Rover’s Weekly Market Brief – 10/14/2022

More Features Added to Stock Rover V8

Included in the most recent update to Stock Rover V8 are new capabilities in the Chart facility as well as enhancements in the Insight Panel, Table, Screener Manager, and the Mobile Experience. You can read more about these updates in our latest blog post ^[1].

Economy

The Labor Department reported that the producer price index for final demand increased by a seasonally adjusted 0.4% ^[2] in September after declining 0.2% in August and 0,4% in July. On an unadjusted basis the PPI, a measure of prices that U.S. businesses get for the goods and services they produce, is up 8.5% on a year-over-year basis showing a slight deceleration from August’s 8.7% reading. Two-thirds of the rise in the final demand index is attributable to a 0.4% increase in prices for final demand services, a higher reading over August’s 0.3%. Over a quarter of the September increase in the index for final demand services can be traced to a 6.4% increase in prices for traveler accommodation services. The index for final demand goods also increased 0.4% in September, after dropping 1.1% the previous month. The index for final demands foods was a primary contributor as the 1.2% increase accounted for 60% of the advance in final demand goods. Prices for final demand energy rose 0.7%. Taking out the volatile food and energy categories, the PPI index increased by 0.3% on a monthly basis and 7.2% on a yearly basis. Excluding food, energy and trade services, the PPI index increased 0.4% for the month and 5.6% from a year ago.

The U.S. Bureau of Labor Statistics reported the consumer price index rose 0.4% ^[3] in September. Over the last 12 months, the all items index is up 8.2% before seasonal adjustment as compared to 8.3% in August. It has remained above the 8% level for seven consecutive months. On a monthly basis, the all items index was up (+0.4%), as compared to (+0.1%) in August, and a flat reading in July. Increases in the medical care (+1.0%), food (+0.8%), and shelter (+0.7%) indexes were the largest contributors to the seasonally adjusted all items increase. Offsetting the increase was a (-4.9%) decline in the gasoline index. The energy index declined (-2.1%) for the month, but natural gas (+2.9%) and electricity (+0.4%) both saw increases. Core CPI, which excludes the more volatile food and energy costs increased a seasonally adjusted 0.6% in September, matching August’s reading. Contributing to the increase were indexes for shelter (+0.7%), rent (+0.8%), medical care (+0.8%), motor vehicle insurance (+1.6%), household furnishings (+0.5%), personal care (+0.4%), education (+0.4%), airline fares (+0.8%), and recreation (+0.1%). Indexes that saw declines included used cars and trucks (-1.1%), apparel (-0.3%), and communication (-0.1%). The annual rate of core CPI inflation is now at a 40-year record high of 6.6%, up from 6.3% in August. The shelter index is up 6.6% year over year and accounts for about 40% of the total increase in Core CPI.

The Commerce Department reported advance U.S. retail and food services sales were little changed ^[4] at $684.0B in September, this follows an upwardly revised 0.4% increase in August. Retail sales are up 8.2% year over year. Total sales for July 2022 through September 2022 were up 9.2% year over year. Increased in sales were reported at department stores (+1.3%), general merchandise (+0.7%), restaurants (+0.5%), clothing stores (+0.5%), personal care (+0.5%), internet (+0,5%) and grocery stores (+0.4%). Offsetting the increases were decreases in miscellaneous retailers (-2.5%), gas stations (-1.4%), electronics (-0.8%), home furnishings (-0.7%), auto dealerships (-0.4%), and home and garden (-0.4%). When sales for gas stations and autos are excluded, retail sales increased by 0.3%. Core retail sales, a measurement that excludes spending on autos, gasoline, building materials, and food services increased by 0.4% in September. August’s core retail sales were revised to show sales increasing by 0.2% instead of flat.

Upcoming Economic Reports:

Wednesday October 19 – Beige Book

Thursday October 20 – Existing Home Sales (September)

Earnings Calendar:

 

Monday	Tuesday	Wednesday	Thursday	Friday
Bank of America (BAC)	Netflix (NFLX)	IBM (IBM)	Dow (DOW)	American Express (AXP)
Charles Schwab (SCHW)	United Airlines Holdings (UAL)	Tesla (TSLA)	Tractor Supply (TSCO)	Verizon Communications (VZ)