Tourists have fled the place of energy. A bank says it could close too soon.

Today’s highlight will be the release of the Consumer Price Index, which could show that inflation is at a four-decade high. But for now, let’s look to the future – well, Thursday – when the second-quarter earnings season begins.

Do what you want with price action in the summer, but nothing like the energy sector has risen or fallen in the last two months. Energy Select Sector SPDR ETF XLE, up 66% as of June 8
-1.95%
So much so that now Russia is doing more or less business where it was before invading Ukraine. In fact, according to Factset data, the ETF had the second-highest outflow of any equity fund last month – 1.87 billion. The proverbial macro-tourists have come and gone.

Of course, ETFs, whose holdings include Exxon Mobil XOM,
-1.33%,
CVX rafters,
-1.83%
And EOG EOG resources,
-4.06%,
Unpaid price directions are almost exactly traded. But perhaps investors have fled too quickly. Maxwell Greenakoff, an equity strategist at French bank BNP Paribas, said the price space was looking compelling to move into a second-quarter earnings season. To be sure, there is a price trap at the moment, as corporate and macro commentary suggests that consensus estimates are too high. “However, energy is the single sector in which we have the most confidence and we are seeing strong earnings momentum towards second quarter results,” he said.

Energy, industrial and utilities are seeing the strongest earnings momentum as analysts expect their earnings to rise rather than fall. The recent relief on the bond yield front is also more bearish on banking technology. “We think the Nasdaq 100 P / E multiplier will be too early to see a rotation of growth due to the possibility of further rollover of‘ E ’,” he said, referring to earnings.

Another notable trend is that while homeowners are struggling with surprisingly high interest rates, regional banks – also related to the real estate market – are holding their own.

Hum

The CPI report will be released at 8:30 EST and it is expected to show a 1.1% increase in prices to extend year-on-year growth to 8.8%. Core CPI, which excludes food and energy, is expected to drop from 0.6% to 0.5%. TD Securities strategists say the headline figure will rise for the first time this year as gas prices rise and still-high food prices and housing inflation offset the decline in air fares and the continued decline in used car prices.

The Bureau of Labor Statistics says a statement circulated on the Internet claiming that the CPI has risen more than expected is a hoax.

The Fed’s Economic Trivia Base book will be released at 2 p.m. On Tuesday evening, the International Monetary Fund cut its U.S. growth forecast for the second time in two months from 2.9% to 2.3%. A new Fed paper puts the probability of a recession at 35% by the end of next year, matching the 1994 soft landing scenario.

Twitter TWTR,
+ 4.32%
As expected, Elon Musk has sued to stop the 44 billion acquisition, claiming the world’s richest man has “thrown a veil over Twitter and its business.”

Alphabetical Google GOOGL,
-1.43%
The company plans to reduce recruitment this year, according to Bloomberg News, citing a note from CEO Sundar Pichai. Delivery startup Gopf is cutting 1,500 jobs in the United States and closing 76 warehouses.

Citi Apple lowers its price target in AAPL,
+ 0.68%
At $ 200 to $ 175, but with the expectation of a foldable phone it still offers several reasons to buy.

Market

US Equity Futures ES00,
+ 0.15%

NQ00,
+ 0.22%
Somewhat ahead of the CPI report. 10 year Treasury yield TMUBMUSD10Y,
2.953%
Of which 2.96%. EURUSD Euro,
+ 0.23%
Was trading above parity.

The best ticker

Here are the most active stock tickers on CNET until 6 a.m. ET.

Teleprinter

Security name

EMG,
+ 5.40%

Gamestop

TSLA,
-0.54%

You are here

CMA,
+ 4.35%

AMC Entertainment

NIO,
+ 1.46%

Neo

AAPL,
+ 0.68%

Apples

TWTR,
+ 4.32%

Twitter

MULN,
-9.02%

Mullen Automotive

AMZN,
-2.26%

Amazon.co.uk

GOV,
+ 53.16%

Canoe

XELA,
-8.86%

Excel Technologies

Table

Barclays has released its 66th Annual Equity Gilt Survey, which provides data and analysis on long-term asset returns. The current year is not included in this graph of annual stock return distribution, but if it ends today, the S&P 500 total return index will fall by 19% as well as 9% inflation will be involved in the fifth worst year. Since 1925.

Random drama

Here is a heated exchange between Sen. Josh Howley, a Republican from Missouri, and Professor Khiara Bridge at Berkeley, which has fascinated Twitter.

This “I voted” sticker shows a six-headed Gremlin-like creature with a blood-like appearance.

Need to know it starts early and updates up to opening hours, but sign up here once to deliver it to your inbox. The email version will be sent at 7:30 a.m. EST.

Leave a Comment