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Decoding CPI, Rate Cuts, and Market Moves · The SPY Trader

• 0:00
  Welcome to the 'Spy Trader' podcast!
• 0:02
  I’m Cash Flowbert,
• 0:03
  It’s 6:00 AM on July 11th,
• 0:06
  2024,
• 0:07
  Let’s dive into the key news and insights for the S&P 500,
• 0:12
  First up,
• 0:13
  the Consumer Price Index (CPI) report showed a 0,
• 0:17
  1% decline from last month and a 3,
• 0:20
  0% yearonyear increase,
• 0:22
  Core inflation also rose just 0,
• 0:24
  1% monthovermonth,
• 0:25
  standing at 3,
• 0:27
  3% yearly,
• 0:27
  These figures exceeded economist expectations,
• 0:30
  resulting in a 9basis point drop in the 10year Treasury yield,
• 0:35
  The likelihood of a Federal Reserve rate cut in September has surged to 87%,
• 0:41
  The job market added 206,
• 0:43
  000 nonfarm payroll jobs in June,
• 0:46
  with unemployment ticking up to 4,
• 0:48
  1%,
• 0:49
  Corporate earnings are mixed: Costco's membership fee hike boosted its stock in premarket trading; Delta Air Lines and PepsiCo reported earnings raising concerns about consumer demand,
• 1:00
  JPMorgan Chase is also in focus with Q2 results expected to hit $4,
• 1:06
  15 per share,
• 1:07
  In tech and alternative investments,
• 1:10
  QuantumScape’s stock soared by nearly 40% after an agreement with Volkswagen’s PowerCo for mass production of solidstate batteries,
• 1:18
  MicroStrategy announced a 10for1 stock split,
• 1:20
  drawing interest from smaller investors due to their significant bitcoin reserves,
• 1:25
  Analysis time: Easing inflation could reduce fears of rising costs impacting consumer spending and corporate profits,
• 1:32
  Potential Fed rate cuts in September might boost stock markets,
• 1:37
  as lower interest rates generally lead to higher asset prices,
• 1:41
  Yet,
• 1:42
  earnings from Delta and PepsiCo indicate some consumer weakness,
• 1:46
  which could be worrying given current market valuations,
• 1:49
  Trading recommendations:
• 1:52
  which has historically performed well around membership fee hike announcements,
• 1:57
  QuantumScape looks promising due to their new partnership with Volkswagen,
• 2:01
  Watch JPMorgan Chase’s earnings closely,
• 2:03
  as their stock might experience volatility postannouncement,
• 2:07
  especially amid ongoing Federal Reserve policy talks,
• 2:10
  Overall,
• 2:10
  easing inflation and potential rate cuts are positive signs for the S&P 500,
• 2:16
  but pay close attention to specific sectors and company performances,
• 2:20
  Diversification remains essential,
• 2:22
  Stay informed and make wise trading decisions,
• 2:25
  That’s all for this episode of 'Spy Trader,
• 2:28
  ' Until next time,
• 2:30
  stay savvy,
• 2:31
  stay informed,
• 2:32
  and may your trades always be bullish!