A Key Inflation Reading Will Gut-Check the Market

A Key Inflation Reading Will Gut-Check the Market

Here's a look at what I'll be watching this week in the markets. A week after Nvidia topped sky-high expectations and took stocks to new highs in what this newsletter told you would likely be a market-moving event, that optimism gets tested by data on the broader economy. Wholesale Inventories reveal how much stuff is waiting to hit shelves, and the Personal Consumption Expenditure (PCE) Prices release gives insight into how inflation is actually affecting consumers. Supply and demand. Tune in to CNBC Overtime for all the analysis.

Monday, 2/26

Dallas Fed Manufacturing Business Index

The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state factory activity. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.?

Earnings Before the Bell

DPZ: Domino's Pizza


Tuesday, 2/27

Fed Vice Chair for Supervision Barr Speaks

Texas Services Sector Outlook

Dallas Fed Services Revenues

Richmond Services Index

Durable Goods Orders

Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, including transportation items.

S&P/Case-Shiller House Price Index

The S&P/Case-Shiller House Price Index measures the change in the selling price of single-family homes in 20 metropolitan areas.

Conference Board Consumer Confidence

Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism.

Earnings Before the Bell

LOW: Lowe's Companies, Inc.

AZO: AutoZone

AMT: American Tower

SJM: The J.M. Smucker Co.

NCLH: Norwegian Cruise Line Holdings Ltd.

Earnings After the Bell

A: 安捷伦

EXR: Extra Space Storage

FSLR: First Solar

EBAY: eBay


Wednesday, 2/28

Wholesale Inventories

Wholesale Inventories measures the change in the total value of goods held in inventory by wholesalers.

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PCE Prices

The Personal Consumption Expenditure (PCE) Prices release measures the changes in the price of goods and services purchased by consumers for the purpose of consumption. Prices are weighted according to total expenditure per item. It measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

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GDP

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health.

Earnings Before the Bell

PARA: Paramount Global

TJX: The TJX Companies, Inc.

Earnings After the Bell

CRM: Salesforce

MNST: Monster Beverage

HPQ: HP


Thursday, 2/29

FOMC Member Bostic Speaks

Reserve Balances with Federal Reserve Banks

Real Personal Consumption

Personal consumption adjusted for inflation, Personal consumption is divided into two key categories: goods and services. The category of "goods" is further broken down into "durable" goods, which are big-ticket items (refrigerators, television sets, cars, mobile phones, etc.) that will last more than three years, and "non-durable" goods that are more transitory (e.g., cosmetics, fuel, clothing, etc.).

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Personal Income

Personal Income measures the change in the total value of income received from all sources by consumers. Income is closely correlated with consumer spending, which accounts for a majority of overall economic activity.

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Chicago PMI

The Chicago Purchasing Managers' Index (PMI) determines the economic health of the manufacturing sector in Chicago region. A reading above 50 indicates expansion of the manufacturing sector; a reading below indicates contraction. The Chicago PMI can be of some help in forecasting the ISM manufacturing PMI.

Earnings Before the Bell

XRAY: Dentsply Sirona

BBWI: Bath & Body Works

BBY: 百思买

Earnings After the Bell

ADSK: 欧特克

NTAP: NetApp

HPE: 惠普企业服务

COO: The Cooper Company


Friday, 3/1

FOMC Member Bostic Speaks

FOMC Member Daly Speaks

Fed Waller Speaks

S&P Global US Manufacturing PMI

The Manufacturing Purchasing Managers' Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.


Michigan Consumer Sentiment

The University of Michigan Consumer Sentiment Index rates the relative level of current and future economic conditions. There are two versions of this data released two weeks apart, preliminary and revised. The preliminary data tends to have a greater impact. The reading is compiled from a survey of around 500 consumers.

Wolfgang Hammes

Ex-McKinsey Partner, Ex-Investment Banking MD, Book Author, Founder of the "Institute for Future Anticipation and Management" and Founder of the "From Average to Great" Initiative

1 年

I strongly believe that it is important to focus on the big picture and not individual data pieces. The biggest danger is the next - i.e. the second - inflation shock and the collective unpreparedness of decision makers in politics, central banks and businesses/finance to deal with it (with the notable exception of #warrenbuffett ). It is important to understand for people that inflation does not just come and go. It occurs in waves. We are now at the end of the first inflation wave/shock. Therefore, it is important to prepare for the next inflation wave/shock. The second inflation shocks tend to the most ugly ones. During the 1970s inflation crisis, the second shock occurred in 1973/4 and only Warren Buffett was really prepared for it (between 1973 and 1982 Berkshire Hathaway stock increased by about 900 % while the S+P 500 could not even beat accumulated inflation). For those interested in this topic, here is a short informational YouTube Video I did a few weeks ago. Hope it helps to understand this issue better. https://youtu.be/9QO0qsjXJO4

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Bennett Mann

Valuation Specialist | Business Broker | Business Development | Data Insight Storyteller | Let’s connect ??

1 年

Thursday’s PCE reporting will definitely be interesting and very telling on how the Fed will react.

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