MOrning Bell - Stock Trading LIVE! Tuesday July 13th

TL;DR

Inflation continues to rise, earnings season is underway with mixed results, and small business optimism is increasing despite labor shortages and inflation concerns.

Transcript

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Key Insights

• ☠️ Inflation is a growing concern, with the CPI reaching its highest rate in over a decade.
• ❓ Earnings season brings a mix of results, highlighting the varied performance of different companies.
• 👨‍💼 Small businesses are cautiously optimistic despite challenges such as labor shortages and inflation.
• 👀 The Federal Reserve's potential tapering efforts and its impact on the markets are being closely watched.
• 😀 Boeing faces further delays and rework requirements for its 787s, which may impact its stock performance.
• ↩️ Treasury yields and their potential effects on investment returns are in focus.
• ✋ Uber and PayPal have different technical outlooks, with Uber needing to break out and PayPal reaching all-time highs.

Questions & Answers

Q: How does the CPI measure inflation and what was the recent rate?

The CPI measures what consumers pay for goods and services, excluding energy and food prices. The index increased by 5.4% in June, the highest rate since 2008.

Q: What impact are supply shortages and higher shipping costs having on goods' prices?

Supply shortages and higher shipping costs are contributing to rapid increases in goods' prices. This is reflected in rising inflation rates and can affect various sectors, including retail and manufacturing.

Q: What are the key insights from the article?

1. Inflation is continuing to rise, with the CPI at its highest rate since 2008.
2. Earnings season is underway, with mixed results reported by different companies.
3. Small business optimism is increasing, despite concerns about labor shortages and inflation.
4. The Federal Reserve is discussing tapering monthly asset purchases, potentially indicating a shift in their monetary policy.
5. Boeing faces additional rework requirements for its 787s, leading to delivery delays.
6. Investors are monitoring treasury yields and the potential impact on markets.
7. Uber and PayPal are experiencing different trends, with Uber needing to break out above key levels and PayPal making all-time highs.
8. Pinterest and Virgin Galactic are potential short opportunities, while DGX (Quest Diagnostics) and Ford are in a holding pattern.

Summary & Key Takeaways

• The Consumer Price Index (CPI) increased by 5.4% in June, the highest 12-month rate since 2008, signaling continued inflation.

• Earnings season is in progress, with some companies reporting strong results while others struggle. Notably, JP Morgan reported well, but their stock price declined.

• Small business optimism has improved slightly in June, despite concerns about labor shortages and inflation. Confidence is rising as the economy reopens, but qualified applicants for positions remain scarce.