Latest / MPC Markets Morning Call
Soft CPI Gives the Fed Cover & Relief Rally
CPI dropped to 3.5% and stocks bounced, but we think the celebration is premature — it's still well above target and mostly driven by oil prices rolling back. Bank earnings were a mixed bag: Goldman Sachs up 9% on record trading, JP Morgan posted record profit, but Citi fell 5%. We break down why the trading desks are carrying these numbers and what it means for the sector.
The bigger story: retail margin lending has ballooned to $1.4 trillion, fund managers have almost no cash to buy a dip, and put volumes are at the floor. We explain why that setup makes us short-term cautious and what…
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