Another Sign Of Runaway Inflation

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Posted: Jun 01, 2021 1:34 PM
Another Sign Of Runaway Inflation

Source: AP Photo/Richard Drew

The market bolted out the gate but almost immediately stalled and pulled back ahead of a bunch of economic data releases.  The Dallas Fed Manufacturing Report was one of them.  General business climbed, and was slightly better than expected, but prices paid for raw materials was the lead.  Yet another sign of runaway inflation, as it was an all-time record high.

I was encouraged by cap ex and continue to see a boom in business investments.

Indicator

May Index

Apr Index

Trend

% Reporting Increase

% Reporting Decrease

Production

15.7

34.0

12(+)

40.0

24.3

Capacity Utilization

23.2

34.6

12(+)

43.4

20.2

New Orders

20.8

38.5

12(+)

44.5

23.7

Rate of Orders

19.5

32.3

11(+)

40.6

21.1

Unfilled Orders

19.8

23.1

11(+)

31.7

11.9

Prices Paid

79.9

71.4

13(+)

81.8

1.9

Prices Received

38.4

39.1

10(+)

43.0

4.6

Wages and Benefits

39.0

37.1

13(+)

40.0

1.0

Employment

22.7

31.3

11(+)

29.0

6.3

Hours Worked

22.7

23.7

11(+)

32.9

10.2

Capital Expenditures

23.2

19.8

10(+)

29.7

6.5

Broad Market

The S&P 500 spinning its wheels but seems to want to move higher. Utilities and Consumer Staples are lagging along with health care – signs investors want to be aggressive. 

Energy acts the best with crude on the rise, but Materials are also impressive.

S&P 500 Index

+0.04%

 

Communication Services XLC

+0.02%

 

Consumer Discretionary XLY

+0.04%

 

Consumer Staples XLP

 

-0.34%

Energy XLE

+3.29%

 

Financials XLF

+0.78%

 

Health Care XLV

 

-1.55%

Industrials XLI

+0.66%

 

Materials XLB

+1.35%

 

Real Estate XLRE

+1.02%

 

Technology XLK

 

-0.31%

Utilities XLU

 

-0.46%