Three Things to Know & Watch – 14 March, 2022

By Bill Hornbarger, Chief Investment Officer

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Three Things to Watch

  • The Federal Reserve meets this week and the rate decision will be announced Wednesday afternoon. Traders are almost positive that the Fed will raise rates 25 basis points, although futures indicate a small possibility of a larger 50= basis-point increase. Of equal importance will be forward guidance from the Fed to help set expectations for how many additional increases are possible and over what time frame.
  • Retail sales for February will be released on Wednesday and are expected to be up 0.4% overall and 0.4% excluding autos and gas. March retail sales will likely see a larger impact from the recent increase in energy prices.
  • Producer prices (PPI) will be out Tuesday and are expected up 10% year-over-year. The end of the week will also feature multiple reports on the housing market including housing starts and existing home sales and on Friday; the leading indicators will be released and are expected to rebound from last month’s negative reading.

Three Things to Know

  • In the previous eight Fed hiking cycles, the S&P 500 was higher a year after the first increase every single time. (Source: LPL Financial)
  • St. Patrick’s is an Irish national holiday and will be celebrated on Thursday, March 17. There are 34.7 million U.S. residents with Irish ancestry. This number is more than seven times the population of Ireland itself. (Source: history.com)
  • The NASDAQ Golden Dragon China index is an index of companies that are publicly traded in the U.S. and the majority of their business is conducted within China. It is at the lowest level since 2016 and down more than 71% since its peak early last year. (Source: The Market Ear, 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.