Daily Market Report June 13th, 2025
The market did better yesterday on another better inflation report, which was the May P.P.I. which showed a nominal gain of 0.1% and 2.6% year over year and for the core rate excluding food and energy it also gained 0.1% and 2.7% for the year. Weekly jobless claims stayed around the same of 248,000.
As a result, the S&P gained 23 points to 6045, the highest close since February 20th and less than 2@ from its all-time high. Other averages did well also but the Dow was held down by a large decline in BA on a tragic plane crash. On the other hand, a large gain in ORCL on earnings provided help to the S&P and Nasdaq.
The U.S. dollar hit its lowest level in three years amid the ongoing tariff threats and newest price data from the President’s tariff policies.
Further hints that tariffs are sparing inflation could put the Federal Reserve in a tight spot ahead of its meeting next Wednesday. But the recent sharp rise in crude oil prices, especially after Israel’s latest attack on Itan, will give the central bank a strong reason not to do anything as they wait for further developments to come about.
In the meantime, the President recently called Chair Powell by an insulting name but his hands are tied to making a replacement until next year when Powell’s term is up.
ADBE is lower this morning after its report last night but unfortunately the market is going to open sharply lower because of the large rise in crude oil prices to over $72 a barrel and that will take away the so-called lower inflation argument put forward by the administration.
By Don Selkin