Last Week: .46%
YTD: 14.10%
1 Year: 19.78%
Dow Jones Industrial Average
Last Week: .77%
YTD: 3.15%
1 Year: 14.27%
Last Week: -.22%
YTD: 29.52%
1 Year: 27.46%
Month: -1.58%
YTD: -1.25%
1 Year: .91%
YTD: 27.25%
1 Year: 28.60%
*As of 9/30/2023
YTD: 3.53%
1 Year: 19.68%
*As of 9/30/2023
Consumer Price Index
CPI increased .4% on the month and 3.7% from a year ago. This is slightly above forecasts of .3% and 3.6% respectively. Core CPI (excludes food and energy prices) increased .3% and 4.1% on a 12-month basis, in line with expectations. Shelter (housing) costs were the main factor of the increase in inflation, accounting for more than half of the rise in CPI. Core CPI tends to be the more widely used inflation number for economists, as they believe it is a more accurate predictor of long-term trends. Will we see another rate hike in 2023, as the Fed continues to navigate inflation?
Autoworker Strike Continues
The United Auto Workers (UAW) strike amongst the major US auto manufacturers continues to heat up. General Motors (GM) and Ford (F) have laid out ambitious spending plans developing new electric vehicles and battery plants. Funding for these plans comes mostly from the large profits on gasoline truck and SUV sales. The costs from the UAW strikes have started to put those plans at risk. Ford has already announced a pause in the building of their new battery plant until things settle. GM will report Q3 results Oct 24th and Ford on Oct 26th. GM has forecasted a $200 million reduction in profits during the quarter from the labor strikes.
Consumer Sentiment
Consumer Sentiment as reported by the University of Michigan declined for the third straight month. Households are expecting higher inflation over the next year, but a strong labor market will likely support consumer spending. Conflict in the Middle East also hurt consumer confidence as a global recession could be a possibility. Other notable concerns from consumers were dysfunction in Washington DC and the UAW strike.
