Don’s Notebook July 12, 2018

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A big increase in the CPI would have emphasized ongoing inflation risks: a tight labor market, high energy prices, and the initial imposition of import tariffs. However, today’s report showed consumer prices edged only 0.1 percent higher overall in June and 0.2 percent for the core (ex-food ex-energy).

  • Initial jobless claims fell a sizable 18,000 in the July 7 week to a 214,000 level that is just below analysts’ consensus range.

Futures are higher this morning after yesterday’s session that saw the biggest declines of July for the Dow and the S&P 500 and a slide by the Dow back into negative territory for 2018.

Overnight global markets have improved:

  • The MSCI Asia Pacific Index halted two days of losses, while Japan’s Topix index closed 0.5 percent higher.
  • China’s Shanghai Composite Index climbed 2.2 percent.
  • In Europe, the Stoxx 600 Index added 0.4 percent, and the euro eked out a gain.

Comcast Corp. increased its takeover bid for Sky PLC to $34 billion, topping an offer from Rupert Murdoch’s 21st Century Fox Inc.

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