The Dividend Cafe - The Dividend Cafe Tuesday - May 14, 2024

Episode Date: May 14, 2024

A daily summary of key market data and economic nuggets.  Reach out with questions anytime! [e-mail]. 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. It is Tuesday, May the 14th, and we ended up having a positive day in markets and actually closed just about right at the highs for the day. The Dow was up 126 points. NASDAQ was the biggest winner as far as an indice goes, was up 0.75%. So good day in markets and stocks. And actually bonds had a little bit of a bid as well. The rates dropped on the 10-year. We closed at 445, which was down about three basis points on the day. Biggest headline news was the producer price index, PPI, came out for the month of April a fair amount higher than expected. We got a 0.5 number on headline and core, actually, both, and 0.2 was expected for both. So a bit hotter for the month of April, but

March was revised lower to a negative number. So March was revised to negative 0.1%, both on headline and core. 2.17% year over year, again, annualized. So right around the target, frankly, with the latest numbers. Markets sort of took it as a mixed bag on the day. I would say generally positive, which is why markets closed up and bonds rallied a little bit. I will say that the odds for a September rate cut did move slightly lower on the day following this. We're still at a 60% chance for that in September. Tomorrow, we have the CPI number, which is going to be a much more focused on number. So we'll see if we get a follow through. The mover in PPI was really

mostly energy and services in those numbers that were higher than expected. And so you had the prior month, which was March revised lower because of energy. And then April came out a bit higher because of energy. Again, on the CPI number, what we're looking for is that the OER, that owner equivalent rent number to keep trending lower because it's such a big component and it's still in the 6% range when in reality it should be close to flat. So we'll see if that starts to flow through a little bit more, but we'll get that number tomorrow. Powell also had comments today about basically just reiterating that he thought inflation was stubborn, but still moving in the right direction. And that when he fielded a question on whether the next rate move could

be higher, he just said he was skeptical about that. And that would be unusual. And basically, the next rate move would be lower. So there you have it for the day. Generally positive. And I'll be back with you tomorrow, which will be Wednesday. We'll have a CPI day to go through. And with that, I shall let you go. Please reach out with your questions as you always do. We'll be sure to answer them. Thank you so much. 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

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