Money Talk Podcast, Friday July 14, 2023

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Landaas & Company newsletter July edition now available.

Advisors on This Week’s Show

Week in Review (July 10-14, 2023)

Significant economic indicators & reports

Monday

U.S. consumer spending showed resilience in May with credit card debt increasing for the 25^th month in a row. The Federal Reserve Board reported revolving consumer credit debt outstanding grew by an annual rate of 8% in May. Non-revolving debt, including student loans and vehicle financing, declined at an annual rate of 0.4%. Compared to May 2022, credit card debt rose by 15% to more than $1.25 trillion, which was more than 12% above its level just before the COVID pandemic.

Tuesday

No major releases

Wednesday

The broadest measure of inflation rose at a 3% annual rate in June, less than one-third of where it peaked a year ago. The Bureau of Labor Statistics reported that the Consumer Price Index continued slowing after hitting a 41-year high of 9.1% in June 2022. At 3%, the CPI was at its lowest point since March 2021. The year-to-year increase is still higher than the 2% long-term target of the Federal Reserve. Seasonally adjusted, the index rose 0.2% from May, with increased shelter costs contributing more than 70% of the gain. Excluding volatile energy and food costs, the core index rose 4.8% from June 2022, the lowest since October 2021.

Thursday

Wholesale inflation also continued to moderate in June. The Producer Price Index rose 0.1% from the year before, having decelerated each month since hitting 11.2% in June 2022, the Bureau of Labor Statistics reported. On a monthly basis, the index budged 0.1% from May only through greater demand for services. Demand for goods was unchanged. Excluding volatile costs for food, energy and trade services, inflation on the wholesale level rose 0.1% from May and 2.6% from June 2022.

The four-week moving average for initial unemployment claims fell for the second week in a row to its lowest level in six weeks. The average hit 246,750 in the latest week, down 33% from the 56-year average. Total claims rose 3.8% in the latest week to nearly 1.8 million, which was up from 1.3 million the same time last year.

Friday

A stable labor market and slowing inflation have boosted consumer sentiment to its highest level since September 2021, according to a preliminary report by the University of Michigan. Seen as a precursor to consumer spending, sentiment has recovered from record lows a year ago and is midway back to where it left off when the COVID-19 pandemic hit. University researchers said that except for low-income workers, consumers surveyed showed broad improvements in how they view the economy and their personal finances.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14114, up 453 points or 3.3%
Standard & Poor’s 500 – 4506, up 107 points or 2.4%
Dow Jones Industrial – 34511, up 776 points or 2.3%
10-year U.S. Treasury Note – 3.82%, down 0.23 point

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