Three Things to Know & Watch – Dec 6, 2021

By Bill Hornbarger, Chief Investment Officer

Three Things to Watch

  • The economic calendar is highlighted by November CPI on Friday. Overall inflation is expected to be up 6.7% year-over-year with core inflation (sans food and energy) climbing 4.9% from a year ago. If the headline number reaches 6.7%, it will be the highest inflation rate since 1982.
  • Friday will also bring the University of Michigan inflation expectations for one-and five years. Last month, they were reported at 4.9% and 3% respectively. The Fed watches inflation expectations closely since they can impact business and consumer spending plans.
  • The University of Michigan will also release consumer sentiment on Friday. Despite stocks at or near record highs and a strong job market, both the readings on current conditions and future expectations have been slipping, driven lower by the hot inflation readings.

Three Things to Know

  • On Friday, the widely anticipated remake of West Side Story will be released, directed by Steven Spielberg. It is an adaptation of William Shakespeare’s Romeo and Juliet that was first seen on Broadway in 1957 and released as a motion picture in 1961. The 2021 version has an estimated budget of $100 million vs. $6 million for the original. (Source; IMDB.com)
  • Tuesday is the 80th anniversary of the attack on Pearl Harbor. The Japanese attack began at 7:55 am and lasted one hour and 15 minutes. The attack killed 2,403 U.S. personnel, including 68 civilians, and destroyed or damaged 19 U.S. Navy ships, including 8 battleships. (Source: census.gov)
  • The S&P 500 is down approximately 3.5% since its peak in mid-November. The Russell 2000 index of small cap stocks is down over 11.5% during the same timeframe. (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.