By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- The October Consumer Price Index (CPI) report will be the key event this week. Oil prices fell sharply during the month, and there is a wider dispersion than normal around the forecast. U.S. Federal Reserve (Fed) Chairman Jerome Powell made hawkish comments on inflation and Fed policy last week, indicating that the Fed would not hesitate to tighten monetary policy if the data supported a hike. This will be the first high-profile data report since then, and any negative surprise will likely be met with negative reactions in the financial markets. The Bloomberg consensus is for a year-over-year reading of 3.3% and 4.1% for overall and core CPI, respectively. Some forecasters are calling for the first “3-handle” on core CPI since March 2021.
- Retail sales for October will be released on Wednesday, with major retailers Target, Walmart, and Home Depot all releasing earnings. Both the consumer staples and consumer discretionary sectors have posted positive surprises in terms of earnings and sales (revenue) this quarter. Retail sales are expected to be down 0.3% last month, driven in large part by energy prices.
- Later in the week, both industrial production and manufacturing output are expected to decline, partially due to the impact of the United Auto Workers strike.
Three Things to Know
- The average price of a used Tesla has fallen for 16 consecutive months. The price peaked at a record high of $67,900 in July 2022 and fell to a record low of $39,550 today (-42%). (Source: @charliebilello)
- Every year on November 11, the United States celebrates Veterans Day to honor those who serve and have served in the armed forces. Veterans Day occurs on November 11 every year in the United States in honor of the “eleventh hour of the eleventh day of the eleventh month” of 1918 that signaled the end of World War I, known as Armistice Day. (Source: www.history.com)
- Despite topping the box office this week, “The Marvels” had the worst debut of any movie in the history of the Marvel Cinematic Universe (MCU, which spans 33 movies over 15 years). It misfired with $47 million at the box office, joining 2008’s “The Incredible Hulk” ($55.4 million and 2015’s “Ant-Man” ($57.2 million) in the MCU bottom three. (Source: www.IMDB.com)
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.