Money Talk Podcast, Friday Nov. 12, 2021
Landaas & Company newsletter November edition now available.
Advisors on This Week’s Show
(with Max Hoelzl, engineered by Jason Scuglik)
Week in Review (Nov. 8-12, 2021)
SIGNIFICANT ECONOMIC INDICATORS & REPORTS
No major releases
Inflation on the wholesale level remained at a record high in October. The Producer Price Index rose 8.6% from October 2020, the Bureau of Labor Statistics reported, tying September for the largest annual increase in 12 years of data. The monthly rise in the index was 0.6%, up from 0.5% in September, which was the smallest gain since last December. Increased prices for goods, led by energy products, accounted for more than 60% of the rise from September.
The broadest measure of inflation, the Consumer Price Index, rose at a 12-month rate of 6.2% in October, the highest since November 1990. The Bureau of Labor Statistics reported widespread price increases, including gains since October 2020 of 49.6% for gasoline and 26.4% for used cars. Excluding volatile food and energy prices, the core CPI rose 4.6% from October 2020, the biggest one-year advance since August 1991.
The four-week moving average for initial claims for unemployment insurance fell for the fifth week in a row, drawing 25% below the all-time average, dating back to 1967. Labor Department data showed new claims still 33% higher than the level of applications just before the pandemic. Total claims fell 4% from the week before to 2.6 million, as pandemic relief programs continue to wind down. Total claims the year before reached 21.7 million.
Government offices closed for Veterans Day
Job openings in the month of September remained very strong with 10.438 million openings. The August reading was also revised higher by roughly 200,000. The largest increase in job openings was present in healthcare and non-education state and local government jobs.Send us a question for our next podcast.
The preliminary reading of Consumer Sentiment disappointed for the month of November with concerns over inflationary pressures weighing on consumers’ minds. “Rising Prices for homes, vehicles and durables were reported more frequently than any other time in more than half a century” according to the Michigan report. The November data point represents a 6.8% decline month over month and 13.1% decline from November of last year.
MARKET CLOSINGS FOR THE WEEK
- Nasdaq – 15861, down 111 points or -0.7%
- Standard & Poor’s 500 – 4683, down 15 points or -0.3%
- Dow Jones Industrial – 36100, down 228 points or -0.6%
- 10-year U.S. Treasury Note – 1.58%, up 0.13 point