The Dividend Cafe Tuesday - August 13, 2024
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 13 August 2024
⏱️ 4 minutes
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Summary
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
Transcript
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| 0:00.0 | Welcome to the Dividend Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. |
| 0:13.1 | Welcome to Dividendin Cafe. This is Tuesday, August the 13th. Brian Saitel with you from the Big Apple here again on Tuesday in New York City on a nice |
| 0:22.6 | up day in markets. The Dow closed up 408 points on the day. S&P closed above 5,400 for the first time |
| 0:29.9 | since I guess the beginning of the month, August 1st, was up a percent and a half, and the NASDAQ was up |
| 0:34.9 | two and a quarter on the day. So a pretty wide rally across the |
| 0:37.9 | board in all indices and also in bonds. The 10 year actually dropped five basis points. |
| 0:42.6 | Prices were up. We closed to 385 on tens. The volatility index is basically completely |
| 0:48.2 | 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, |
| 0:56.4 | quote unquote, that historical range of sort of that 15 number that we usually see in volatility |
| 1:01.1 | over time. Basically good news on risk assets for the day. All of this was fueled by lower |
| 1:06.6 | inflationary numbers, at least on the wholesale side, we had headline producer price index for |
| 1:11.2 | July was at 0.1% for the month. The consensus was for 0.2%. So cooler than expected. And then on core |
| 1:18.5 | PPI, excluding things like food and energy, we had a zero unchanged for the month of July. |
| 1:24.1 | And consensus was for 0.2%. Again, lower inflationary numbers, some lower interest rates, |
| 1:30.5 | still continued economic growth, some higher stock prices. It was the porridge is just right, |
| 1:35.2 | I guess, for the day as far as what we got out of these numbers. Tomorrow, we'll have the |
| 1:40.5 | CPI number, which will be more closely followed. And so we'll see if this actually |
| 1:44.6 | follows through to the numbers tomorrow. I suspect it will, but hard to predict a day away. |
| 1:50.5 | There was a small business index survey. This is the NFIB Small Business Optimism Index. |
| 1:55.5 | It was up a couple of points to a 93 handle. The historical average is 98, so it's still below |
| 2:00.6 | an historical average, but it's still below an historical average, |
| 2:01.8 | but it's technically the highest we've had now since February of 2020. And I think part of that |
... |
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