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Stocks up, Consumer prices up, inflation may be temporary

NEW YORK (AP) — Stocks closed higher on Wall Street today, bringing the S&P to another record high and out of the red for the week. The benchmark index rose 0.5%, led by gains in health care and technology companies. The Dow edged up 0.1%. and the Nasdaq Composite rose 0.8%. Bond yields mostly fell despite a much-anticipated report showing a big jump in inflation last month. The yield on the 10-year Treasury note fell to 1.45% from 1.49% a day earlier.

NEW YORK (AP) — Consumer prices rose 5% in May, the biggest year-over-year increase since 2008 and more than economists had expected. While investors have been concerned about inflation for weeks, the May report seemed to reinforce the growing consensus that any increase in inflation will be temporary. A significant portion of the rise in consumer prices was tied to the sale of used cars, for example, which is largely attributed to the fact that many rental car companies are buying vehicles to beef up their fleets as people return to traveling.

WASHINGTON (AP) — The U.S. budget deficit hit a record $2.06 trillion through the first eight months of this budget year as coronavirus relief programs drove spending to all-time highs. The Treasury Department said today that the shortfall this year is 9.7% higher than over the same period a year ago. The report showed that spending from October through May was up 19.7% from the same period a year ago. Government tax revenue however, was up 29.1% compared to the same period a year ago.

UNDATED (AP) — A bankruptcy court has confirmed Hertz’s reorganization plan, which helps clear the way for the car rental company to emerge from Chapter 11 bankruptcy protection by the end of the month. The Florida company, which filed for bankruptcy protection in May 2020, says that its plan will get rid of more than $5 billion in debt and provide more than $2.2 billion of global liquidity to the reorganized company.

NEW YORK (AP) — The Biden administration has exempted most employers from rules for protecting workers from the coronavirus, angering labor advocates who have spent more than a year lobbying for protections. Guidance issued by Occupational Health and Safety Administration indicates that workplaces where people are fully vaccinated no longer need to provide any protection from the coronavirus. It represents a step back from President Joe Biden’s earlier indications that he would reverse the Trump administration’s refusal to issue mandatory protection rules for workers.

Associated Press

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