Every weekend, I recap “news you can use” from the week — a handful of quotes from major (and often expensive) financial news sources — so you can stay up to date on the news that affects your money without spending a dime and in less than a minute.
Here’s an overview of what happened this week.
US Consumer Sentiment Picks Up on Easing Gasoline Prices (June 12, Bloomberg):
The University of Michigan’s preliminary sentiment index increased to 48.9 in June from a record low 44.8 in May, according to the survey released Friday. That was higher than most economists in a Bloomberg survey expected, but it’s still the second lowest reading in data back to the 1970s.
While gasoline prices are still above pre-war levels, the drop seen in recent weeks led Americans to be less pessimistic about their personal finances.
Oil Prices Fall Sharply After Iran’s Foreign Minister Says Deal ‘Has Never Been Closer’ (June 12, Barron’s):
Oil prices were dropping to their lowest levels in months Friday after President Donald Trump said the U.S. was nearing a peace agreement with Iran.
West Texas Intermediate futures were down 3.1% at $84.98 a barrel. The last time Brent settled in the $88 range was on March 10, according to Dow Jones Market Data.
US Jobless Claims Jump to 229,000, Highest Since February (June 11, Bloomberg):
Even after the recent gains, the current level is well below the average of the five years preceding the pandemic. Economists will look for more than a couple of weeks of data before reassessing the recent stability of the labor market.
At the same time, high-profile layoff announcements have mounted across the tech sector, with many companies citing artificial intelligence as they cut white-collar roles.
Wholesale prices rose 1.1% in May, more than expected, on surge in energy (June 11, CNBC):
The producer price index increased a seasonally adjusted 1.1% in May, putting the 12-month wholesale inflation rate at 6.5%, the highest since November 2022.
Excluding food and energy, the so-called core PPI accelerated 0.4%, compared with the consensus view of 0.5%, indicating that rising fuel prices are causing much of the inflationary burden.
Gold, silver and bitcoin fall as traders up Fed rate hike bets (June 10, CNBC):
Ewa Manthey, a commodities strategist at ING, told CNBC that gold and silver are coming under pressure as market focus shifts back to rates and inflation rather than pure safe-haven demand.
“The escalation in the Middle East is pushing oil higher and lifting inflation risks, which in turn is reinforcing expectations that central banks stay tighter for longer,” she said. “That’s pushing real yields higher — a clear headwind for non-yielding assets like gold and silver.”
Inflation Heated Up to 4.2% in May, as Energy Costs Continued to Bite (June 10, Wall Street Journal):
Prices excluding food and energy categories—the so-called core measure economists watch in an effort to better capture inflation’s underlying trend—rose 2.9% on the year. That was in line with forecasts, and was slightly hotter than 2.8% the previous month.
Home sales surged in May to the highest level since December (June 9, CNBC):
Existing home sales in May rose 3.2% from April to a seasonally adjusted, annualized rate of 4.17 million units, according to the National Association of Realtors. Economists were expecting less than a 1% gain.
With a still tight supply, prices continue to rise. The median price of an existing home sold in May was $429,300, an increase of 1.3% from the year before and a record high price for the month.
US small business sentiment falls in May as inflation worries mount (June 9, Yahoo Finance):
The National Federation of Independent Business said on Tuesday its Small Business Optimism Index slipped 0.6 to 95.3 last month, falling further below its 52-year average of 98.0. The survey’s uncertainty index rose three points to 91. It is running well above its historical average of 68.
“Uncertainty is the enemy of growth and investment, and it is high,” the NFIB said in a statement.
Oil prices fall after U.S. Energy secretary says Hormuz ship traffic is increasing (June 9, CNBC):
U.S. crude oil futures were down about 2% to $89.40 by 8:05 a.m. ET.
Trump told reporters late Monday that a deal to end the war with Iran could come in “two or three days” and the Strait of Hormuz would open “immediately” after an agreement. He has repeatedly said a deal with Tehran to reopen Hormuz is close, but such an agreement still has not materialized.
BofA Warns It’s Time to ‘Take Profits’ as Red Flags Multiply (June 8, Bloomberg):
Investors should exercise caution regarding US stocks as an increasing number of “bear market signposts” point to an approaching top, according to Bank of America Securities.
There are “too many red flags,” strategists led by Savita Subramanian wrote in a note dated June 5. “Take profits,” they advise.
Trump’s Washington is suddenly moving toward taking stakes in AI companies. Will it actually happen? (June 8, MarketWatch):
Trump on Friday told reporters on Air Force One that his administration is looking at a situation “where the American public essentially becomes a partner with the companies,” as he touted his deal with Intel last year that resulted in a 10% government stake in the chip giant. Trump also said big AI companies could visit the White House this week to talk about a state of affairs “where the American people can benefit from the success of AI, and by doing that, they’re going to like it better.”
