By Bill Hornbarger, Chief Investment Officer
Three Things to Watch
- Producer prices highlight the data calendar in the holiday-shortened trading week. The Producer Price Index (PPI) is expected up 8.2% year-over-year with core PPI forecast to be 6.6% higher than a year ago. Those would be the highest readings on record for the methodology adopted in 2010.
- The U.S. Federal Reserve will release the Beige Book report on Wednesday. Market participants will look for clues to indicate whether or not the economy has peaked for this cycle as well as the narrative surrounding inflation.
- Two stocks that were in the news during the pandemic report earnings this week. GameStop was the subject of a social-media influenced short squeeze while Lululemon was thought to have benefited from the strength in “athleisure” wear that was popular for working from home.
Three Things to Know
- Sports betting action heats up with the opening game of the NFL season set for Sept. 9 and the college football season ramping up with a full schedule of games. The legal betting pool on football this season is forecast by PlayUSA to hit $20 billion in wagers and U.S. sportsbooks are expected to rake in $1.5 billion in revenue. (Source: Seeking Alpha)
- The long moribund Nikkei 225 has been on a tear in recent months. It is up 29.1% since last November and has traded above 30,000 this year for the first time since 1990. (Source; Bloomberg)
- Before the pandemic, the largest monthly deficit in U.S. history, i.e., “spending” in excess of “receipts,” was $234 billion in February 2019. Since the pandemic began in January 2020, the largest monthly deficit in U.S. history has now increased to $864 billion in June 2020. (Source: MFS, Treasury Department).
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.