NEW CPI DATA INFLATION REPORT EXPLAINED...

[00:00:00] Speaker 1: So what did the CPI data report come out to today? What's going on team? It's Ricky with Techwood Solutions. Today is March 14th, 2023 and the February CPI data report was just released and it came in at 6%. In this video, we're going to be breaking it down. I'm going to get straight to the point and if you appreciate and like this video, please make sure you drop a thumbs up and you consider subscribing as I upload new videos every single day about the stock market. So as of right now, NASDAQ market is up 1.7%. And to my surprise, that's not very much for a CPI data report, but we can talk about that shortly after we talk about the CPI data report. So first off, I want to make sure you guys are all aware of where you can find this yourself. This is at bls.gov forward slash CPI. You can see that in this area, it says that CPI for all items rise 0.4% in February as shelter increases. And this was released today, 3-14-2023. We click on the PDF and then it populates this. We can see that all items, again, saw an increase of 6% before seasonal adjustment, meaning our current inflation rate went from 6.4% all the way down to 6% as expected. Now, how exactly is this calculated? Well, we actually live streamed the CPI data report for those that didn't tune on in. Again, another reason to subscribe to the channel and make sure you turn on your post notifications, but pretty much we saw an increase in the month of February of 0.4%. So what that means is we add 0.4% and we take away the old month of February in 2022, right? This was 0.7%. We take away that inflation report and now we added this new one. There's an exact formula on how this is all calculated, but nonetheless, again, that is what it was that was added. Now, how is CPI or what saw increase, what saw decrease? You can see that February, this is the line item, or this is for the month of February and these are all the line items. We can see that our biggest drop that we saw in the month of February, supposedly, you can see it right on over here, supposedly it was utility gas piped services. Another big drop of 7.9% if we go all across was fuel and oil. This was very surprising to me because at least in my area for the month of February, oil prices were up, right? Gas prices were up. They're up in the month of March, at least where I live. And I was asking a couple of our LPP members and they were saying the same thing, right? There were a couple of people that were saying to the Midwest, we did see a slight drop and or they're staying the same. But nonetheless, according to this report, we saw a huge drop there and a huge drop in utility gas pipe services. We also saw a significant drop if you guys go across the board and use cars and trucks, which that one doesn't surprise me too much. It's on negative 2.8% drop. Now, one of the things that I want to talk about is, well, what does this mean, right? Well, based off of our current inflation rate, that puts us now at 6%. Why is the market, right? At least in my opinion, the market is not reacting in a super bullish way. But this is a good report. This inflation report came in as expected. We went from 6.4% to 6%. We dropped. Inflation is dropping according to this report. So why isn't the market not up 3%, 4%, 5%, right? It's up 1.8%. But we even saw a nice little pullback shortly after the report was released. Why? This is just my opinion. I think it's because of what's going on with the banks right now. I think institutions are still in fear of what's going to happen. I think that there's uncertainty in the market right now. So this is a good CPI data report because it came in as expected. But we still have this up and coming interest rate hike, which is again, very unfortunate. But on March 21st and March 22nd, we will be live streaming it. But it is an interest rate hike that's going to be happening, if I'm not mistaken, by next week. And the Federal Reserve will determine how much they will be raising interest rates. And that will affect the banking system. And because of that fear, again, kind of going back to the very core of things, why is the market not seeing as much buying activity as it would have on other reports? Uncertainty. But what makes up most of the market? And again, this is just my opinion. What makes up most of the market? Well, banks and institutions, right? A lot of those make up, I mean, they trade with tens of millions, hundreds of millions, some with billions of dollars. So if bank and institutions are not feeding into the CPI data report, then maybe what is that telling us? Is there something going on in the back end where there's they know something that we don't? I'm just very surprised that the market is not rising as much as it normally would have if none of this bank stuff was going on, right? There has to be some form of fear and uncertainty that is still in place. And this is why I think, and again, this is 100% my opinion, this is why I think, I mean, tomorrow is the PPI data report, which is the producer price index. This is why I think that the market will still be uncertain. And I think that the market will return to being on the bearish side of things because of the uncertainty of what's going on with the banks. And until the Federal Reserve announces what their next interest rate hike is going to be, if there's going them even be one at all, will determine if the market actually begins to recover or not. I think that there's too much fear being injected into the market and institutions are playing it safe right now where they're not feeding into these specific reports because they have a much more important issue to focus on. And that's what the Federal Reserve is going to do. So unfortunate. Nonetheless, it is still a very impressive day for the bulls. I know the bulls have been pretty much been getting beat up for the past week to week and a half. So I wanted to congratulate all of you guys. Again, if you begin to see a change of direction, don't be afraid to lock in profits. Your job is not to be perfect. Your job is just to, again, get in and get out at effective price points. So I appreciate your time. I hope that this video pretty summarized what the CPI data report was and also some of my opinions about what I think about the overall market. And you guys can feel free to share your thoughts down in the comment section. I hope that I earned a thumbs up. Please consider subscribing, turn on your post notifications. I will be live streaming significant economic reports as time goes on. And if you don't want to miss out on those, then again, all you literally have to do is subscribe. 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And that's that first link in the description down below. Like always, let's make sure that we end the year on a green note. Take it easy, team.