1. Canada’s Inflation Cools But Is It Enough?
Canadian inflation for the month of June came in cooler than expected.
Great, right? Time to cut rates?
Don’t be too quick to jump to that conclusion.
Oil prices are starting to creep higher again as the circus continues.
2. Why Is No One Talking About Data Centers?
It’s actually surprising how little attention the backlash against data centers is getting.
You would think these headlines would receive national attention. But nope.
There were 142 protests across 42 states this past weekend. Not much noise about it anywhere.
Again, AI is here to stay. However, the CAPEX numbers being thrown around could easily be impacted. Delays and project cancellations could also affect valuations.
3. Oil Is Starting to Look Interesting
Oil has bounced since the U.S. reignited the war with Iran. Things continue to escalate.
At the same time, Ukraine is targeting Russian energy infrastructure and related assets. That could add further pressure to oil prices.
On the technical side, WTI reacted to its 50-day moving average this morning.
It’s worth watching. If it breaks higher, it has the potential to move past $90 very quickly.
Keep in mind, though, that this market is being driven by headlines, so expect plenty of volatility.
4. Gold Is Fighting for $4,000
Bond yields are rising.
The U.S. dollar is catching a bid.
If that trade continues, it will likely put pressure on gold, silver, and the broader commodity space.
We’ve been closely watching gold. The $4,000 level is becoming a real battleground. A consistent close below it could attract more sellers.
As we’ve been saying for a while now, the silver chart still needs work. Technically, it looks broken.
5. Earnings Season Means Higher Risk
Earnings season is underway.
The next few weeks are going to be busy.
It might be a good idea to review what you own and see whether earnings are coming up. During earnings season, stock-specific risk increases.
The S&P 500 closed below its 50-day moving average on Friday. Watch how it reacts today. Once again, a consistent close below the 50-day moving average could bring in sellers.
Over the past few years, the S&P 500 has been very reactive around this level.