Table of Contents

• US CPI Data

• GameStop

• Apple

Top Stories Today

Economy & Finance

US CPI Data

The U.S. Consumer Price Index (CPI) data for May 2024 is in the news because it showed no monthly increase, indicating a slight easing in inflation. The CPI remained flat on the month but rose 3.3% year-over-year, slightly below economists' expectations of a 0.1% monthly gain and a 3.4% annual rate. Core CPI, which excludes food and energy prices, increased by 0.2% monthly and 3.4% annually, also below forecasts.

Despite the overall lower inflation numbers, shelter costs continued to rise, with a 0.4% monthly increase and a 5.4% annual increase. Energy prices fell by 2%, including a 3.6% drop in gasoline prices, while food prices saw a modest 0.1% increase. The release of this data influenced financial markets, leading to higher stock futures and lower Treasury yields.

The Federal Reserve is closely monitoring these inflation trends as it decides on future monetary policy. Market expectations for a rate cut in September increased following the CPI report, though Fed officials have indicated that they need to see sustained positive inflation data before making policy changes.

GameStop

GameStop is in the news today after completing an "at-the-market" equity offering, raising approximately $2.14 billion. This development follows a recent livestream by meme stock influencer Keith Gill, also known as "Roaring Kitty," his first in three years. During the livestream, which had over 600,000 viewers, Gill discussed GameStop and contributed to a significant market reaction, with GameStop's stock closing nearly 40% lower.

GameStop sold the maximum 75 million shares under its program, with an average sale price of around $28.50 per share. This event follows the recent financial disclosures from GameStop, which included disappointing first-quarter earnings and a secondary share offering to bolster cash reserves. Gill's influence and insights from the livestream have impacted investor sentiment and market activity surrounding GameStop's stock​.

Technology

Apple

Apple is in the news today because it briefly became the world's most valuable company, driven by excitement over its new artificial intelligence initiatives. During Wednesday morning trading, Apple's market cap reached $3.244 trillion, surpassing Microsoft. This surge followed Apple's announcement at its developers conference about integrating generative AI technology across its apps and devices, including writing assistance and AI-generated emojis. Despite this peak, Apple did not maintain its lead by the end of the trading day, with Microsoft finishing ahead. Analysts from Morgan Stanley, Evercore, and Bank of America believe these AI advancements, termed Apple Intelligence, will drive new iPhone sales and potentially initiate a significant upgrade cycle​.

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