Market Drama

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

Week of November 14, 2022 

Watch Time: 5 minutes

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Welcome to your weekly dose of Market Drama.

  • October CPI numbers are much better than expected. The headline inflation number, which includes energy and food prices, came in at 7.7% and was expected to be 7.9%.
  • The core inflation number that excludes energy and food (which is stickier) is at 6.3%, better than the 6.5% that the market expected. 
  • We are seeing encouraging signs:
    • U.S. vehicle prices dropped 2.4%.
    • Medical care services were down 0.6%.
    • The Dow is up 4% on a weekly basis.
    • Nasdaq is up almost 6%. 
  • The S&P is up almost 5%. Most importantly, the S&P was up 5.5% on one day. There have only been 23 trading days since 1950, where we saw a 5% up move.
  • The Federal Reserve is trying to hike interest rates to squash inflation. When you get a better than expected inflation number it means the market is pricing. The Fed is not going to have to hike interest rates as much, meaning that stock valuations are not going to hit as hard.

What to look out for this week? 

  • Historically, gridlock in Washington tends to be good for stocks.
  • We get producer price index (PPI) numbers on Tuesday. That gives us another inflation reading for October from the seller’s perspective rather than the consumption perspective.
  • We also get housing stats on Thursday and listing home sales on Friday. These give us another reading on the outpouring housing market, one of the areas we’re keeping a close eye on – considering it’s such a bellwether for the overall economy.

– 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. Zoe Financial does not provide legal advice.

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