Stocks Rebound Late in the Week as Earnings and Retail Data Offset Tariff Concerns

Stocks began last week mostly lower on mixed bank earnings and rising inflation data. While the June Consumer Price Index was in line with expectations, it is worth noting that some imported goods, such as coffee, furniture, clothing, and appliances, climbed higher, which could be due to increased tariffs. However, favorable earnings data toward the end of last week and a better-than-expected retail sales report helped push stocks higher. For most of the week, investors weighed the White House’s push for higher tariffs on the European Union against strong corporate earnings and some favorable economic data. Among the market sectors, Utilities and Information Technology outperformed, while Health Care, Materials and Energy lagged. Long-term bond prices changed little, keeping yields steady. Crude oil prices slipped lower. The dollar edged higher for the second week in a row. Gold prices fell for the first time in the last three weeks.

Inflation Picks Up in June, Led by Shelter and Energy

The Consumer Price Index increased 0.3% in June after rising 0.1% in May. The June advance was the highest monthly increase since January 2025. Over the last 12 months, the CPI increased 2.7% after rising 2.4% over the 12 months ended in May. Prices for shelter rose 0.2% in June and were the primary factors in the monthly increase. Energy prices rose 0.9% in June as gasoline prices increased 1.0% over the month. Prices for food increased 0.3%. Prices less food and energy (core prices) rose 0.2% in June following a 0.1% increase in May. Core prices rose 2.9% over the last 12 months.

Eye on the Week Ahead

Most of this week’s economic data focuses on the housing sector. The June reports on existing-home sales and new-home sales are available this week. May saw existing-home sales tick up 0.8%. Inventory of existing homes available for purchase increased in May. Higher mortgage rates continued to hinder sales. Conversely, new-home sales fell more than 13.0% in May. Despite the slowdown, new home prices continued to increase in May.