Market Drama

Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA

December 12, 2022 

Watch Time: 3 minutes

Welcome to this week’s Market Drama.

  • The S&P 500 was down 3.5% last week as a result of inflation. 
  • The U.S. Producer Price Index came out for November with an increase of 0.3% month-over-month and 7.4% year-over-year. 
  • The University of Michigan Consumer Sentiment came out with their December numbers and it was up to 59.1. The result was higher than expected (57) because of the question about inflation expectations. 
    • People are expecting inflation to be 4.6% a year out, versus just last month, they were expecting it to be 4.9%. Why? Because the national average retail price for gas has come down to $3.33 on average. That’s roughly down $1.69 from June. As gasoline prices come down, people feel a little bit better about what they should expect for inflation next year.

What to look forward to this week? 

  • We get November CPI numbers on Tuesday. The expectations are 7.3% for the overall number and 6.1% for the core (that excludes food and energy prices since those tend to be the most volatile). 
  • November retail sales came out on Thursday, which gives us a pulse on how the consumer’s doing. Since consumption accounts for 68% of GDP, this number will be very important. 
  • The biggest event of the week is on Wednesday when the Federal Reserve will announce how much they are raising interest rates. The expectation right now is for 50 basis points.
  • The Fed is also likely to update projections on how much they’re likely to hike next year.

– Andres

Disclosure: This material provided by Zoe Financial is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Nothing in these materials is intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Zoe Financial is not an accounting firm- clients and prospective clients should consult with their tax professional regarding their specific tax situation. Opinions expressed by Zoe Financial are based on economic or market conditions at the time this material was written.  Economies and markets fluctuate.  Actual economic or market events may turn out differently than anticipated.  Facts presented have been obtained from sources believed to be reliable.  Zoe Financial, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. 

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