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The CML Close - Market Wrap - PPI and Core PPI, Retail Traders are Buying the Dip, and Crypto's Hit - 05-12-2022

Date Published:

The Dow and S&P 500 fell while NASDAQ and the Russell 2000 rose.  Small- and mid-cap technology growth rose with the ARKK ETF rising 5%.

The U.S. April PP measure came in at 11%, below March's 11.5% (revised up from 11.2%), but above the mean forecast for 10.7%. Core PPI came in at 8.8%, lower than March's 9.2%, and below the consensus estimate of 8.9%.

PPI Trend

Core PPI Trend
SPX 3,930.29 -4.89 (-0.12%)
NASD 11,370.96 +6.73 (+0.06%)
DJIA 31,730.04 -104.074 (-0.33%)
R2K 1,729.81 +11.67 (+0.68%)
VIX 32.70 +0.14 (+0.43%)
Oil 106.84 +1.13 (+1.07%)

• Retail investors continue to buy the dip according to TD Ameritrade.

• Crypto currencies saw $200 billion wiped on yesterday and $600 billion in the last week.

Headlines of the Day
Stocks Slide as Inflation Fears Weigh
Stocks are extending recent declines. Wednesday capped the worst five-day stretch for Dow industrials since mid-2020.

Retail investors are continuing to buy the dip in tech despite recent turmoil, says TD Ameritrade
The world’s largest tech firms recently shed more than $1 trillion in value over three trading sessions. Investors appear to have interpreted the pullback in tech as a buying opportunity.

Global Supply Chain Crisis Flares Up Again Where It All Began
China’s stringent rules to curb Covid-19 are about to unleash another wave of summer chaos on supply chains between Asia, the U.S. and Europe.

More Than $200 Billion Wiped Off Cryptocurrency Market in a Day
A massive sell-off in cryptocurrencies wiped over $200 billion of wealth from the market in just 24 hours, according to estimates from price-tracking website CoinMarketCap.

U.S. mortgage rates jumped again this week, hitting the highest level since July 2009
The average for a 30-year loan was 5.3%, up from 5.27% last week and the highest since July 2009, Freddie Mac said in a statement Thursday.

Economic Data Results for 5-12-2022
United States Producer Prices Change
PPI rose 11% versus estimates of a 10.7% rise, but below last month's original 11.2% reading which was revised upward to 11.5%.

United States Core PPI
The producer price index for final demand less foods and energy in the United States rose by 8.8 percent from a year earlier in April of 2022, easing from a record-high 9.6 percent increase in the prior month and below market expectations of an 8.9 percent rise.

United States Continuing Jobless Claims
Continuing Jobless Claims in the United States decreased to 1343 thousand in the week ending April 30 of 2022 from 1387 thousand in the previous week.

United States Initial Jobless Claims
The number of Americans filing new claims for unemployment benefits increased by 1 thousand to 203 thousand in the week ended May 7th, 2022, from a revised 202 thousand in the previous period and above the market estimate of 195 thousand. It is the highest reading since mid-February.

Economic Data Due Tomorrow on 5-13-2022
United States Michigan Consumer Sentiment

United States Import Prices

United States Export Prices

United States Michigan Consumer Expectations

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