By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- Inflation continues to be one of the bigger issues for investors, and this week will bring new readings on prices. On Wednesday, the Consumer Price Index (CPI) for January will be released. It is expected to be up 0.3% month-over-month for both overall and core inflation with a consensus forecast of year-over-year changes of 2.9% and 3.1%, respectively. A consensus print for CPI would represent the lowest reading since April 2021 and would show that the U.S. Federal Reserve remains on track with its 2% core inflation target. On Thursday, wholesale inflation (the Producer Price Index) will be released, and import prices are out on Friday.
- Robust consumer spending has been one of the bright spots of the economy, and retail sales for January will be released. Retail sales ex-autos is expected to increase 0.3% month-over-month, which would be the 12th increase in the last 13 readings.
- The earnings parade continues with high-profile names McDonald’s, Coca-Cola, Cisco and Applied Materials on the tape. With approximately 60% of S&P 500 members reporting, positive earnings surprises outnumber negative earnings surprises by almost 5 to 1.
Three Things to Know
- Super Bowl Sunday is the second-biggest eating day of the year, after Thanksgiving Day. (Source: The Fact File)
- Americans consume approximately 1.4 billion chicken wings on Super Bowl Sunday, while pizza delivery orders increase by 35%. The most popular Super Bowl snack is chips and dip, and beer sales increase by nearly 20% during Super Bowl week. The average Super Bowl party has 17 people. (Source: Facts.net)
- The U.S. Pentagon paid $1 billion in one year for an audit, making it the most expensive audit of all time. This was in 2018 dollars, which makes current audit costs likely closer to ~$1.5 billion. In 2024, the Pentagon failed its seventh consecutive audit. Furthermore, it couldn’t account for 63% of its $3.8 trillion of assets in a recent audit. Between all government agencies, audit costs could be $10+ billion per year. (Source: The Kobeissi Letter)
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.