Sector Spotlight: CPI Numbers Released

Market Recap For July 13th, 2022

Wednesday’s market started off lower, but very quickly worked itself back into the green at one point. However, by day’s end, stocks finished in the red. CPI numbers were released, showing inflation rose to 9.1% in June, adding volatility to an already anxious market.

Yesterday’s close finished with a mixed tone. Markets came off their lows, and the S&P held 3800, but the final hour was less than thrilling.

Yesterday’s Sector Performance

As the sectors jockey for position, Discretionary was the one sector noticeably in the green.

Industrials were the weakest, followed by Services.

Five-Day Sector Performance

Energy is now the lone sector still in the green over the past week.

Communication Services are now the bottom sector.

ETF Trade Watch

Consumer Discretionary Select Sector SPDR (XLY)

Energy Select Sector SPDR (XLC)

The market left a confusing message at yesterday’s close in anticipation for what the CPI reading would look like. However, if stocks head higher, then it would seem that the XLY might outperform.

But, if things take a turn for the worst, the XLC could be one of the hardest hit. It would be wise for traders and investors alike to be wary of going long at these levels. Even if the market experiences a rally to finish out the week, I have my doubts of it being a sustained rally.