facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog search brokercheck brokercheck

The Morning View: July 13, 2021

In this morning’s data, the Consumer Price Index increased 0.9% in June, higher than expected, and is 5.4% higher on annual basis.  Prices of Used Cars and Trucks were again strong, up 10.5% for the month, while Medical Care Commodities and Electricity were slightly negative.  The core rate, which excludes prices for food and energy, also increased 0.9% in June, well above estimates, and is up 4.5% on an annual basis. Overall, strong inflationary data continues driven by many of the same categories as in previous months, including used vehicles.  The longer higher prices continue, the harder it will be for the Federal Reserve to ignore; especially as core rates are considerably above their 2% average target.  This dynamic will be on display as chair Jay Powell will speak to Congress later this week for an update on monetary policy.  In all, the 10-year bond yield ticked higher following the release of the data and equity futures are now lower as we head into the market open.

This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice, and does not take into account all the circumstances of each investor. Forward-looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.