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Week of April 12, 2021 Thumbnail

Week of April 12, 2021

Greetings,

We hope this weekly update finds you well and safe.  A few takeaways from last week.

  • Is inflation back?  March Producer Prices were released last week with prices up 4% over the past year as the economy reopens and stimulus feeds through, pushing up costs.  Year over year comparisons will appear large for a host of economic indicators including inflation in the coming months.  This trend should flatten out as we get further away from the March - May increases compared against last year's cratering economy.  We expect the CPI numbers due next week to show that  this PPI number is also feeding into higher consumer prices.  This is expected and no surprise to the Federal Reserve but they will be watching closely as we mover further away from these low baseline comparisons.
  • Another Big Week for Stocks:  The S&P 500 Index is up nearly 10% year to date, with smaller capitalization indices up even higher as the market turns it's sights to earnings season which kicks off this week with JP Morgan announcing on Wednesday.  If Jamie Dimon's shareholder letter from last week is any indication, we expect JP Morgan to be giving positive guidance on the economy and earnings.
  • This Week:  This morning equity futures are slightly down following three straight weeks of gains as markets await a very busy earnings week with JP Morgan, Citigroup, Goldman Sachs, and Morgan Stanley all set to report earnings and give much awaited guidance on how the banks as engines of the economy are performing as we exit the recession.  All eyes will be on earnings this week.

Our full recap is linked below for your review.  As always do not hesitate to reach out to us on any questions you might have, or to schedule a meeting either virtually via Webex or in person in our Harrisburg office.

John J Klobusicky, CFA, CAIA, Managing Partner

717-232-8850

jklobusicky@fma-advisory.com

Market Insights - April 9, 2021

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