It was a record-setting week for the S&P 500 as it closed Friday at 5,431, up over 1% for the week and up in seven of the last eight weeks. The week started out slow with no major news, but the S&P 500 gained about 0.25% each day while setting two new record closing highs. Before Wednesdays open, the Consumer Price Index (CPI) monthly number came in at 0.0%, down from Aprils 0.3%. Unchanged is the lowest level going all the way back to May of 2020. The annual rate was 3.3%, down from the previous 12-month rate of 3.4%. Buoyed by this news, the S&P 500 gapped up at the open, popping through the 5,400 level for the first time ever. In the afternoon the Fed announced a continued pause in rates and projected just one rate cut this year. Throughout the day yields dropped and this double dose of good news (CPI + Fed) resulted in the S&P 500 hitting another record closing high at 5,421. On Thursday the Producer Price Index unexpectedly ticked down 0.2% last month, while economists expected the gauge to increase 0.1%. That led to a streak of four in a row S&P 500 record closing highs. On Friday the University of Michigans Survey of Consumers showed that consumer sentiment declined to 65.6 in June, down from 69.1 in May and below the 71.5 estimate. While the S&P 500 was weak throughout the day, it did close at a session high, just 3 points shy of another new high. From a technical perspective, Large Cap Growth remains at the top of the Performance Ranking leaderboard. Powered by strong earnings and 10:1 stock splits, last week Nvidia (NVDA) led the way and this week Broadcom (AVGO) surged more than 23%. What has been unusual is the narrow focus of these gains as the International (EFA) and Small Cap (RUT) sectors sold off this week, with both now having negative monthly returns. For next week we are pretty light on economic news, getting only retail sales on Tuesday. For TSP TIPS the C fund leads the Performance Ranking leaderboard by a significant margin over both the I and S funds. Meanwhile the F fund has a bullish Composite Score. As such, we recommend the following new investment mix. Lastly, on Tuesday 18 June at 1700 ET we will be having a Zoom meeting covering the ProFunds fund family (profunds.com) and ProFunds TIPS. To give you a sneak peek, please check out the ProFunds Ultra NASDAQ 100 (UOPIX) and Semiconductor (SMPIX) fund charts on Yahoo finance or your favorite charting software. Finally, Happy Fathers Day to all!!
It was a record-setting week for the S&P 500 as it closed Friday at 5,431, up over 1% for the week and up in seven of the last eight weeks. The week started out slow with no major news, but the S&P 500 gained about 0.25% each day while setting two new record closing highs. Before Wednesdays open, the Consumer Price Index (CPI) monthly number came in at 0.0%, down from Aprils 0.3%. Unchanged is the lowest level going all the way back to May of 2020. The annual rate was 3.3%, down from the previous 12-month rate of 3.4%. Buoyed by this news, the S&P 500 gapped up at the open, popping through the 5,400 level for the first time ever. In the afternoon the Fed announced a continued pause in rates and projected just one rate cut this year. Throughout the day yields dropped and this double dose of good news (CPI + Fed) resulted in the S&P 500 hitting another record closing high at 5,421. On Thursday the Producer Price Index unexpectedly ticked down 0.2% last month, while economists expected the gauge to increase 0.1%. That led to a streak of four in a row S&P 500 record closing highs. On Friday the University of Michigans Survey of Consumers showed that consumer sentiment declined to 65.6 in June, down from 69.1 in May and below the 71.5 estimate. While the S&P 500 was weak throughout the day, it did close at a session high, just 3 points shy of another new high. From a technical perspective, Large Cap Growth remains at the top of the Performance Ranking leaderboard. Powered by strong earnings and 10:1 stock splits, last week Nvidia (NVDA) led the way and this week Broadcom (AVGO) surged more than 23%. What has been unusual is the narrow focus of these gains as the International (EFA) and Small Cap (RUT) sectors sold off this week, with both now having negative monthly returns. For next week we are pretty light on economic news, getting only retail sales on Tuesday. For TSP TIPS the C fund leads the Performance Ranking leaderboard by a significant margin over both the I and S funds. Meanwhile the F fund has a bullish Composite Score. As such, we recommend the following new investment mix. Lastly, on Tuesday 18 June at 1700 ET we will be having a Zoom meeting covering the ProFunds fund family (profunds.com) and ProFunds TIPS. To give you a sneak peek, please check out the ProFunds Ultra NASDAQ 100 (UOPIX) and Semiconductor (SMPIX) fund charts on Yahoo finance or your favorite charting software. Finally, Happy Fathers Day to all!!