Inflation report, Elon Musk cashes in and food costs climb

8/10/22

Inflation cools slightly in July. And Elon Musk just “cashed in” on Tesla. It’s still bad, but not as bad. That’s the thought as investors cheer a lighter-than-expected inflation report.

The Dow gained 535 to close at 33,309
The S&P was up over 2%, gaining 87.
The Nasdaq almost 3%, or 360 points.

**********

Back to the Consumer Price Index – it rose a better than expected 8.5% year-over-year for July, and was flat compared to June. While investors took a deep sigh of relief, economists were more skeptical, saying the pace of pricing remains much too high. They expect the Fed to continue to raise rates throughout the year.

**********

We’re getting a break at the gas pump, but not at the grocery store. Food costs climbed another 1.1% in July. Food prices overall have gone up 11% over a year. Eggs jumped 38%. Cereals, baked goods, and dairy products are 15% higher. Fruits and veggies are up 9%.

**********

Elon Musk just cashed about 8 million Tesla shares worth $7 billion. It comes as he fights Twitter over buying the company. Back in April, Musk said on social media he had “no further Tesla share sales planned.”

**********

From Los Angeles, I’m Brian Martin with your BEONDTV After the Bell report.

#BEONDTV #AftertheBell