The Day at a Glance | July 11 2024

The Top

• In the US, June´s CPI inflation surprised to the downside.

• In Mexico, at 9:00 am today, the Central Bank of Mexico´s meeting minutes corresponding to June´s decision will be published.

• US President Joe Biden will attempt to quell growing opposition within his own party this Thursday by sending his advisors to meet with Democratic senators to bolster their support and will hold his first solo press conference in almost eight months.

• According to a Reuters survey, the ECB is expected to cut interest rates two more times this year, in September and December.

• Oil prices remained stable on Thursday, with the benchmark Brent crude above $85 per barrel amidstmixed demands regarding demand.

Economic Environment

In the US, June´s CPI inflation surprised to the downside. The Bureau of Labor Statistics (BLS) published its consumer price inflation figures for June, which recordeda deflation rate of -0.1% month-over-month, below the market consensus of 0.1% month-over-month. The decline in prices logged in June was mainly due to a 3.8% month-over-month drop in gasoline prices. Meanwhile, core inflation, which excludes energy and food, recorded a monthly 0.1% increase in June, also below the consensus expectation of 0.2%. On an annual basis, general inflation decreased from 3.3% in May to 3.0% in June, and core inflation dropped from 3.4% to 3.3%. The CPI inflation figure setting below market expectations suggests that the PCE inflation reading, an indicator closely followed by the Federal Reserve, will also be very low in June, increasing the likelihood of a cut being carried out in the federal funds rate as early as September. After the release of the inflation data, the 10-year Treasury bond yield fell 10 basis points to 

Markets and Companies

Main US stock indices are logging mixed figures, following the positive streak in previous sessions that led the S&P 500 and Nasdaq indices to reach new record levels. Today, investors are digesting the US consumer inflation figure for May, which stood at 3.0% year-over-year, while core inflation was 3.3%, both below expectations. This figure backs the expectation that the Federal Reserve will cut interest rates in September. In Europe, stock markets are trading higher, as are Asian markets; the Japanese Nikkei 225 index surpassed 42,000 points for the first time.

The yield on the 10-year Treasury bond fell to 4.19% in response to the US consumer inflation figure.

In Mexico, the IPC is trading higher and stands at 54,368.3 points.

The exchange rate of the peso against the dollar is at 17.85, after closing at 17.82 yesterday.

The National Association of Supermarkets and Department Stores (ANTAD for its acronym in Spanish) reported sales results for June. During June, same-store sales (SSS), which include those with more than one year of operation, recorded a nominal +3.3% increase. Total store sales, which include both existing stores and those opened in the last 12 months, increased by +6.4% compared to the same period last year.

Corporate News

• Delta shares fell nearly 9% after providing revenue guidance below expectations for the current quarter.

• Costco shares rose as the company announced an increase in membership fees.

• Pfizer announced that due to positive results in its trials, it will continue developing its weight loss pill.