The Dividend Cafe - The Dividend Cafe Tuesday - August 13, 2024

Episode Date: August 13, 2024

Market Rally Fueled by Lower Inflation Numbers - August 13 In this episode of Dividend Cafe, Brian Szytel reports from New York City on a positive day in the markets on Tuesday, August 13th. The Dow rose by 408 points, the S&P surpassed 5,400, and the Nasdaq increased by 2.25%. Bond yields also fell, with the 10-year closing at 3.85%. Lower than expected producer price index numbers and positive small business optimism contributed to the market rally. Brian anticipates the CPI numbers to be released tomorrow and encourages listeners to stay tuned for further analysis. 00:00 Introduction and Market Overview 00:54 Inflation and Economic Indicators 01:42 Small Business Optimism 02:10 Conclusion and Upcoming Events Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com

Welcome to the Dividend Cafe, weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. Welcome to Dividend Cafe. This is Tuesday, August the 13th. Brian Zytel with you from the Big Apple here again on Tuesday in New York City on a nice up day in markets. The Dow closed up 408 points on the day. S&P closed above 5,400 for the first time since, I guess, the beginning of the month, August 1st, was up a percent and a half. And the NASDAQ was up two and a quarter on the day. So a pretty wide rally across the board in all indices and also in bonds. The 10-year actually dropped five basis points. Prices were up. We closed at 385

on 10s. The volatility index has basically completely collapsed from the high that we saw Monday before last at 65 to now just 18. And we're getting back towards that normal range, quote unquote, that historical range of sort of that 15 number that we usually see in volatility over time. Basically, good news on risk assets for the day. All of this was fueled by lower inflationary numbers, at least on the wholesale side. We had headline producer price index for July was up 0.1% for the month. The consensus was for 0.2%. So cooler than expected. And then on core PPI, excluding things like food and energy, we had a zero unchanged for the month of July and consensus was for 0.2%. Again, lower inflationary numbers, some lower interest rates, still continued economic growth,

some higher stock prices. It was a porridge is just right, I guess, for the day as far as what we got out of these numbers. Tomorrow, we'll have the CPI number, which will be more closely followed. And so we'll see if this actually follows through to the numbers tomorrow. I suspect it will, but hard to predict a day away. There was a small business index survey. This is the NFIB, Small Business Optimism Index. It was up a couple of points to a 93 handle. The historical average is 98. So it's still below a historical average, but it's technically the highest we've had now since February of 2020. And I think part of that is just small business owners feeling more optimistic about some declining interest rates and more normalizing in the labor market, which makes sense to me. All in all, a positive day across the board.

Again, tomorrow we'll have CPI numbers, and I'll be back with you on Dividend Cafe. I encourage you to reach out with your questions, as you always do. We appreciate them. And with that, I shall let you go for the evening. Have a good night. The Bonson Group is a group of investment professionals registered with Hightower Securities LLC, member FINRA and SIPC, with Hightower Advisors LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities LLC.

Advisory services are offered through Hightower Advisors LLC. This is not an offer to buy or sell securities. No investment process is free of risk. There is no guarantee that the investment process or investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors. All data and information referenced herein are from sources believed to be reliable. Thank you. representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and

information are subject to change without notice. This document was created for informational purposes only. The opinions expressed are solely those of the Bonson Group and do not represent those of Hightower Advisors LLC or any of its affiliates. Hightower Advisors do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax advice or tax information. Tax laws vary based on the client's individual circumstances and can change at any time without notice. Clients are urged to consult their tax or legal advisor for any related questions.