Economic Updates: PPI Inflation Numbers, Meme Stock Resurgence, and AI Advancements

We just got the producer price index inflation numbers, or the prices that businesses face or wholesale prices, and they came out hotter than expected on a month over month basis coming out point five % month over month compared to the point three % estimated. And then core PPI, which is minus Val, the food and energy came in at point five % month over month compared to the point two % estimate. The good news is that last month, the revisions to it were down, so that actually helped a little bit. And then on a year over year basis, those numbers came out of line. But this hotter than expected Pi inflation will likely spill over into tomorrow’s CPI inflation report. Obviously, we have to see. But the market, once the PPI inflation numbers came out, the market started to decline.

This is with the exception of GameStop and AMC. It looks like the meme stock rally is resuming. There’s been pretty much roaring. Kitty started this Game Stop rally back in 2021 and he came back to X and on a X post last night with him pretty much going forward in a chair, pretty much signaling his return and this let it perhaps could lead to the meme stock rally to start all over again.

We had GameStop and AMC up over 70% yesterday and in the pre market, both GameStop and AMC are up over 100% despite the hotter than expected PPI inflation numbers. This will likely help other meme stocks like Blackberry, Riviian, some power, and this will likely lead to more risk on sentiment in the market in general.

We have short seller losses of over $1 billion so far. In may, those short sellers were shorting these meme stocks. So they’re already losing over one $1 billion.

So this is something that we should watch today. It’ll be, it could lead to some volatility in the market. I wouldn’t be surprised, ised, if the market ho in the New York Stock Exchange of NASDAQ calls trading for these stocks or temporarily pauses for a while due to the volatility. I think they did yesterday for a game stop in AMC and not 100%, but I think they did yesterday. And then I also wanted to talk a little bit about a new technology update by OpenAI, ChatGPT 4,0, which is an update to chat Gbts AI use case. And it’s pretty much an up update that you could use Chat GBT eventually for, you know, audio, text and a vision and pretty much my biggest takeaway from this is that it’s the Chat GBT4L will be available for all, but you could almost use it really like a Siri. You could have a conversation with it and it gets pretty emotional.

They were talking to it in a demo yesterday and ChatGPT 4 o gut gushed and said, stop it. So there’s some emotion now in the chatbot. And the fact you could use it like a Siri, like an audio device and a back and forth conversation is pretty huge.

They demonstrated yesterday in their video about Italian to English real time translation through audio. So that’s pretty strong and, and a pretty strong use case for that technology. Dual lingo stock because of that was now fine 5%.

And then there we’re also talking about in the demo video yesterday, it pretty much explaining Deborah wanted to learn help with linear equations or basic algebra. So by talking to the app, it was walking through the strategy of how to get to the answer. And then they were also helping someone co read and interpret programming code in real time through its audio function. So that’s pretty compelling.

And I think this strong use case in AI will be very beneficial for people and businesses. And as I said, the tailwinds for AI should outweigh the headwinds of a CPI over time because AI such a big productivity enhancer. Obviously, we have to see, but seeing these updates from my OpenAI is chat GBT 4 o product were pretty compelling in my opinion.