Author: Zac Martin, Investment Associate
Week Ending January 17th – Round Two
Core Consumer Price Index for December reported lower inflation than the analyst expectations and decelerated from November’s report. Headline CPI, however, saw a slight increase to 2.9% due to higher energy prices.
Producer Price Index also reported positive results with Core PPI beating expectations by 0.3%, or 3.5% year over year.
The Empire State Index saw a slight decrease in sentiment around current conditions (-12.6%), the decrease was led by declining new orders and an increase in delivery time. However, sentiment around forward six-month conditions remain elevated and continues to increase (+9.8%). Pricing sentiment for both current conditions and future conditions have resumed their upward trajectory.
The Philadelphia Fed Index’s Current Indicators sharply rose to 2021 levels (+50.9%), which has been led by new orders and current shipments. These firms have also reported an increase of sentiment around prices paid and received as well as employment.
Earnings: The large banks kicked off Q4 earnings season with strong results. JPMorgan reported a revenue increase of 10.9% Y/Y and an EPS increase of 17.6% Y/Y. The company also announced that the board had approved a dividend increase of 8.7% and authorized a $30bln share buyback program.
The week ahead:
Leading Indicators (1/22)
Kansas City Fed Index (1/23)
Michigan Sentiment (1/24)
Chicago Fed National Activity Index (1/27)
Earnings: DHI, FITB, KEY, MMM, PLD, SCHW, NFLX (1/21), JNJ, GEV, ABT, KMI, PG (1/22), GE, CSX (1/23), VZ, NEE (1/24)
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