US Economy

One-Week Winning Streak

Sep 9, 2022 1 min read paid

The DJIA, Nasdaq, and S&P 500 snapped a three-week losing streak today. Why? After all, on Thursday, Fed Chair Powell in an interview at Cato Institute reiterate that the Fed won't back down on planned rate increases. "We need to act now, forthrightly, strongly as we have been doing, and we need to keep at it until the job is done," he said.

Ed Yardeni

Divine Disinflation In NM-PMI Survey

Sep 6, 2022 1 min read

Investors are rooting for "divine disinflation." We all want inflation to come down without a painful recession. We want the Fed to tighten one more time by 75bps and then to pause for a while. This morning's release of August's survey of non-manufacturing purchasing managers was consistent with this wishful thinking. That might explain why the S&P 500 rallied after the

Ed Yardeni

Peak Freight Rates As US Keeps On Trucking?

Sep 5, 2022 1 min read paid

US freight rates increased 28% y/y during July, but declined almost 2% m/m. That's according to the July Cass Freight report We expect that August's report, out in mid-September, will confirm that freight rates have peaked just as peak shipping season encompassing both back-to-school and the holidays begins.

Ed Yardeni

Lots Of Jobs, But...

Sep 2, 2022 1 min read

This morning's jobs report for August was a good one even though the unemployment rate rose to 3.7% from 3.5%. It did so because 786,000 workers entered the labor force, while the household measure of employment rose 442,000. The new entrants shouldn't have any problem finding jobs, while an increase in job seekers may take the pressure off employers to raise wages

Ed Yardeni

August's M-PMI: More Stag & Less Flation

Sep 1, 2022 1 min read paid

August's M-PMI provides confirmation of our economic outlook including a growth recession and moderating inflationary pressures. On balance, it should have been bullish for both bonds and stocks this morning, but the prices of both are down. That's because, today is the first day that the Fed is ramping up QT2, i.e., letting its balance sheet shrink by $95 billion per month. The composite

Ed Yardeni

The Economic Week Ahead (Aug. 29-Sept. 2)

Aug 28, 2022 1 min read paid

Time marches on! September is almost here. The week ahead is packed with employment data starting with July's JOLTS (Tues.), jobless claims (Thurs.), and August's employment report (Fri.). August's consumer confidence survey (Tues.) will also provide insights into the availability of jobs.

Ed Yardeni

The Chairman's Speech: What Will Jerome Powell Say?

Aug 24, 2022 2 min read

Have you heard? Fed Chair Jerome Powell will speak on Friday morning at the Federal Reserve Bank of Kansas City’s annual Economic Policy Symposium, which is held at a nice resort at Jackson Hole, Wyoming. Odds are he won't change his tune much from what he said in his prepared remarks at his July 27 presser, which was less than a month ago. Since then: July'

Ed Yardeni

Flash US Business Indicators Flashing Orange

Aug 23, 2022 1 min read paid

S&P Global released its August flash indexes based on its surveys of US manufacturing and non-manufacturing purchasing managers. They are flashing an ongoing slowdown, especially for the NM-PMI. Our quick take is that the data are confirming our "growth recession" assessment of the US economy in 2022.

Ed Yardeni

The Economic Week Ahead (August 22-26)

Aug 21, 2022 1 min read

The big event of the coming week will occur on Friday at 10:00 am EDT, when Fed Chair Jerome Powell will address the annual global central banking conference in Jackson Hole, Wyoming. Nothing much has changed since his press conference on July 27 other than that the S&P 500 is 7.8% higher. So he is likely to signal another rate hike in late September aimed at

Ed Yardeni

NY & Philly Surveys: Weakening Business & Prices

Aug 18, 2022 1 min read

We now have two of the five regional business surveys conducted during August by the Federal Reserve district banks of NY and Philly: (1) NY was very weak, while Philly offset some of that weakness. The average of the two composites of business activity fell in August to -12.6, the lowest reading since the 2020 rebound from the lockdown recession. Collectively they suggest that August's M-PMI

Ed Yardeni

Mixed Messages From Manufacturing & Housing

Aug 16, 2022 1 min read paid

July was a good month for manufacturing and a bad one for the housing industry. Industrial production, which is one of the four components of the Index of Coincident Indicators, rose 0.6% m/m to a new record high during July (chart). Housing starts tumbled during the month. Building permits, which is one of the 10 components of the Index of Leading Indicators, also fell during July. There'

Ed Yardeni

Fed's NY Business Survey Takes A Dive In August

Aug 15, 2022 1 min read

The charts below show that business activity plunged during August, according to the monthly survey of the Fed's NY district. It's a shocker. Here are the details: "Business activity declined sharply in New York State, according to firms responding to the August 2022 Empire State Manufacturing Survey. The headline general business conditions index plummeted forty-two points to -31.3. New orders and shipments plunged,

Ed Yardeni

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