By Bill Hornbarger, Chief Investment Officer
Three Things to Watch
The Consumer Price Index (CPI) for August is set to be released on Tuesday. CPI is expected to be up 5.3% year-over-year with core CPI (ex Food and Energy) up 4.2% from a year earlier. That would be the lowest reading in three months for CPI, which remains in focus for investors and the Fed.
Investors will also get important readings on manufacturing, jobless claims, consumer sentiment, and retail sales. In addition to CPI, inflation watchers will see import prices and the University of Michigan inflation expectations data. Retail sales are expected to be soft for the second consecutive month as stagflation (higher prices coupled with no/low growth) concerns increase.
Investors will pay close attention to congressional discussions on the proposed infrastructure bill, in particular how big will it be and what taxes and tax rates are going to be written into the legislation.
Three Things to Know
The number of container ships waiting to enter America’s top three ports has been steadily increasing this summer. There are a total of 69 ships in queue between Los Angeles/Long Beach, New York/New Jersey, and Savannah, Ga. On the east coast, Georgia’s Port of Savannah had 20 cargo carriers idling in queue compared with just eight in port -- the highest congestion rate of all major ports in the world. (Source: Bloomberg)
The global shipping industry (which accounts for 80% of world trade), posted its strongest daily earnings since 2008. Container shipping is setting new records on the combination of pent- up demand and supply chain issues, resulting in crowded ports and delayed vessels. (Source: Bloomberg)
One World Trade Center, the 1,776-foot office building that rose in place of the Twin Towers destroyed on Sept. 11, 2001, cost $3.8 billion and is the most expensive skyscraper ever built in the U.S. The entire World Trade Center complex hasn’t made a profit since One World Trade opened seven years ago, according to the building’s owner, the Port Authority of New York and New Jersey. In 2020, World Trade Center expenses of $335 million topped revenues of $328 million, the Port Authority’s annual report stated. (Source: The Wall Street Journal)
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.
The stock market’s skies darkened a bit last week. The sunny economic conditions in recent months, along with a pleasing tailwind of strong corporate earnings, have created an environment in which the major averages were able to slough off a variety of potential threats and rack up an impressive string of record highs. But the skies were not so bright last week, and it seemed that more clouds rolled in as the week went on. Most stock indices lost ground in each of the week’s four sessions.