M Notes: Mon, 2-27
Markets: A sharply negative week, as inflation proves it’s still sticky.
S&P roller coaster last week: Holiday, down significantly, down a touch, up, and down.
Fed Balance Sheet: $8.382 trillion (down $3 billion).
Fed Minutes: Nothing really new. The Federal Reserve sees inflation weakening, but not enough to stop raising their interest rate. However, the increases are only 25 basis points now (1/4 point).
GDP: In the second read for Q4, growth was revised down from +2.9% to +2.7%.
Housing: Existing home sales dropped -0.7% in January and are down -36.9% YOY. New home sales increased +7.2% in January, but are down -19.4% YOY.
Inflation: The Personal Consumption & Expenditures Index (the PCE), the inflation metric the Federal Reserve focuses on, was expected to drop a touch from 5.0% down to 4.9% YOY thru January. Instead, it rose to 5.4%.
Jobless claims: The weekly number came in at 192,000. The four-week average remains at 191,000.
Radio: Last week Bill was out of town. You can normally hear Bill and I discuss Markets most Friday mornings at 6:38am, 7:38am, and 8:38am 1100 AM, WTAM.
Focus of the week: Can Markets bounce back from last week’s negative action?
Earnings: Some of the companies reporting this week: Anheuser-Busch, Broadcom, Costco, Lowe’s, Salesforce, and Target.
Economic calendar: Durable goods orders (Mon); ISM manufacturing index (Wed); jobless claims (Thu); and the ISM services index (Fri).