DAILY UPDATE: CPI Up as Sock Markets End Mixed

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The consumer price index, a broad-based measure of goods and services costs, increased 0.3% on the month, putting the 12-month inflation rate at 2.7%, the Bureau of Labor Statistics reported Tuesday. The numbers were right in line with the Dow Jones consensus. Excluding volatile food and energy prices, core inflation picked up 0.2% on the month, with the annual rate moving to 2.9%, also matching the respective estimates.

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Stocks up

  • Citigroup gained 3.68% after the big bank reported better-than-expected earnings.
  • CoreWeave climbed 6.21% on the news that it will build a $6 billion AI data center in Pennsylvania.
  • Trade Desk jumped 6.59% thanks to its inclusion in the S&P 500, replacing the outgoing Ansys.
  • The Trump administration has launched a probe into drone imports. Drones use polysilicon, a key ingredient for solar panels, and tariffs on the material could help boost profitability for domestic manufacturers like First Solar, which rose 6.90%.
  • National Fuel Gas rose 5.65% after the energy company caught a rare double upgrade from Bank of America analysts, who like the energy company’s improved productivity.

Stocks down

  • BlackRock fell 5.86% after the world’s largest asset manager reported that a single client pulled $52 billion last quarter.
  • It wasn’t a great day for other big banks: Wells Fargo sank 5.43% after cutting its 2025 net interest income guidance, while JPMorgan Chase lost 0.74% despite beating sales and profit estimates.
  • Albertsons tumbled 5.02% even though the grocer reported a solid quarter thanks to strong pharmacy sales and digital revenue.
  • Newmont dropped 5.71% on the news that CFO Karyn Ovelmen is leaving the gold miner.

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Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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MAY: Jobs Report

BREAKING NEWS!

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Markets: Stocks fell yesterday as investors readied themselves for today’s jobs report. The May jobs report is expected to show hiring slowed while the unemployment rate held flat. The data release will come as investors closely watch for any further signs of slowing in the US labor market.

CPI: https://medicalexecutivepost.com/2024/07/13/what-is-the-elderly-cpi/

The Bureau of Labor Statistics data is slated for release at 8:30 a.m. ET, today. Economists expect non-farm payroll to have risen by 125,000 in May and the unemployment rate to have held steady at 4.2%, according to consensus estimates compiled by Bloomberg.

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DAILY UPDATE: Inflation Down, Wage Garnishments Up but Stocks Finish Mixed

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Inflation fell by one tenth of a percentage point to 2.3% for the year ending in April, the Bureau of Labor Statistics reported Tuesday in an update to the consumer price index. Forecasters had expected inflation to hold at 2.4%. 

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What’s up

  • Coinbase exploded 23.97% on the news that the crypto trading platform will be added to the S&P 500 next week.
  • Nvidia climbed back into the elite $3 trillion market cap club today, rising 5.63% on the announcement that it will send 18,000 AI chips to Saudi Arabia.
  • Solar stocks soared after early drafts of a Republican tax and spending bill revealed renewable energy cuts weren’t as bad as feared. First Solar climbed 22.66%, while SunRun popped 8.58%.
  • Super Micro Computer climbed 16.02% thanks to Raymond James analysts initiating their coverage of the server maker with an “outperform” rating.
  • Boeing rose 2.46% now that the Chinese government has removed its ban on domestic airlines accepting orders from the plane manufacturer.
  • Rising sentiment powered popular momentum stocks higher today: Palantir rose 8.14%, AppLovin climbed 6.38%, Robinhood Markets jumped 8.95%, and Hims & Hers Health gained 15.92%.

What’s down

  • Honda Motor fell 4.20% after the company warned that tariffs will ding its bottom line and postponed its plans to build an EV plant in Canada.
  • Hertz Global plunged 16.93% after it missed analyst estimates across the board and announced it will offer fewer cars for rentals this year.
  • Enphase Energy lost 4.82% on a downgrade from Barclays analysts, who foresee slower demand for residential solar power products.
  • Rigetti Computing dropped 14.59% after the quantum computing company failed to live up to the high expectations that strong results from its competitors had given shareholders.

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Wage garnishment for defaulted student loans to begin this summer.

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HEALTH ACTUARY: Medical Professions

By Dr. David Edward Marcinko MBA MEd CMP®

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THE MEDICAL AND HEALTHCARE ACTUARY

Health actuaries analyze potential risks, profits and trends that will affect their employers, which are often in the health insurance, government health services and medical provider industries. They advise companies on issuing policies to consumers based on risks, calculated premiums and upcoming changes in health-care costs.

