Tag Archives: Inflation

Stock futures opened near the flat line Tuesday evening as investors looked ahead to more corporate earnings results and another batch of inflation data. Contracts on the S&P 500 was little changed. During Tuesday’s regular session, the blue-chip index rose to a record intraday high before pulling back and ending lower. Each of the Dow and Nasdaq also pulled back, with cyclical areas of the market like airline stocks and financials posting some of the biggest declines.  Concerns over the pace… Source link

Tuesday’s CPI inflation numbers made a splash. The index surged 5.4% over the last year, surpassing expectations of 4.9%. Core inflation (which excludes the volatile gas and food categories) was up 4.5% year-over-year. Both were up 0.9% over last month, the biggest jump since 2008. Here’s what analysts had to say about the report, and what it means going forward. Good news and bad news A big question surrounding inflation recently is whether it’s transitory or more likely to become more… Source link

A string of corporate news also moved individual stocks in London. Photo: Dominic Lipinski/PA Images via Getty Images Stocks in Europe slumped into the red on Thursday as concerns around rising inflation resurfaced after signals from the US Federal Reserve. In London, the FTSE 100 (^FTSE) nosedived 1.9%, hovering just above the 7,000 point mark, while the CAC (^FCHI) was 2.2% down in France, and the DAX (^GDAXI) fell 1.6 % in Germany. “The FTSE 100 fell with miners and banks the principal… Source link

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Wednesday, July 7, 2021 Pricing pressures stopped getting worse for the service sector last month If we wind back the clock to mid-May, the only idea it seemed investors wanted to discuss was inflation.  The argument from many economists and Federal Reserve officials — then and now — was that pricing pressures would prove “transitory,” or that… Source link

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Monday, June 28, 2021 With inflation no longer Greenspan’s ‘q’ word, here’s why generous worker pay matters. Does anyone remember the word “quiescent”? It’s an economic catchphrase popularized by Alan Greenspan, the former Federal Reserve chairman who presided over an impressive run of strong growth and stable inflation. During his lengthy… Source link

Surging inflation is creating a conundrum for the Federal Reserve, economist Nouriel Roubini cautioned on Wednesday, adding that spiking prices will persist and potentially tie the central bank’s hands. With demand soaring, the resulting supply and labor bottlenecks are lighting a fire under prices. Although the Fed insists the effects are “transitory,” Roubini — also known as “Dr. Doom” for his gloomy economic predictions — warned that the central bank won’t be able to tighten monetary… Source link

August 28, 2020. Piracicaba, SP, Brazil. Preparations to fly a hot air balloon at sunrise. Prices of everything; a house in Phoenix, a Ford F-150, a plane ticket to New York, have all gone up. That much is true. Unfortunately pretty much everything else about inflation—a red hot topic these days—is conjecture. And that’s vexing, not just for the dismal scientists (aka economists), but for all of us, because whether or not prices are really rising, by how much and for how long, has… Source link

Inflation has hit the highest level since 2008, when gas prices exceeded $4 per gallon. Overall prices are up 4.9% during the last 12 months, with the biggest jumps in pandemic-affected parts of the economy. A shortage of semiconductors needed for new cars has pushed used-car prices up 30%. Transportation costs, driven by rising airfares, are up 20%, with volatile gas prices up 56%. Surging demand for real estate has pushed home prices up 13%, with many buyers shut out completely. Consumers… Source link

Stock futures were mixed Tuesday morning investors considered a spate of new economic data, including a weaker-than-expected print on consumer spending during the recovery.  Contracts on the S&P 500 and Nasdaq rose, while contracts the Dow fluctuated between gains and losses. Investors considered another batch of key economic data out Tuesday morning, offering looks at both the strength of the consumer and extent of price increases across the supply chain.  The Commerce Department’s May… Source link

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Monday, June 14, 2021 This is not the 1970s. Readers already know: Inflation is running hot.  But Wall Street strategists still remain largely unbothered by the recent acceleration in prices. And financial markets — at least for the moment — agree.  As Yahoo Finance’s Brian Cheung noted last week, yields on longer-dated U.S. Treasuries fell to… Source link