Rover’s Weekly Market Brief – 11/12/2021

New Stock Rover Screener Video

We have created a new screener video that introduces you to the powerful stock and ETF screening capabilities of Stock Rover. You can watch the 10 ½ minute video here ^[1].

Economy

The U.S. Bureau of Labor Statistics reported the US producer price index up 0.6% ^[2] in October, after increasing 0.5% in September. The U.S. PPI is up a record 8.6% for the 12 months ending in October, this is the highest annual pace going back to November 2010. Over 60% of the headline number can be credited to the increase in final demand goods. The index for final demand goods increased 1.2% and followed a 1.3% jump in September. In October, three-quarters of the advance of the final demand goods can be attributed to a 4.8% increase in final demand energy prices. The Core PPI, which excludes the more volatile food and energy prices, was up 0.4% month-over-month and 6.2% for the 12-month period ending in October, this is also the highest annual pace going back to November 2010. Final demand services rose for the 10^th consecutive month by 0.2%, with two-thirds of the increase attributable to a 0.4% gain in trade services – the margins received by wholesalers and retailers. About 80% of the increase in prices for final demand services can be attributed to margins for automobiles and automobile parts retailing, which rose 8.9%.

The U.S. Bureau of Labor Statistics reported the consumer price index rose 0.9% ^[3] in October; this follows a 0.4% increase in September. The index’s year-on-year rate is up a seasonally adjusted 6.2%, the fastest annual pace since 1990. Price increases were broad-based with the indexes for energy (+4.8%), used car and truck (+2.5%), new vehicles (+1.4%), food (+0.9%), and shelter (+0.5%) all contributing. The energy index is up some 30% over the past 12 months. The gasoline index rose 49.6% over the last year, fuel oil is also up 59.1% year over year.  The food index is up 5.3% over the past 12 months. Core CPI, which excludes the more volatile food and energy costs increased a seasonally adjusted 0.9% in October, a significant uptick over September’s 0.4%. The annual rate of Core CPI inflation is 4.6% and follows a 4.0% reading in September.

The Labor Department reported a decrease in initial jobless claims ^[4] for the week ending November 6. The seasonally adjusted initial claims came in at 267,000, a decrease of 4,000 from the previous week’s upwardly revised level. The four-week moving average, which smooths out volatility was 278,000 a decrease of 7,250 from the previous week’s revised average, this is the lowest average since March 2020.  For the week ending October 30, the insured unemployment rate was 1.6%.  The total number of unemployment claims for the week ending October 30 reported in at 2.16M up 59,000 from the previous week’s downwardly revised level. The continuing claims 4-week moving average was 2,245,000, a decrease of 110,750 from the previous week, this is the lowest average since March 2020. According to the unadjusted data for the week ending October 30 – Missouri (-3,014), Florida (-2,286), Virginia (-1,482), Oklahoma (-1,324), and Pennsylvania (-1,026) all saw decreases in initial claims. States hard hit by auto manufacturing cutbacks saw increases – Kentucky (+2,882), Louisiana (+907), Minnesota (+885), Tennessee (+798), and New Jersey (+768).  For the week ending October 23, 2.57M people were receiving jobless benefits through state or federal programs, a decrease of 107,000 from the previous week’s upwardly revised level. There were some 21.7M weekly claims filed for the comparable week in 2020.

Upcoming Economic Reports:

Tuesday November 16 – Retail Sales (Mom) (October)

Wednesday November 17 – Building Permits (October)

Earnings Calendar:

 

Monday	Tuesday	Wednesday	Thursday	Friday
Advance Auto Parts (AAP)	Home Depot (HD)	Lowe’s Companies (LOW)	Intuit (INTU)	Foot Locker (FT)
Tyson Foods (TSN)	Walmart (WMT)	NVIDIA (NVDA)	Ross Stores (ROST)	Hibbett (HIBB)