{"id":68199,"date":"2023-05-26T08:58:49","date_gmt":"2023-05-26T12:58:49","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=68199"},"modified":"2023-05-26T08:58:49","modified_gmt":"2023-05-26T12:58:49","slug":"coffee-with-greta-stubborn-inflation","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/05\/26\/coffee-with-greta-stubborn-inflation\/","title":{"rendered":"Coffee With Greta: Stubborn Inflation"},"content":{"rendered":"

Register now<\/a> for my free Q&A with David Prince next week on LinkedIn!<\/strong><\/p>\n

DJIA Futures: <\/b>+9 (+0.03%)<\/span><\/p>\n

SPX Futures: <\/b>+1 (+0.02%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+23 (+0.2%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are flat as traders digest the latest inflation data and monitor progress in debt ceiling talks.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

PCE Inflation Hotter Than Expected<\/span><\/h2>\n

The Fed\u2019s preferred inflation gauge ran hotter than expected in April.\u00a0<\/span><\/p>\n

The Bureau of Economic Analysis\u2019 personal consumption expenditures price index rose 0.4% monthly and 4.4% year over year last month.\u00a0<\/span><\/p>\n

That was up from the 4.2% gain in March.\u00a0<\/span><\/p>\n

The core PCE price index, which excludes food and energy and is the Fed\u2019s preferred inflation measure, rose 0.4% monthly and 4.7% year over year.\u00a0<\/span><\/p>\n

That was hotter than expectations for 0.3% monthly and 4.6% annually.\u00a0<\/span><\/p>\n

The data showed the U.S. economy tilting back toward a services focus as goods prices increased 2.1% year over year but services prices jumped 5.5%.<\/span><\/p>\n

The report also showed consumer spending held up strong during the month despite stubborn inflation pressures.\u00a0<\/span><\/p>\n

Consumer spending jumped 0.8% in April vs 0.4% expected.<\/span><\/p>\n

Personal incomes rose 0.4%, in line with expectations.<\/span><\/p>\n

Debt Ceiling Talks Continue<\/span><\/h2>\n

Debt ceiling talks are still ongoing after negotiators reportedly moved closer to a deal on Thursday.<\/span><\/p>\n

But the final phase of talks is expected to be the most difficult.<\/span><\/p>\n

Republican Representative Patrick McHenry told reporters, \u201cWe\u2019re at a sensitive phase, with sensitive issues that remain. Those sensitive issues are the thorniest issues that we\u2019ve been discussing. Everybody\u2019s trying to do a fine job of figuring out the finer details of this, but nothing\u2019s done.\u201d<\/span><\/p>\n

President Biden said, \u201cThe only way to move forward is with a bipartisan agreement, and I believe we\u2019ll come to an agreement that allows us to move forward and protects the hardworking Americans of this country.\u201d<\/span><\/p>\n

No in-person meeting at the White House is scheduled for today but McHenry said, \u201cthere\u2019s alignment on the set of things that we need to work on.\u201d<\/span><\/p>\n

Costco Slips After Earnings Miss<\/span><\/h2>\n

Costco <\/b>(COST) shares are down 0.2% ahead of the open after missing fiscal Q3 expectations.\u00a0<\/span><\/p>\n

Here\u2019s how the warehouse retailer\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

    \n
  • EPS: $2.93 vs $3.29 expected<\/span><\/li>\n
  • Revenue: $52.6 billion vs $54.5 billion expected<\/span><\/li>\n<\/ul>\n

    Same-store sales rose just 0.3% globally and dipped 0.1% in the U.S., missing expectations for 2.8% growth.<\/span><\/p>\n

    Coming Up: Consumer Sentiment<\/span><\/h2>\n

    The University of Michigan releases its final consumer sentiment index for May at 10:00 a.m. ET.\u00a0<\/span><\/p>\n

    That survey is expected to be unchanged from the flash reading of 57.7 earlier this month.\u00a0<\/span><\/p>\n

    The index also includes consumers\u2019 inflation expectations over the next one, three, and five years.<\/span><\/p>\n

    In Case You Missed It<\/span><\/h2>\n
      \n
    • Pending home sales stalled in April as buyers struggle with low inventory. The National Association of Realtors reported the number of contracts signed to purchase a home was unchanged last month. That missed expectations for a 0.8% increase. Pending sales tumbled 20.3% year over year.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

      Register now for my free Q&A with David Prince next week on LinkedIn! DJIA Futures: +9 (+0.03%) SPX Futures: +1 (+0.02%) NASDAQ Futures: +23 (+0.2%) Good morning friends! Futures are flat as traders digest the latest inflation data and monitor progress in debt ceiling talks. Let\u2019s get right to it! PCE Inflation Hotter Than Expected The Fed\u2019s preferred inflation gauge ran hotter than expected in April.\u00a0 The Bureau of Economic Analysis\u2019 personal consumption expenditures price index rose 0.4% monthly and 4.4% year over year last month.\u00a0 That was up from the 4.2% gain in March.\u00a0 The core PCE price index, which excludes food and energy and is the Fed\u2019s preferred inflation measure, rose 0.4% monthly and 4.7% year over year.\u00a0 That was hotter than expectations for 0.3% monthly and 4.6% annually.\u00a0 The data showed the U.S. economy tilting back toward a services focus as goods prices increased 2.1% year over year but services prices jumped 5.5%. The report also showed consumer spending held up strong during the month despite stubborn inflation pressures.\u00a0 Consumer spending jumped 0.8% in April vs 0.4% expected. Personal incomes rose 0.4%, in line with expectations. Debt Ceiling Talks Continue Debt ceiling talks are still ongoing after negotiators reportedly moved closer to a deal on Thursday. But the final phase of talks is expected to be the most difficult. Republican Representative Patrick McHenry told reporters, \u201cWe\u2019re at a sensitive phase, with sensitive issues that remain. Those sensitive issues are the thorniest issues that we\u2019ve been discussing. Everybody\u2019s trying to do a fine job of figuring out the finer details of this, but nothing\u2019s done.\u201d President Biden said, \u201cThe only way to move forward is with a bipartisan agreement, and I believe we\u2019ll come to an agreement that allows us to move forward and protects the hardworking Americans of this country.\u201d No in-person meeting at the White House is scheduled for today but McHenry said, \u201cthere\u2019s alignment on the set of things that we need to work on.\u201d Costco Slips After Earnings Miss Costco (COST) shares are down 0.2% ahead of the open after missing fiscal Q3 expectations.\u00a0 Here\u2019s how the warehouse retailer\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $2.93 vs $3.29 expected Revenue: $52.6 billion vs $54.5 billion expected Same-store sales rose just 0.3% globally and dipped 0.1% in the U.S., missing expectations for 2.8% growth. Coming Up: Consumer Sentiment The University of Michigan releases its final consumer sentiment index for May at 10:00 a.m. ET.\u00a0 That survey is expected to be unchanged from the flash reading of 57.7 earlier this month.\u00a0 The index also includes consumers\u2019 inflation expectations over the next one, three, and five years. In Case You Missed It Pending home sales stalled in April as buyers struggle with low inventory. The National Association of Realtors reported the number of contracts signed to purchase a home was unchanged last month. That missed expectations for a 0.8% increase. Pending sales tumbled 20.3% year over year.<\/p>\n","protected":false},"author":41,"featured_media":68208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-68199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/68199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=68199"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/68199\/revisions"}],"predecessor-version":[{"id":68210,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/68199\/revisions\/68210"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/68208"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=68199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=68199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=68199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}