Posted on 05/08/2023 7:10:27 AM PDT by CFW
Key inflation data, quarterly results from Disney (DIS), and an increasingly contentious debate over the looming national debt limit await investors in the week ahead.
For investors, Wednesday morning's Consumer Price Index (CPI) report for April will be the week's biggest release, with markets looking for signs of a further slowdown in consumer prices.
Wall Street expects headline CPI, which includes the price of food and energy, rose 5% over last year in April, which would match the annual increase seen in March. Prices are set to rise 0.4% on a month-over-month basis.
On a "core" basis, which strips out the food and energy prices, inflation is forecast to rise 5.5% over last year in April, a slowdown from the 5.6% increase seen in March. Monthly core price increases are expected to clock in at 0.4%.
(Excerpt) Read more at finance.yahoo.com ...
Watched CSpan this morning. We’re screwed. The dumb masses still believe a decrease of the increase in spending is a ‘cut’. Most D callers think .gov should give out more money to cover housing, food and medical. And simply making the rich ‘pay their fair share’ will cure the deficit.
This consumer has 0% confidence in the Consumer Confidence numbers. Prices are up 5% to 6% from last year? In what dream world?
On a "core" basis, which strips out the food and energy prices>, inflation is forecast to rise 5.5% over last year in April,You know, the things that affect everyone's lives.
“Inflation expectations for the one-year horizon in the United States fell to 4.4 percent in April 2023 from the previous month’s 4.7 percent. This decrease was attributed to a softer perceived increase in costs for both college education (7.8 percent vs. 8.9 percent in March) and food (5.8 percent vs. 5.9 percent).
However, expected price changes for gas increased (5.1 percent vs. 4.6 percent). Inflation expectations remained unchanged for the cost of medical care (9.3 percent) and rent (9.2 percent). Meanwhile, inflation expectations for the three- and five-year horizons increased by 0.1 percentage point to 2.9 percent and 2.6 percent, respectively.
source: Federal Reserve Bank of New York”
In other market news:
“The largest US meat company, Tyson Foods, tumbled 10% in premarket trading after it posted a second-quarter loss. The meat supplier has been battered by rising costs across its business and sliding demand for its meat products as consumers push back against high supermarket prices.
For the quarter ending on April 1, Tyson reported a loss of $97 million, or 28 cents per share, compared to a net income of $829 million in the same period last year. A Factset survey of Wall Street analysts expected the company to report a profit of 80 cents per share.
Tyson said quarterly revenue increased slightly from the prior year at $13.1 billion. However, it was well below the $13.6 billion the analysts expected.
Tyson cut its 2023 fiscal year revenue outlook to $53-54 billion (previously $55 billion - $57 billion), short of the Wall Street forecast of $55.2 billion.”
The meat supplier has been battered by rising costs across its business and sliding demand for its meat products as consumers push back against high supermarket prices.Everything else is just double-talk and noise.
However, expected price changes for gas increased (5.1 percent vs. 4.6 percent). Inflation expectations remained unchanged for the cost of medical care (9.3 percent) and rent (9.2 percent). Meanwhile, inflation expectations for the three- and five-year horizons increased by 0.1 percentage point to 2.9 percent and 2.6 percent, respectively.High "expectations" are almost never met and almost always lead to failure...It's by design.source: Federal Reserve Bank of New York”
Now I'm supposed to trust anything coming from banks that can't conduct or manage their own business.
How many bank failures/buyouts coming this week?
Maybe they're too busy trying to make Biden look not so bad while ignoring their real reason for being.
“How many bank failures/buyouts coming this week?”
I’m not sure how many will fail this week, but I expect more to occur sooner rather than later. The media narrative at the moment seems designed to pump the stock prices of regional banks back up so the “powers that be” can dump their shares and leave retail investors holding the bag. I’ve seen that happen before. Economic “experts” were recommending SVB only weeks before it failed. The same goes for NY’s Signature Bank.
Many times while recommending others “buy” they are busily dumping their shares each time there is a price spike. Also, note the number of politicians who were selling First Republic Bank shares and buying JP Morgan shares in the week prior to FRB’s failure and buy-out by JPM.
Another economic disaster on the horizon.
“Subprime auto defaults on path toward 2008 crisis levels, say portfolio managers”
“The surge in easy credit during the pandemic, government stimulus payments, and skyrocketing car prices have all begun to bite borrowers with the lowest credit scores.
Subprime borrowers who financed used cars at record prices in recent years have been acting more stressed than during the 2008 global financial crisis, even though the labor market has been resilient, according to a new report from fixed-income asset manager Bramshill Investments.”
[snip]
The duo pointed to 60-plus day delinquencies hitting 9% in March for borrowers with credit scores of 550 and below when looking at subprime auto loans packaged into asset-backed securities, or bond deals. That’s up from a rate of about 7% in March 2019 before the COVID crisis.
And one more sign of the economic times:
“Sticker Shock: New Car Prices Up 19% During Joe ‘Car Guy’ Biden’s Presidency”
“We’re screwed.”
That about sums it up.
“https://finance.yahoo.com/news/chicago-feds-goolsbee-credit-squeeze-is-beginning-170841489.html“
“Chicago Fed’s Goolsbee: ‘Credit squeeze is beginning’”
“Federal Reserve Bank of Chicago President Austan Goolsbee warned Monday that a credit tightening is under way and recession is a possibility.
“The credit crunch or at least the credit squeeze is beginning,” Goolsbee told Yahoo Finance LIVE in an exclusive interview, when asked how he views credit conditions in light of several bank failures over the last two months.”
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