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Week Ahead | Inflation Thumbnail

Week Ahead | Inflation

“A nickel ain’t worth a dime anymore.” - Yogi Berra 

Last week's market recap: 

  • The S&P 500 closed the week up 1.89%. Year-to-date the index is up 10.03%
  • NASDAQ closed the week up 1.17%. YTD the index is up 9.12%
  • U.S. Aggregate Bond index was up .09%. YTD the index is down -1.97%
  • 10-Year Treasury Rate was flat, ending the week at 4.50% unchanged from 4.50% the prior week
    • Fed Funds Target rate remains at 5.25-5.50%
  • The 1-Year Treasury is yielding 5.17%  
  • A 6 Month Treasury is yielding 5.38%  

 

The week ahead:  

  • CPI
  • PPI
  • Retail Sales
  • Housing Data
  • Earnings: Walmart, Home Depot, Cisco, and more.


Inflation:  

Inflation data will take center stage this week.  Even though cumulative inflation is up 21% since 2020, never underestimate the American Consumer.  70% of the U.S. economy is consumer spending.  Corporate America is resilient.  When people are earning money, they are willing to spend money.  

Q1 earnings have been strong.  Stocks have moved higher and confidence has been building.

CPI will be in focus this week.  Consensus estimates for year-over-year Headline CPI is projected to tick down from 3.5% to 3.4%.  Core CPI is expected to decline from 3.8% to 3.6%.  If estimates are correct, many investors will enjoy getting back on track of moderating prices.

 


Source: BlackRock Weekly Commentary


As always, let us know if you have any questions.

 

Best, 

CRA Investment Committee


Matt Reynolds CPA, CFP®

Tom Reynolds, CPA 

Robert T. Martin, CFA, CFP®

Gordon Shearer Jr., CFP® 

Jeff Hilliard, CFP®, CRPC®

Joe McCaffrey, CFP® 

Phillip Tompkins, CFP®


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