Economic Data Remains Strong, Inflation Is in Focus, Stock Buybacks Resume
February 17, 2023 | FIRESIDE CHARTS
Economic data is showing no signs of weakness so far in 2023. If the economy remains strong, or even accelerates, then the Federal Reserve may have a harder time bringing inflation back to target. Despite this, inflation is still easing which takes pressure off businesses and consumers. For the first time in years, inventories are back to normal for small businesses. Companies are buying back stock. Bonds are behaving like bonds. Have NFTs lost their appeal?
1. Recent data has, almost uniformly, surprised to the upside:
Source: Daily Shot 2/16/2023
2. The Consumer Price Index (CPI) report was roughly in-line with the market’s expectations, but the strong Producer Price Index (PPI) report took the market by surprise:
3. Fewer businesses are planning to raise compensation as inflation wanes and the labor market loosens:
Source: Oxford Economics
4. Consumer sentiment continues to increase:
Source: Daily Shot 2/13/2023
5. Americans’ biggest financial regret in 2022 was spending too much money, in 2023 they plan to increase savings:
Source: LendingTree
6. A positive number indicates more businesses have too little inventory and a negative number indicates more businesses have too much inventory:
Source: Daily Shot 2/15/2023
7. Companies are increasing stock buybacks, at lower prices, as business results continue to hold up:
Source: Deutsche Bank Research
8. In recent months, stocks and bonds have stopped moving with one another:
Source: S&P Dow Jones Indices
9. Crypto prices are rebounding but demand for NFTs clearly has not:
Source: @OpenAxisHQ
Disclosure: The charts and infographics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.