Cuts, it’s always the cuts

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Cuts, it’s always the cuts
ManufacturingBondsMacroeconomics
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S&P 500 couldn‘t just surge right after core PCE coming (only) in line – personal income underwhelming isn‘t a good sign for earnings ahead, but I wrote about that amply in connection with CPI and PPI (companies just can‘t pass on their rising costs, and you know about credit card debt too).

S&P 500 couldn‘t just surge right after core PCE coming in line – personal income underwhelming isn‘t a good sign for earnings ahead, but I wrote about that amply in connection with CPI and PPI . But after the opening bell, the first swallow of turnaround Thursday continued, and I gave it better odds of succeeeding than it did on Thursday. In every case, my weekly roadmap shared with clients on Sunday, was fulfilled to the letter – down first, but Thursday Friday the card starts turning.

Add in increasingly squeezed and not optimistic consumer , and you see many XLY names taking it on the chin. Also, used car prices sliding is an ominous sign, and pressure on the consumer won‘t be relieved by retreating rents. Remember not just manufacturing PMI last month, but how fast the latest services PMI reading flipped recessionary. Yet here we are with the Fed not cutting in Jul, and that affects S&P 500 rebound prospects as much as the oil, silver and copper bearish calls .

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