The First Slice for Tuesday, August 2, 2022

U.S. stock indexes ended slightly lower, snapping a three-session streak of gains on Monday, following the S&P 500’s and Dow industrials’ biggest monthly gain since November 2020.

  • The Dow finished down -46.73 or -0.14%
  • The S&P 500 lowered at -11.66 or -0.28%
  • The Nasdaq closed down -21.71 or -0.18%

Stocks flipped between losses and gains on Monday after the Institute for Supply Management reported that its closely followed manufacturing gauge dipped to 52.8% in July from a reading of 53% a month earlier. 

Economists polled by The Wall Street Journal had expected the index to come in at 52.1%. While any number above 50% signifies growth, the latest reading was the weakest since June 2020.

On Friday, data showed that higher gasoline prices led the personal-consumption-expenditures price index up 1% in June, exceeding forecasts of a 0.9% advance. June inflation measured by the PCE index showed the cost of living over the past year climbed 6.8%, the highest rate since January 1982.

Last Wednesday, the Fed ended its two-day policy meeting with another 75-basis-point rate hike in an effort to curb soaring inflation. Fed Chair Jerome Powell said another 75 basis-point moves could be appropriate in September, but the Fed would take a data-dependent, meeting-by-meeting approach to decisions.

Powell also warned that the economy would need to see a period of below-trend growth to rein in red-hot inflation and that the path to a so-called soft landing for the economy continued to narrow.

Skeptics contend bulls, in looking for a so-called pivot from the Fed, were misreading the message from central bankers.

Federal Reserve Bank of Minneapolis President Neel Kashkari said on Sunday that the central bank is still committed to its goal of 2% inflation. However, “we are a long way away” from that goal, he said in an interview on CBS News’s “Face the Nation.”………..Full Loaf Hot Link[read more]

*Click on the “Full Loaf” icon to read the full article! After you read the article come back and tell us your thoughts.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.