It’s common for an actuary to have a bachelor’s degree or higher in actuary studies, mathematics or statistics. Coursework on medical terminology and hierarchy of the medical field is also beneficial. In addition to academic education, certification is also necessary to reach “professional status,” which is required by most employers.

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The professional organization, Society of Actuaries, certifies actuaries in the health and medical field. Their statistical work is commonly done with predictive tables, probability tables and life tables that are created on customized statistical analysis software such as Stata or XLSTAT.

The actuary field as a whole is growing faster than other fields, according to the Bureau of Labor Statistics [BLS]. In 2020, it expanded by 27 percent. The average annual salary for an actuary in 2010 was $87,650. More specifically, in the health insurance field, the salary was slightly higher at $91,000.

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: CONTACT: MarcinkoAdvisors@outlook.com 

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CPI: February 2025

BREAKING NEWS

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The Consumer Price Index (CPI) for February found that the cost of goods and services rose 0.2% on the month. The annual rate of inflation was also up 2.8% — slightly less than expected.

Here’s a breakdown of several price changes for February:

  • Food: increase 0.2%
  • Energy: increase 0.2%
  • Electricity: increase 1.0%
  • New vehicles: decrease 0.1%
  • Used vehicles: increase 0.9%
  • Apparel: increase 0.6%
  • Shelter: increase 0.3%
  • Transportation: decrease 0.8%
  • Medical care services: increase 0.3%

The Bureau of Labor Statistics reported that according to its indexes, over the month the cost of medical care rose 0.3%, physicians’ services were 0.4% higher, hospital services added 0.1%, and prescription-drug costs were unchanged. 

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DAILY UPDATE: Unemployment Rate, Banking Rules and Mental Health as the Markets Continue to Rise

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After rising for more than a year, the unemployment rate fell to 4.2% in August from 4.3% in July, the Bureau of Labor Statistics reported. That dip matched Wall Street’s consensus forecast, but the 142,000 new jobs added fell short of the 160,000 that analysts had expected, according to FactSet data cited by CNN.

The Biden administration released a final rule this week that would require payers to cover behavioral health services, including addiction care, to the same extent that they’d cover all other forms of healthcare. The move comes amid a rising mental health crisis in the US and in light of the fact that the vast majority of people with substance use disorders don’t receive treatment.

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What’s up

  • Dave & Busters Entertainment popped 4.66% after announcing strong sales and earnings growth last quarter, along with opening 13 new locations (more tokens for everyone!).
  • Petco Health and Wellness roared 32.90% despite mixed earnings last quarter, though shareholders wagged their tails at new CEO Joel Anderson’s plans to improve profitability.
  • Viking Therapeutics rose 11.31% thanks to JP Morgan initiating coverage of the company with a bullish overweight rating.

What’s down

  • Bank of America slipped 0.71% after a new filing revealed that Warren Buffett sold more shares of the company last quarter.
  • Rentokil Initial plummeted 21.07% once the pest control company made it clear that slow sales and currency exchange rates will take a $105 million toll on full-year profits.

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Here’s where the major benchmarks ended:

  • The SPX rose 59 points (1.0%) to 5,554.13; the Dow Jones Industrial Average® ($DJI) gained 125 points (0.3%) to 40,861.71; the NASDAQ Composite® ($COMP)rose 370 points (2.17%) to 17,395.53.
  • The 10-year Treasury note yield (TNX) climbed just under two basis points to 3.66%.
  • The CBOE Volatility Index® (VIX) fell to 17.7, the lowest close so far this month.

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Planned Fed rules are a win for big banks. The likes of JPMorgan and Bank of America celebrated the Fed walking back some of its proposals for tighter banking rules yesterday

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: The CPI, Korion Health and the Stock Markets Rebound

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The March Consumer Price Index, which the Bureau of Labor Statistics released last week, revealed that core inflation hit 3.8% Year over Year in March, rising for the first time in 12 months. That’s moving in the wrong direction for the Fed, whose goal is to bring inflation down to 2%.

