US futures launch after CPI, with Fed on track

He lives5 updates

• Wednesday, June 12, 2024 at 1:54 PM GMT+1

  It is a risk in the markets after the CPI is printed

  Stock futures rose after a cooler-than-expected reading on consumer prices for May.

  S&P 500 futures (ES=F) built on their 27th record close of the year, rising 0.7%. Nasdaq 100 futures (NQ=F) rose nearly 0.9%, also pointing to gains after a record close for the index. Dow Jones Industrial Average futures (YM=F) rose 0.6%.

  It is worth noting that the interest rate sensitive areas of the market witnessed the largest gains. Russell 2000-related futures (RT=F) rose about 2.3%.

  This came as investors quickly reset their expectations for interest rate cuts this year. After the data was released, markets were pricing in a roughly 69% chance that the Federal Reserve would start cutting interest rates by its September meeting. According to CME FedWatch data. This is higher than the 53% probability the day before.

• 

  Wednesday, June 12, 2024 at 1:32 PM GMT+1

  Inflationary pressures fell more than expected

  Consumer price increases in the United States slowed during May, according to a report Latest data Released by the Bureau of Labor Statistics Wednesday morning.

  The Consumer Price Index (CPI) was flat over the previous month and 3.3% year over year in May, a slowdown from 3.4% in April, and below the 3.4% annualized change economists had expected.

  May’s monthly increase fell short of economists’ expectations for a 0.1% rise.

  On a “core” basis, which excludes the more volatile costs of food and gas, prices in May rose 0.2% from the previous month and 3.4% from a year ago – lower than April data. Both measures were below economists’ expectations.

• 

  Wednesday, June 12, 2024 at 12:24 PM GMT+1

  Nvidia is like the sun..

  Kudos to Apollo’s chief economist, Torsten Slok, for this vital check on the S&P 500.

  Nvidia (NVDA) is clearly the sun around which 499 other companies revolve.

  Note: Apollo is the parent company of Yahoo Finance.

  

• 

  Wednesday, June 12, 2024 at 11:35 AM GMT+1

  JP Morgan comments on the vote on Musk’s salary package

  Tesla (TSLA) shareholders’ vote on Elon Musk’s $56 billion pay package is now up.

  Before the vote on Thursday, Tesla had just dropped this mail on Musk owned X detailing its CEO’s accomplishments (note that this is a weird thing to see from Company

  A new Yahoo Finance poll now shows that 96% of people who voted believe Musk’s pay package should not be approved.

  Meanwhile, JPMorgan analyst Ryan Brinkman weighs in on this morning’s note:

  “While both ISS and Glass Lewis, as well as several prominent institutional and retail shareholders, have expressed opposition to ratifying Mr. Musk’s 2018 compensation plan for 2024, we suspect it will pass, albeit with a lower approval rate than in 2018 and perhaps By a smaller margin than generally imagined, we base these forecasts on anecdotal evidence of strong support from individual shareholders and on our conversations with institutional investors whose reasons, on the whole, seem similar when asked to vote in favor of the SolarCity acquisition. The investors we spoke to did not support The Solar City acquisition was largely with them at the time, but they were concerned that there might be a more negative reaction to the share price in the event of a vote to reject the deal, given the perception of a vote of no confidence.

  Brinkman reiterated an Underweight (equivalent to Sell) rating on Tesla shares and a $115 price target, which assumes a roughly 32% downside from current price levels.

  Read more here about Musk’s vote and the key CEO pay package votes from Alexis Keenan, chief legal correspondent at Yahoo Finance.

• 

  Wednesday, June 12, 2024 at 11:20 AM GMT+1

  Confirmation of continued action after the big Apple deal

  Affirm (AFRM) remains one of the hottest indicators on the Yahoo Finance platform after news broke on Tuesday of an integration with Apple (AAPL) Pay. Shares rose 1.5% before the market open after rising 11% yesterday.

  Last night I sat down with Affirm founder and CEO Max Levchin for a new recording of my podcast called “Unlocking the Show.” The full episode (which addresses Levchin’s views on AI and political sentiment in Silicon Valley) will be released Friday morning on Yahoo Finance and Major podcast platforms.

  But I’m linking below a clip of Levchin’s comments for you to check out.

  Levchin stopped short of sharing how this deal would financially impact Affirm (it could be significant given the 1.4 billion iPhones worldwide), but he hinted that it could be a strong contributor to its P&L over time.

  He acknowledged that the deal “validates” the buy-now-pay-later space — which has been under siege from regulators and other parties almost since its inception.