Yesterday was another more impressive session under the hood than on the surface. The S&P 500 (SPX) finished +0.55%. Tesla (TSLA) shook off negative comments from Morgan Stanley (MS), which surged higher for the second session in a row. 

Heat Map & Breadth

The Heat Map was very impressive, with “Mag Seven” leading the way, but Technology (XLK) superstars of yesterday are now in the mix, as International Business Machines (IBM) broke out and Intel (INTC) enjoyed the most significant percentage gain.

Energy (XLE) continues to regain lost ground, while Real Estate (XLRE) looks intriguing. There were glimpses of profit-taking in individual high-flyers, but the cash stayed in the fray, looking for opportunities.

The market breadth was overwhelmingly bullish. Advancers, new highs, and up volume (especially on the NASDAQ Composite) crushed it.

Market Breadth	NYSE	NASDAQ
Advancers	1,705	2,639
Decliners	1,073	1,809
New Highs	51	145
New Lows	16	45
Up Volume	2.28 billion	8.19 billion
Down Volume	1.61 billion	2.15 billion

The NASDAQ Composite

The NASDAQ closed in the shadow of an all-time high on strong (convincing) volume.

The Tide

Most factors finished in the green, led by small-cap value.

Momentum struggled, which goes to my earlier point of smatterings of profit-taking.

ETF Mardi Gras

Everything was higher yesterday. There is an excellent but cautious vibe that’s spreading.

Today’s Inflation Read

This morning, everyone will be on pins and needles for the Consumer Price Index (CPI) report.

This low-key party could turn into a rave.

Today’s Session

As the great Gomer Pyle might say, “surprise, surprise surprise.”

Oddly enough none of the news and developments of the morning are surprising to me, but the “experts” seemed to have been caught flatfooted again.

The real issue is not enough common sense and too much personal animosity driving important decision-making and tainting professionalism.

CPI

Sort of like Godot, we are still waiting for the tidal wave of inflation.

Month to Month:

• Headline +0.1, consensus +0.2
• Core +0.1, consensus +0.3

Year to Year:

• Headline +2.4, consensus +2.5
• Core +2.8, consensus +2.9

Lots of folks were told auto prices were going to the moon.  Too bad they listened to the media; they could have saved a few bucks waiting a couple of months

US & China Makeup

Speaking of waiting months, it looks like this only took a few weeks.  There is a detente settling in the US and China trade relationships.  Today’s announcements make the rest of the trade deal easier to work out, and should send a signal to other nations.

Comments

"The real issue is not enough common sense and too much personal animosity driving important decision-making and tainting professionalism." This is one of the most succinct points I have ever heard regarding the confirmation bias of liberals driving huge investment losses and yet never considering that they could actually be wrong and might change course at least on their investment thesis. Wisdom would point to a review of foundational metrics like tax cuts are not incentives and tariffs are inflationary and many others they may need serious adjustment... It sure is fun to make money from the short squeezes. I am puzzled by with the Tariff agreement with China we are not taking off like a rocket ship... C. Raymond Weldon on 6/11/2025 10:39:21 AM

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