Economy
After a few weeks of a flurry of jobs and inflation data, we didn't have much to parse through this week. All eyes will be on the inflation report due out Wednesday from the Bureau of Labor Statistics. The Cleveland Fed's Center for Inflation Research is forecasting a jump of over 0.5% for the month of September, likely due to rising energy costs. Removing those volatile price changes from the equation, they forecast core inflation to rise by a more tame 0.2%. The New York Federal Reserve's monthly Survey of Consumer Expectations showed the median view for inflation for the next year rose to 3.9%, the highest level in more than 3 years. The Fed will meet once again at the end of the month, and ahead of next week's important inflation report, the market is expecting rates to remain unchanged.
Markets
We had a winning week on Wall Street as the S&P 500 rose by 1.15%. Volatility remains present in both oil markets and bond markets, two things that are somewhat linked together and provide one of the main drags on the stock market. There was a portfolio manager interviewed by CNBC this week that commented on the war with Iran holding back the market from reflecting how powerful the near-term corporate earnings picture is. We'll begin to see exactly what the earnings picture looks like on Tuesday morning as earnings reports start to trickle in. We'll hear from the largest banks in the country first, with JP Morgan, Bank of America, and Citi on deck.
What We're Reading
- The Good, the Bad, and the Ugly of Rising Interest Rates - CRR
- What the Data Center Boom Looks Like From the Sky - NY Times
Have a great weekend.
Dogwood Wealth Management