By: Dividend Sensei
What I’m Watching This Week
It’s a slow week in terms of significant economic news. On Tuesday the JOLTs jobs report showed a record high 6.16 million job openings, which is great, but indicates a large gap between openings, and skilled workers in area. Hopefully at some point this large gap will be closed with higher wages, though that could still take some time given the historially low labor participation rate, which means there are plenty of potential workers on the sideline that can keep wages from rising faster than they otherwise would.
Wednesday we have productivity numbers, with estimates of 0.6%, compared to 0% for last month. If we could get a slight beat that would certainly help with future wage increases, since rising productivity is the mother of low inflation wage growth.
Tuesday and Friday we have inflation data, in the form of Producer Price Index (PPI) and Consumer Price Index (CPI). Core CPI is what the Fed uses when making its rate increase decisions.
Meanwhile earnings season is winding down, but there are still some important companies left to report, including:
Monday: CVS (beats on both top and bottom line), DIS (revenue miss, EPS beat)