A Weakening Consumer and Other Signs of Economic Stress

Equity markets were subdued this week with the S&P500 and Nasdaq held at bay by a break in the upsurge in the price of Nvidia (NVDA) which, on Thursday and Friday (June 20 and 21) gave back about -6.6% in its price (but still up 155% year to date!). The table shows the results of […]

When “Bad News” Becomes “Good News”

While Tuesday’s Producer Price Index (PPI) for April came in hotter than expected (+0.5%), markets took the bad data in stride, perhaps because the year/year change on the headline index was still only 2.2% (2.4% for the “core,” i.e., ex-food and energy). Another reason for the lack of market volatility from the release may have […]

Fed’s Dilemma – Hotter Inflation & a Cooling Economy + Why Inflation is so Hateful

Inflation was the main concern of markets this week. On Tuesday (March 12th) Consumer Prices (CPI) came in slightly hot, but within market expectations. As a result, the financial markets took the report in stride and equities rallied. The problem was Thursday’s Producer Price Index (PPI), an index that is a leading indicator of future […]