The headline PCE figure showed a modest month-over-month increase of 0.1%, while rising by 2.2% year-over-year. Core PCE, which excludes volatile food and energy costs, increased by 2.7% compared to the same period last year.and that was coming after an acceleration in inflation in the first quarter. So I think Fed officials are pretty feeling pretty good about where inflation is sitting,” Wilding tells Yahoo Finance.
Costco also announcing a membership price increase earlier this month for the first time in seven years, we will see the impact of that hike reflected in next quarter's earnings. We also know that fed Governor Michelle Bowman is particularly concerned about high core inflation and Atlanta fed President Raphael Bostic has also lingering concerns about inflation which has caused him to look at a slower rate cut path.All right, Jennifer, thanks so much as always appreciate it.
So if you look at the vacancies to employed ratio, you know, even obviously the unemployment rate, uh it is, it is looser. You know, obviously earlier this month, we had uh you know, a preliminary revision which suggested that there are 800 fewer jobs created in 2023 than we thought previously still according to the establishment survey, about 2 million jobs created over that year, you know, and, and separately, you know, we have broader revisions to the growth statistics which, which really suggests the US economy has been humming along.
So we think we are starting to see that that's one of the reasons why you've seen a step down in the labor market data and it suggests to us that we're going to continue to see some weak prints here until we get more clarity after the election.
Now, what I would say is that post pandemic, um just looking at the economic performance in the US versus other countries, you know, I think there, there's some pretty encouraging news there, the US has come out of the pandemic with investment trends that have been stronger than our developed market peers and productivity growth that's been much stronger uh you know, than other developed markets.
They're still doing lots of things very well, but they're not necessarily accelerating and when you have a valuation as high as 55 times on pe you kind of need to continue to accelerate that when you start to maybe stall even at wonderful levels.Is the valuation issue idiosyncratic to Costco or is it about consumer discretionary overall, which has been the biggest gain or sector wise for the month.Uh So Costco carries the highest multiple in, in any of my coverage.
They, they say their membership age continues to fall, right, the age of their members and that that's a wonderful long term sign for gaining share and, and to be clear, they're absolutely, I mean, their comparable store sales are nearly 7%.Talk to me about your bull case for Walmart.Uh Walmart is compete, competing on convenience for the first time in a long time.They had the same 5000 ish stores and they were as convenient as they ever were going to be.
Hey, Kiko, hey there, sh those gains we saw this week marked the biggest single week again in nearly 16 years.And then over in Hong Kong, we saw the Hang saying index up nearly 13% for the week for most certainly. It was Chinese leadership saying that China would deploy in their words, the necessary spending to reach its stated growth target of 5% calling for the forceful implementation of policy and then they also committed to taking action to make the property sector stop declining, which has been the biggest laggard on the economy.
Of course, the question guys moving forward is going to be what exactly this forceful spending is going to look like those, those specifics not necessarily provided by the Chinese leadership this week. So the fact that this medication does not come with the black label, uh black box warning label, which if you're not familiar with that label is one that indicates a serious safety risk or other side effects.Significant positive for Bristol Myers and the and the stock moving forward.
And because of this period of secular decline, analysts have said it's clear a murder should happen and it should be cleared by regulators. And that is, that is a 42nd 1 this year pointed out by Ryan Dietrich over at Carson group 42nd all time high for the S and P 500 Eastern religions such as Buddhism and Hinduism believe that people reached Nirvana at age 42.I am watching the dollar versus the yen and that has been sinking a little bit.This was, this is something that's caused consternation in the markets as we know, in months past yen maged in as I was calling, it had to do with lower, lower prints on this particular cross.
So here to make sense of all the bond market moves, we got Angelo Cork office, Ward Jones, Senior Investment strategist.I want to start with you Blake because we have these moves in the yield curve that are not really making sense to me.Well, I will say, uh basically since the meeting, it's been kind of chop city, I mean, we've been back and forth.Uh So it does seem like the markets are really trying to get a handle on what's going forward.
But I think Powell actually at the press conference did a very good job and kind of nipping that story in the bud because as I said, he was pretty positive on the economic outlook.He said recalibration like five or six times during the press conference, he said this is a recalibration.This isn't because we are, you know, very concerned about near term downside risks or anything.
Either we talk about some of the cyclical sectors, midcap stocks, which we like, they offer a nice balance between quality, lower valuations and the potential to catch up. And I think part of that is because one, as you said, we think the economy is probably um you know, on a lot better footing here, consumer balance sheets, corporate balance sheets are doing very well.
So I think there's gonna be a little pent up activity into the end of the year, beginning of next year.So it's good right now, but we've seen uh before we've gotten a head fake, it was very good last fall as well.And so um I think that's kind of where we're coming out with that higher terminal call is that we get into Q one of next year.
So I don't think despite some of the near term headwinds, the elections being one of them, I don't think that changes the, the uptrend in equities, but it's not gonna be a straight line higher than the right.And I do agree that it's not gonna be a smooth path towards that, you know, 3% slightly under 3% that fed officials outlined.And we think for, for equities is, is higher in this backdrop.
I think the communications around the meeting in sense have been uh very confusing for markets, um whether they're more focused on labor uh deterioration. Also some of that optimism playing out not only in NVIDIA but broadly the A I chip maker space that was fueled by Mike on strong earnings report.We're seeing a slight move lower, but we have seen this return of optimism to say the least surrounding NVIDIA.Well, it, it, I think it really depends on the overall macro.
And that's really what I think is gonna go certainly for the next quarter because you're gonna have no more data points out of NVIDIA until another, at least another three months or so. You look at it now, you're, you're in a situation where very, very big growth is expected in the stock, the year over year, comparisons start to become more challenging.Um And I think really that's all that's going on here.
Um How this company can value itself at 100 and $50 sorry, 100 and $50 billion frankly is, is beyond me.If you look at what LA uh Meadow was talking about this week, they, they've provided their best model to the open source for free. Another potential explanation for this is the focus on T bill and chill the phrase that was coined over the past couple of years amid the feds faster than four decades of, of rate hiking, right.
First up, Dollar General getting that downgrade from city to sell from neutral, cutting their price target to $73 from $91. They're talking about the fact that despite despite some of that optimism that we did see play out in the markets this week, the new stimulus measures in China. So tough to see the continued challenges for this dating app company will keep right here and Yahoo Finance, you got another hour for you coming up next up, we get the final reading on September consumer sentiment, our lower rates enough to boost Americans fear around the labor market.
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