Historical Market Performance Following Higher Than Expected CPI Data

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 |  Includes: IVV, SPY
by: Bespoke Investment Group

Hickey and Walters (Bespoke) submit: This morning's CPI report (MoM) came in slightly higher than expected (0.2% vs estimates of 0.1%). From our historical Economic Indicators Database, we looked back at all monthly CPI reports since June 1998 to see how the S&P 500 and its 10 major sectors have typically performed on days when the report came in higher than expected.

As shown below (click image to view), the market has typically reacted negatively to a stronger than expected CPI report, averaging a decline of 45 bps on the day. The sector that has performed the worst is Financials and the sector that has held up the best is Health Care.

click to enlarge
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