Three Things to Know & Watch

Oct 10, 2022

By Bill Hornbarger, Chief Investment Officer

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Three Things to Watch

  • Nine Fed speakers are on the docket this week and the market continues to look for clarification on the outlook for monetary policy and the path of the economy. The minutes from the Sept. 21 Fed meeting (where rates were increased 75 basis points) will also be released on Wednesday, providing further clues of the Fed’s thinking.
  • Both PPI (Wednesday) and CPI (Thursday) are forecast to be a mixed bag. Overall CPI is expected at 8.1% (down from 8.3% last month) while core CPI (excluding food and energy) is expected to increase to 6.5%. PPI final demand is expected to decline slightly, from 8.7% to 8.4%. Additional inflation data will be released reflecting import prices and inflation expectations from the University of Michigan survey. Inflation remains the primary concern for investors and consumers.
  • The third-quarter earnings season starts this week amid questions and concerns about how much earnings have been hurt by higher inflation and a slowing economy.

Three Things to Know

  • OPEC+ cut oil production by 2 million barrels per day last week, the first cut in production since the pandemic began. Source: OPEC+
  • The market capitalization of Apple is greater than the entire S&P 400 mid-cap index ($2.25 trillion and $2.09 trillion, respectively). Source: Willie Delwiche
  • The amount of global sovereign debt trading with negative yields has plunged 87.3% since last December, and currently stands at $1.8 trillion, down from a peak of $18.4 trillion in late 2020. Source: Bloomberg

The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.