The Call Of The Wild

Check out the accompanying pdf and chart collection. Executive Summary: A few choice negative words about consumer spending prospects from a few high-profile bank CEOs tripped up the S&P 500 last week. But on Monday, a strong NM-PMI release did the same, setting investors fretting about the very opposite: that consumer spending might be too strong. Meanwhile, the bankers are crying all the way to the bank: The S&P 500 Financials sectors’ forward revenue and forward earnings have never been higher. If investors need reassurance that the economy isn’t headed south, the Atlanta Fed’s GDPNow model certainly provides it. … Also: PPI inflation is falling relatively quickly. … And: Wage growth seems to have peaked.