Market Brew: CPI, China, and Sector Views

Fresh news and strategies for traders. SPY Trader episode #1233. Hey there, Spy Traders! Your pal Bubba here, ready to break down what's shakin' in the market this fine Thursday, June 12th, 2025. It's 6 am Pacific, so grab your coffee and let's dive in! Alright, the US500 took a little dip yesterday, down 0.41% to 5997 points. But don't sweat it too much! Over the past month, we're still up almost 2%, and a solid 10% from last year. Seems like we're just grindin' higher in a tight range. Now, let's talk sectors. Materials, especially steel, are getting hit a bit due to those MexicoUS talks. Consumer Discretionary and Staples are also feeling the pinch, with retail and travel taking a hit. Airlines are down too, draggin' down the Dow Transports. But hey, it's not all doom and gloom! Healthcare, Energy, Financials, Industrials, and Tech are holdin' their own, showing modest gains. What's been drivin' the market? Well, that cooler CPI print definitely gave us a little boost. Both headline and core inflation came in lower than expected, which is always good news. Plus, the US and China finally agreed on that trade framework they were workin' on. On the rates front, bond yields pulled back after the CPI data, suggesting the market's still expectin' a couple of Fed rate cuts this year, and maybe a couple more next year. In company news, Oracle's reportin' earnings after the bell today, so keep an eye on that. Tesla's had a bit of a rough patch after President Trump mentioned cancelling some government contracts and subsidies, so that's worth watchin' too. And Google's offerin' buyouts to some US employees, which could signal some internal shifts. Now, lookin' at the bigger picture, we gotta be aware of some potential bumps in the road for the second half of 2025. Tariffinduced inflation is still a concern. The OECD's projectin' slower GDP growth for the US, with inflation creepin' up near 4% by the end of the year. So, what does all this mean for you, the Spy Trader? Well, the market's sentiment seems cautiously optimistic right now, but it's a mixed bag. That USChina trade deal and cooler CPI are good signs, but we gotta keep an eye on those tariffs and the potential economic slowdown. Tech's always a sector to watch for growth, and Healthcare, Energy, Financials, and Industrials seem relatively stable. So, here's what Bubba's recommendin'. First, diversify! Don't put all your eggs in one basket, especially with these mixed signals. Keep a close watch on those economic reports like CPI, PPI, and unemployment – they can really shake things up. Stay informed about company events like earnings and conferences, too. And consider lookin' into defensive sectors like Consumer Staples and Healthcare – they might offer some protection if things get bumpy. Remember folks, this is just Bubba's take based on the current news. Market conditions can change on a dime, so always do your own research and talk to a qualified financial advisor before makin' any big moves. Keep your head up, trade smart, and I'll catch you on the next Spy Trader!