CPI stands for the "Consumer Price Index" which just measures the change over time in the prices paid by consumers for a good or service.
The CPI data is due on Friday July 10th and it is an important gauge of US prices and their overall trend. It can also signal inflation or
deflation that can effect the stock market.
Overall, it is one of the most important and most watched indicators for the economy. It is used to adjust wages, retirement benefits, tax brackets and is a great inflation measurement tool.
“While median returns for the S&P 500 have been right around the flatline over the last two years on CPI days, more recent returns have been much weaker,” wrote analysts at Bespoke Investment Group
The market dipped quite a bit today because of the nervousness around the potential reports, which are expected to rise.
I"I view it as mixed. If the total is high and the core number shows some sort of drop, I actually think the markets could rally on that because it'll show that things are kind of rolling over a bit." - Peter Cruz, President of Chase Investment Council
The market preemptively prepared for bad news today, but depending on the reports and numbers overall, it could see a bounce tomorrow.