Dow slid back 37, advancers & decliners were even & NAZ was up 20. The MLP index fell 1 to the 213s & the REIT index we nt up 2+ to the 385s. Junk bond funds were a little lower & Treasuries had more selling which lifted yields. Oil recovered 1+ to the 72s & gold added 8 to 1809.
AMJ (Alerian MLP index tracking fund)
Inflation at the wholesale level rose more than expected in Nov, underscoring the stickiness of high consumer prices in the economy & raising pressure on the Federal Reserve to continue hiking interest rates. The Labor Dept said that its producer price index, which measures inflation at the wholesale level before it reaches consumers, rose 0.3% in Nov from the previous month. On an annual basis, prices soared 7.4%. That is down from the 8% reading recorded in Oct & marks the lowest reading since May 2021. Still, those figures were both higher than the 7.2% headline figure & 0.2% monthly gain forecast, a worrisome sign for the Federal Reserve as it seeks to cool price gains & tame consumer demand with the most aggressive interest rate hike campaign since the 1980s. Excluding food & energy, core inflation increased 0.4% for the month, higher than the 0.2% estimate. Over the past 12 months, core prices climbed 6.2%, compared with 6.6% in Oct. Services inflation accelerated in Nov, climbing 0.4% after rising just 0.1% in Oct. The bulk of the increase – about 1/3 – stemmed from an 11.3% jump in the prices for securities brokerage, dealing, investment advice & related services. The cost of machinery & vehicle wholesaling, loan services & portfolio management also rose in Nov. Goods inflation rose just 0.1% last month after surging 0.6% in Oct. The slight increase came despite a 38.1% monthly jump in prices for fresh & dry vegetables. Prices for other food items including eggs & meats also climbed higher in Nov. However, the cost of gasoline tumbled 6% last month, while the cost of diesel fuel & natural gas also dropped.
Wholesale inflation rises faster than expected in November as high prices persist
US wage growth has slowed sharply over the past year & is on pace to return to pre-pandemic levels by H2-023, according to new data from career site Indeed. The wage tracker — based on salaries for job advertisements listed on Indeed — showed that salaries were up 6.5% in Nov from one year ago. According to the index, that compares to a rate of about 9% in Mar, suggesting that employers are facing less competition for new hires. The deceleration is broad-based, with wage growth tumbling in about 82% of job sectors in Nov from 6 months earlier. Based on the current trajectory, wage growth will likely return to its pre-pandemic range of about 3-4% by the year's 2nd ½. Indeed suggested that the data is a leading indicator because it is based upon salaries published in job postings rather than actual wages paid to workers. "Wages and salaries advertised in job postings on Indeed are a potential canary in the labor market coal mine," wrote Indeed labor economist Nick Bunker. "The slowing pay gains in job postings may be a harbinger of what broader measures of compensation will show in the months ahead." The Indeed gauge stands in contrast to a separate report from the Labor Dept released last week, which showed that average hourly earnings surged 0.6% in Nov, double was anticipated. Wages are up 5.1% on an annual basis. The Federal Reserve is closely watching wage growth as it tries to combat inflation with the most aggressive rate-hike campaign since the 1980s. Policymakers have expressed concern about the possibility of a wage-price spiral, a scenario in which soaring pay growth keeps inflation elevated by pushing businesses to further raise prices to offset the cost of labor.
US wage growth slows sharply as job market cools off, new report finds
This time last year, the Delta variant was about
to send Covid-19 cases to what would be their highest peak of the
pandemic so far. It's no wonder, then, that 45% of Americans ranked Covid as the biggest issue facing the US at the time, according to last year's Consumer Trends survey from The New Consumer. But
now, that concern has been replaced with worries about inflation &
rising prices. Just 16% of people rank Covid-19 as the most important
problem, compared to 45% who say inflation is, according to this year's survey. Heading into the 4th calendar year of the pandemic, it's
understandable that people are tired of it. But the risk of catching
Covid is still significant, which could spell even bigger financial
difficulties than high prices. Not everyone has moved on, though. Younger generations are still worried
about Covid-19, with 18% of Gen Z & millennials ranking it a top
concern. However, just 13% of respondents who are Gen X & older still rank
Covid as a top concern. In fact, the virus didn't even crack the top 7 of older generations’ primary concerns. While vaccinations & treatments have made Covid seem less threatening
than at the beginning of the pandemic, the risk of serious symptoms —
including death — remains, & grows larger with age. Those 85 & older are most at risk for developing serious symptoms from a Covid infection, according to the Mayo Clinic, & those 65 & older account for an estimated 81% of Covid deaths.
Inflation tops Covid-19 as Americans’ biggest concern
Dow Jones Industrials
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