Hotter Consumer Inflation Will Test Stock Market Bulls' Trust In Market Mechanics
Portfolio Pulse from The Arora Report
The stock market is being tested by hotter consumer inflation, with the Consumer Price Index (CPI) coming in worse than expected. The SPDR S&P 500 ETF Trust (NYSE:SPY) ran up in anticipation of better than expected Producer Price Index (PPI) and CPI, but both came in hotter than expected. Positive money flows are seen in Apple Inc (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc Class C (NASDAQ:GOOG), Meta Platforms Inc (NASDAQ:META), and NVIDIA Corp (NASDAQ:NVDA), while negative flows are seen in Microsoft Corp (NASDAQ:MSFT) and Tesla Inc (NASDAQ:TSLA). Mixed flows are seen in SPDR S&P 500 ETF Trust and Invesco QQQ Trust Series 1 (NASDAQ:QQQ). Gold is attempting to break the psychological resistance at $1900, with the most popular ETF for gold being SPDR Gold Trust (NYSE:GLD).

October 12, 2023 | 3:27 pm
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POSITIVE IMPACT
Positive money flows are seen in AAPL, which could lead to a short-term increase in its stock price.
Positive money flows indicate that more investors are buying the stock than selling it, which could lead to a short-term increase in its price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Gold is attempting to break the psychological resistance at $1900, which could lead to a short-term increase in the price of GLD.
Gold is attempting to break the psychological resistance at $1900. If successful, this could lead to a short-term increase in the price of GLD, which tracks the price of gold.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SPY ran up in anticipation of better PPI and CPI, but both came in hotter than expected, which could lead to a short-term dip.
The SPY ETF, which tracks the S&P 500, ran up in anticipation of better than expected PPI and CPI. However, both indicators came in hotter than expected, which could lead to a short-term dip in the ETF's price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100