The bond market and the stock market are giving conflicting signals about the June CPI report. While the 30 year bond is near its March lows, topping out in late June, the S&P 500 index is at its highest level since April 2022.
While equity investors are convinced that inflation has been defeated, bond traders are not convinced yet. The CPI report on Wednesday and the PPI report on Thursday will certainly provide more clarity on who is leaning the right way.
Monday’s strong close parlayed into a good day for the index. In both the premarket and regular session, the index spent very little time in the red and meandered its way past Friday’s high (4476), reaching 4478.50, but retreating into the close.
It was still good enough for the second highest closing price since April 2022 as the index tacked on 29.25 handles at the closing price of 4473.50.
Among the top components, Meta Platforms Inc. (NASDAQ: META) was the biggest winner of the top components. The issue, which entered the $300 handle for the first time since February 2022 and retreated, added $4.19 or 1.4% at the closing price of $298.29.
That was over double the cash index’s gain of 0.67%.
On a risk-on day, investors avoided Johnson & Johnson Inc. (NYSE: JNJ) making it the biggest loser of the top components. For the session, the issue declined by $0.88 or 0.55% at the closing price of $158.63.