Stocks started the day lower and Treasury yields were slightly lower following a hotter-than-expected CPI print for May.
The Consumer Price Index rose +1.0% in May and +8.6% from this time last year. Excluding food and energy, Core CPI rose +0.6% in May and +6.0% from this time last year. Real, or inflation-adjusted earnings, remained in contraction at -0.7% in May.
The University of Michigan’s preliminary Consumer Confidence Survey crashed in June as Consumer Sentiment, Current Conditions, and Consumer Expectations all fell. Inflation expectations rose slightly and 5-year inflation expectations rose.
Stocks closed lower and Treasury yields closed higher on the day.