Monday Morning Meeting Notes (01/16/2023)

Weekly Economic Insights

Monday Morning Meeting Notes (01/16/2023)

Bradley Prosper, CFA®, CFP® Weekly Economic Insights

Monday Morning Meeting Notes (01/16/2023)

General Info:

  • December’s consumer price index (CPI) data for the U.S. showed a slowdown in the pace of inflation
  • CPI declined -0.1% month-over-month, bringing the year-over-year figure from 7.1% to 6.5%
  • Core CPI, which excludes volatile food and energy costs, rose 0.3% month-over-month, which resulted in the year-over-year figure declining from 6.0% to 5.7%
  • Service sector CPI rose 0.6% month-over-month, which is in strong contrast to the headline -0.1% decline in inflation; this divergence leaves the door open for the Federal Reserve to debate the need for a 0.50% vs. a 0.25% rate hike at its January 31st-February 1st meeting
  • The fixed income market is currently pricing in a 0.25% hike
  • Fun Fact: Dr. Martin Luther King Jr.’s birth name was actually Michael, after his father Rev. Michael King Sr. In 1934, King Sr. attended an international Baptist conference in Germany where he became inspired by the teachings of 16th-century religious thinker Martin Luther. Following the conference, he changed both his name and his son’s. At the time, King Jr. was already 5 years old, so close friends and family continued to call him "Mike” throughout his life

Monday 01/16:

  • U.S. stock and bond markets are closed for the Dr. Martin Luther King Jr. holiday
  • The World Economic Forum’s annual meeting kicks off in Davos, Switzerland and runs through 01/20

Tuesday 01/17:

  • Goldman Sachs, Morgan Stanley, and United Airlines report earnings
  • China retail sales, industrial production, unemployment, and GDP data
  • U.K. unemployment data

Wednesday 01/18:

  • Charles Schwab, PNC Bank, Discover Financial, and Alcoa report earnings
  • U.S. retail sales data for December
  • U.S. producer price index (PPI) for December
  • CPI data for the Eurozone and the U.K. are projected to remain elevated at 9.2% and 10.5% year-over-year, respectively
  • Bank of Japan (BOJ) monetary policy meeting

Thursday 01/19:

  • Procter & Gamble, Netflix, Northern Trust, and PPG Industries report earnings
  • U.S. housing starts data for December
  • The European Central Bank (ECB) publishes the minutes from its December 2022 policy meeting

Friday 01/20:

  • Schlumberger, Huntington Bancshares, and Ally Financial report earnings
  • U.S. existing home sales data for December
  • U.K. retail sales data for December

About the Author

Bradley Prosper, CFA®, CFP®

Senior Research Analyst
Mr. Prosper is a member of the Firm’s investment research group where he assists in conducting investment research that is instrumental in the construction, maintenance, and management of client portfolios. This research includes the procurement of primary data via direct investment manager interviews as well as analyzing information from our data resources.