Stocks closed higher yesterday with both the S&P 500 and Nasdaq notching new all-time high closes.

There was not much in the way of economic reports yesterday, so all the attention was on Apple discussing their AI plans at their annual Worldwide Developers Conference (WWDC).

Apple unveiled they plan on rolling out several different AI features with what they are calling 'Apple Intelligence.' One of the features is an enhanced Siri, with the ability to perform hundreds of additional actions across Apple and other third-party apps.

This will be available in the fall when they release their iOS 18 and macOS Sequoia. But will only be available for the most current device models such as the iPhone 15 series with A17 Pro Chips, and iPad and Mac users with the M1 chip or later.

They have many other features planned, including new writing tools which can "rewrite, proofread, and summarize text," in several apps including Mail and Notes.

Apple CEO Tim Cook said "we think Apple Intelligence is going to be indispensable to the products that already play such an integral role in our lives."

Apple investors and iPhone watchers are hoping the release of these new AI features, especially since they appear to be aimed at only those with new devices, will nudge those with earlier models to upgrade into new ones, and jumpstart flat to falling iPhone sales.

The two-day FOMC meeting begins today, and concludes tomorrow with the FOMC Announcement, followed by the customary Fed Chair Press Conference.

While nobody is expecting the Fed to cut rates this week. Or at their July meeting. There's good odds on a rate cut in September. But everyone will be listening for any clues as to what the Fed has in mind regarding when interest rate cuts will begin and by how much.

Before we hear from the Fed on Wednesday afternoon, however, we'll get the Consumer Price Index (CPI) inflation report on Wednesday morning. The last CPI report (retail inflation) showed the core rate (ex-food & energy) at 3.6% y/y vs. the previous month's 3.8%. At the moment, the headline numbers are expected to come in at 0.1% m/m vs. last month's 0.3% pace, while the y/y rate is expected to come in at 3.4%, in line with last month. The core rate is expected to be up 0.3% m/m, just like last month, while the y/y rate is expected to fall slightly to 3.5% vs. last month's 3.6%.

But the fun doesn't stop on Wednesday, as we'll get another inflation report on Thursday with the Producer Price Index (PPI). The last PPI report (wholesale inflation) came in at 2.4% y/y, which was in line with the previous month's 2.4% pace.

In each of these reports, we'll see if disinflation has resumed, if it stalled, or worse, if it's creeping back up. Either way, it will help inform the Fed on what they will do regarding rates this year.

Gladly, the market has been doing fine without the Fed. With a resilient economy, a strong jobs market, upward trending sales and earnings estimates, and household incomes remaining near record highs, there's plenty to love about stocks right now, even without rate cuts.

Then add in the favorable cyclical tendencies with the 4-year Presidential cycle that shows that year 4 (that's this year) is the second-best year of all four years (second only to year 3 which was last year), and it looks like there's a lot more upside to go.

See you tomorrow,