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Here’s where the major benchmarks ended:

  • The S&P 500 index rose 43.37 points (0.9%) to 5,010.60; the Dow Jones Industrial Average® ($DJI) gained 253.58 points (0.7%) to 38,239.98; the NASDAQ Composite advanced 169.30 points (1.1%) to 15,451.31.
  • The 10-year Treasury note yield (TNX) was little changed at 4.617%.
  • The CBOE Volatility Index® (VIX) fell 1.41 to 16.39.

Chipmaker strength lifted the Philadelphia Semiconductor Index (SOX) up 1.7% Monday, partially reclaiming last week’s 9.2% tumble. Banking shares were also among the strongest sectors, while the Russell 2000® Index (RUT) advanced 1%. WTI crude futures earlier dropped to just a few cents above $82 per barrel, the lowest intraday price since late March.

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Telemedicine has a lot of potential to bridge barriers and make it convenient for people to access healthcare. But it’s limited by lack of tools. Your doctor can’t reach through the computer screen.”—Akshaya Anand, co-founder of Korion Health, on the startup’s efforts to create an electronic stethoscope for clinicians to record heart and lung movement (Maryland Today)

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DAILY UPDATE: Inflation Upticks as Big Pharma Blocks Medicare Price Negotiations and Stocks Soar with Nvidia and Oracle!

By Staff Reporters

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Big pharma sues over California drug price law

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Pharmaceutical companies have filed a slew of suits around the country to get federal judges to invalidate a government program aimed at lowering drug costs for seniors by allowing Medicare to negotiate prices, as is the norm in many other countries, according to the Washington Post. The companies argue it’s unconstitutional and would inhibit their ability to develop new treatments.

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The Federal Reserve is looking for steady, reliable signs that inflation is simmering down before it cuts interest rates this year. So far, 2024 has not delivered. Data released by the Bureau of Labor Statistics on Tuesday showed prices rose 3.2 percent over last year, slightly outpacing forecasts of 3.1 percent. Prices also rose 0.4 percent in February over the previous month — in line with expectations, but still hotter than economists would like to discern.

Stocks swung up on Tuesday as investors shrugged off a middling inflation report and looked ahead to next week’s Fed meeting. Meanwhile, Oracle went sky-high, posting its best day since 2021 after demand for AI prompted a huge increase in sales for its cloud computing business.

Here’s where the major benchmarks ended:

  • The S&P 500® index (SPX) gained 57.33 points (1.1%) to 5,175.27; the Dow Jones Industrial Average® ($DJI) added 235.83 points (0.6%) to 39,005.49; the NASDAQ Composite® (COMP) climbed 246.36 points (1.5%) to 16,265.64.
  • The 10-year Treasury note yield (TNX) rose about 5 basis points to 4.155%.
  • The CBOE Volatility Index® (VIX) fell 1.38 to 13.84.

Chip makers’ bounce-back helped boost the Philadelphia Semiconductor Index (SOX) more than 2%, as it recovered part of a 5% drop the previous two trading days. Industry leader Nvidia (NVDA) jumped over 7%. Consumer discretionary and communications services shares were also among the strongest areas. Regional banks and real estate were among the weakest sectors as the CPI data spurred an upturn in Treasury yields.

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U.S. ECONOMY: Perhaps a “Soft Landing” After All?

YET- HEALTH CARE IS GROWING!

By Staff Reporters

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The US economy is looking like it could avoid a downturn and achieve a soft landing after all. US employers added a more-than-expected 199,000 workers to their payrolls last month, the Bureau of Labor Statistics said recently. The solid result calmed many analysts’ fears that a steeper economic slowdown is imminent due to the Federal Reserve’s earlier interest rate hikes. And, it brings us closer to the coveted “soft landing” scenario, in which the Fed tames inflation on the economy. For example:

  • The unemployment rate unexpectedly ticked down for the first time since July, to 3.7%.
  • Average hourly pay increased by 0.4% and is now up 4% for the year, beating the projected pace of annual price growth.
  • But the job market isn’t quite what it used to be

Last month’s 199-k jobs created were below the average of 240,000 added in the preceding 12 months. Plus, November hiring was confined to just a handful of industries:

  • Healthcare and the government were responsible for two-thirds of the headcount growth, adding 77,000 and 49,000 jobs, respectively.
  • The manufacturing sector gained 28,000 workers—but that was largely due to folks returning to work after striking against the Big Three automakers.
  • CITE: https://www.r2library.com/Resource/Title/082610254

Finally, in another sign that employers might be pulling back from on-boarding new people, the Labor Department reported earlier this week that job openings in late October were at their lowest since March 2021.

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