnings), while Goldman reported their "second best quarter in history," according to ZeroHedge.
The US10Y yield is down around -0.75% to 1.35%, and is falling fast after the hot CPI print as investors flee into USTs. The Dollar caught a strong bid - we're up around 0.25% and sitting at 92.47. Gold is trading relatively flat - we're up 0.6% to 1,807.4, while WTI rose 0.18% to 74.27. Vix is holding on to a 16 handle for dear life after a light rebound yesterday after Friday's massacre.
Finally, Bitcoin (BTCUSD) is down around -1.80% to 32,522, and looking incredibly bearish as we approach 30k support. This is playing out like a dead cat bounce which looks poised to resolve itself in the very near future. I may be a buyer of Bitcoin at the 20k level, depending on the state of the equity market, and of course, the policy outlook.
Today should be a doozy after this morning's insane CPI print. Let's see how things shake up. Cheers, Michael.
* I am/we are currently long HUV, UVXY.
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