S&P 500 opened more than 2.0% up this morning after the U.S. Bureau of Labour Statistics said consumer prices weren’t up as much as expected in November.
Cramer reacts to the CPI print
Everything is going in the Fed’s way. Almost everything that fell will continue to fall. This is a remarkable number. There are a lot of things in this that have been in the works and they’re finally coming to fruition.
For the month, consumer prices were up only 0.1% in November versus a 0.3% increase expected.
The benchmark index is now back above its 200-day Moving Average.
Is it just another bear market rally?
According to the Mad Money host, today’s report suggests that the oh-so-talked-about “earnings recession” may not play out after all. Still, he continues to recommend “caution” since there’s one key component that the central bank is yet to discipline – and that’s “wage growth”.
If the wages are still high, then this is not as important as we think. That’s why the Fed must raise. Without the wages come down, you have to be careful.
The U.S. Federal Reserve is scheduled for its next meeting tomorrow, December 14th.
Core Inflation (excluding food and energy) eased to 6.0% year-on-year and 0.2% for the month – better than 6.3% and 0.3% in October (read more).
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