Good morning!

With the recent flurry of inflation data and the Federal Reserve’s meeting now in the rearview mirror, investors are facing a quiet, split week, thanks to the close of markets on Wednesday in observance of Juneteenth. Here's what's happening...

• On Monday, US stocks remained close to their all-time highs, entering a week of trading abbreviated by the upcoming Juneteenth holiday. Investors are speculating whether the robust bull market that has characterized 2024 can sustain its momentum. The Nasdaq Composite, known for its concentration of tech stocks, edged up by 0.1% following a series of record-breaking closes—thanks Apple!—marking its fifth consecutive peak last Friday. Similarly, the S&P 500 saw a modest increase of 0.1%. The Dow Jones Industrial Average managed to recover from its initial dips, ultimately closing nearly unchanged. The relentless surge in stock prices, particularly driven by the technology sector, has prompted financial analysts to reassess their forecasts for the S&P 500’s performance. Evercore ISI has raised its end-of-year projection to 6,000, and Goldman Sachs has adjusted its estimate to 5,600, following the index’s first-ever breach of the 5,400 mark the previous week. *

• Hot off the presses this morning, the U.S. retail sales report shows only a slight increase during May, indicating a deceleration in consumer spending as the summer approaches. This trend may reinforce expectations of a Federal Reserve interest rate cut in the fall. The Commerce Department reported that headline retail sales inched up by 0.1% from April, totaling $703.1 billion—a figure that fell short of the anticipated 0.3% increase predicted by economists. Additionally, the sales figure for April was adjusted downward to a 0.2% decrease from the initially reported flat growth. Moreover, the control group’s sales, which are a key indicator as they exclude variables such as autos, building materials, office supplies, gas stations, and tobacco, climbed by 0.4% for the month. This too did not meet the 0.5% rise projected by analysts. The control group’s sales are significant as they contribute to the government’s GDP calculations. **

• Gas prices are cheaper than last summer and miles away from the nightmare highs of 2022, when prices peaked at a record of $5.02 a gallon nationally, helping to propel the national inflation rate to 9% for the first time since the early 1980s. While today's gas prices today are not cheap, the current national average for regular gas, $3.46 a gallon, is down $1.56 from the June 2022 record and down 13 cents from this point last year. Gas prices peaked this spring at $3.68 a gallon on April 19. Lower gas prices have also played a central role in helping to drive down inflation. The Bureau of Labor Statistics said last week that monthly consumer prices were unchanged between April and May for the first time in nearly two years and that one of the biggest catalysts was the fact that prices at the pump have become cheaper. ***

The financial advisors at Miramontes Capital diligently keep up with anything that can impact our clients' finances and tap into more than 175 years of combined investment experience. We do our all to keep your money protected and growing. If you think you might benefit from our financial experience and oversight, contact us today for a FREE, no-obligation consultation. Just call (800) 460-1595. Until next week...

Investment Advisory Services offered through Miramontes Capital, LLC. Securities offered through Balanced Security Planning, Inc. Member FINRA/SIPC. Miramontes Capital, LLC and Balanced Security Planning, Inc. are separate companies affiliated through common control. This newsletter is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Miramontes Capital, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital, LLC unless a client service agreement is in place.