DC Lite #127

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1. Immigration effects. "The labor market would have been substantially tighter if not for the uptick in immigration. A tighter labor market in the absence of immigration would have led to higher inflation...Our economists find that core PCE inflation likely would have been 25-50bps higher."

2. Spending growth. "The consumer remains more likely to cruise than crack … we expect real spending growth to remain healthy."

3. Flash PMIs (II). "The biggest concern in today's PMI data was the prices print. Not good news for those hoping for inflation to decelerate."

4. Data vs. feelings. "The S&P 500 $SPY suffered a bearish engulfing candle at a new high. Even worse (on a chart), it gapped to a new high then closed at a 5-day low. If you sold based on these patterns any other time, you'd be a loser pretty much every time."

5. Tech EPS. "S&P 500 Technology sector earnings hitting all-time highs while majority of global equities have not.  You can debate the valuation, but they have been of the strongest earnings engines in the world over the last 20 years. At the end of the day, stocks follow profits."