Markets remain in a holding pattern as all eyes turn towards Wednesday’s CPI Print. In other news, reports from Tuesday suggest AI demand will remain robust through the end of 2024 due to tight supply of AI memory chips. GameStop has also re-emerged in our consciousness up as high as +70% as it returns to meme consciousness. Producer prices are released for May before the bell tomorrow.
Eco Data Releases | Tuesday May 14th, 2024
| Date Time | Event | Survey | Prior | Revised | |
| 05/14/2024 06:00 | NFIB Small Business Optimism | Apr | 88.2 | 88.5 | — |
| 05/14/2024 08:30 | PPI Final Demand MoM | Apr | 0.30% | 0.20% | — |
| 05/14/2024 08:30 | PPI Ex Food and Energy MoM | Apr | 0.20% | 0.20% | — |
| 05/14/2024 08:30 | PPI Ex Food, Energy, Trade MoM | Apr | 0.20% | 0.20% | — |
| 05/14/2024 08:30 | PPI Final Demand YoY | Apr | 2.20% | 2.10% | — |
| 05/14/2024 08:30 | PPI Ex Food and Energy YoY | Apr | 2.30% | 2.40% | — |
| 05/14/2024 08:30 | PPI Ex Food, Energy, Trade YoY | Apr | — | 2.80% | — |
S&P 500 Constituent Earnings Announcements by GICS Sector | Tuesday May 4th, 2024
| Co. Time | Period | Actual | Estimate |
| HD 9:00 | Q1 2025 | — | $3.59 |
HD’s earnings release highlights challenges to the broader consumer sector (ETF: XLY) as the stock has long been a bellwether. Both the stock and the sector have been underperforming over the longer-term and are on the cusp of multi-year relative lows vs. the S&P 500 index. We’ve advised a short position in XLY for the month of May. Outside of AMZN and CMG, weakness pervades through speclty retail, restaurant and fast food chains, auto industry and now the housing and durables industries as rising rates persist as a headwind there.
HD (200-day m.a. | Relative to S&P 500 )
Price has retraced the entire break out above resistance. Relative performance is on the cusp of a multi-year low.
XLY (200-day m.a. | Relative to S&P 500 )
The sector is very similar in dynamics to the HD chart as investors have favored other exposures over the longer-term despite the bull market.
