Inflation Fears

Market Snapshot Futures gave off the wrong message yesterday, pointing higher before the opening bell. Investors appeared to be afraid ahead of key inflation data that will be released this morning. Oil fell, but only slightly. At the bell, the Dow was down 1.94%, the S&P lost 2.38%, and the Nasdaq was down 2.75%. Sometimes some stellar advice from someone who has walked in your shoes can make all the difference. Try our [WSO mentors service](; we will match you with a seasoned pro, typically in 48 hrs, who will dedicate time towards tailored, focused 1v1 mentoring to set you up for success. Let’s get into it. Banana Bits - My precious Celtics [won]( game 3 and are gearing up for game 4 tonight at home - Joey B wants to make [charging your EV]() a little easier, which is good news because allegedly, you can’t drive from Dallas to Denver in one - Every morning when I wake up, gas is even [more expensive]( - and there’s no end in sight - Sometimes the [best advice]( can make all the difference; have you thought about finding a mentor? - Things are getting political: Joey B and team fear that the word [inflation](=) will be weaponized against them Banana Brain Teaser Yesterday — Arnold Schwarzenegger has a long one. Michael J. Fox has a short one. Prince does not use his. Bill Clinton always uses his. The Pope never uses his. What is it? Surname or family name. Today — We’ll knock 30 bananas off of a 1-hour [WSO Mentorship Program]( session for the first 15 correct respondents: What flies without wings? Shoot us your guesses at [vyomesh@wallstreetoasis.com](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) with the subject line “Banana Brain Teaser” or simply [click here to reply!](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) Macro Monkey Says CPI Print on Deck — In case you were waiting for a warm blanket of positive financial news to end your week, this ain’t it. This morning we await last month’s consumer price index data. I’m tired of banging the inflation drum, but in terms of ripple effects, arguably, no indicators that we care about have as far of a reach as this key metric. It would appear that peak inflation is behind us and that analysts expect inflation to move lower slowly. But the year-over-year CPI median forecast is still 8.2%. That is through the roof for a developed nation with established political norms and an independent central bank. There’s something mentally depressing about inflation being in the 8% range, especially after a couple of rate hikes. But other big-name investors like Ray Dalio are predicting that the Fed might be too effective at curbing demand and taming inflation. One opinion floating around is that these aggressive rate hikes coupled with the mentality ramifications of monetary tightening will stifle the economy, and then the Fed will be forced to lower rates again to stop the economy from crumbling. While that’s not my base case, after reading what I think about the challenges of engineering a soft landing, you’d probably at least expect me not to take this point of view off the table. If we see a miss on this CPI print, there’s a chance we see some significant volatility today, above and beyond what we have lived through in the last few months. If that’s the case, what do you do? Well, volatility is great for trading. Not financial advice, but it might be time to place your bets on your short-term convictions. The economy isn’t completely destroyed, but things are absolutely slowing down. We’re on the edge of our seats, waiting to hear more from the data. WSO Mentorship Program [image]( Sometimes the difference between success and failure lies in experience. Working with WSO mentors is an opportunity to learn from the experiences of professionals who have been in your shoes. Try our [WSO mentors service](); we quickly match you to an industry pro, usually in 48-72 hrs, based on your preferences and inputs from a detailed questionnaire. Our mentors have proven track records from across the finance industry. Let our experts help you help yourself. What's Ripe NXP Semis ($NXPI) — Shares of $NXPI rose yesterday on rumors of a Samsung takeover. Samsung is looking to parlay into the automotive chipmaking space, so a deal would make perfect sense here. While there wasn’t a lot of good news yesterday to write home about, shares of $NXPI closed up 4.04% on the news. Home Depot ($HD) — On days like yesterday, it’s usually easier to find stonks that got schwacked. Interestingly, $HD was the only Dow component that was in the green during the last trading session. Shares of the big box home improvement store climbed only slightly, finishing up 0.78%. Apparently, compared to its competitors, a P/E of 19 is pretty competitive, so investors still like shares of Home Depot even in a down market. What's Rotten The Boeing Co ($BA) — These cats at Boeing can’t catch a break. Amongst Dow components yesterday, their stock was the biggest loser, and not in a funny reality TV kind of way. The next 737 Max variant is still delayed, and Boeing is still under fire from the last variant. Boeing is also about to shell out tens of millions of dollars in cash to move its headquarters to Arlington, VA, from the PNW. When you’re trying to move near the Pentagon, no colonel is left behind, as they say. Boeing was down 4.23% yesterday. Moderna ($MRNA) — Even after recent news of an updated Omicron-friendly (or not friendly?) booster, Moderna has seen price target cuts at firms up and down the Street. Yesterday, they got absolutely crushed. This was not your $MRNA of summer 2021. It was more like your $UBER of spring 2020. Shares of $MRNA were down 9.76% yesterday. Thought Banana Pay Transparency— Many of us like to say that we do what we do for the sake of a purpose. Whether it’s out of some greater sense of service or driven by excellence, you often hear that a motivated employee is an effective and productive one. But at the end of the day, I don’t think many of us would work for free, however noble the cause. While some people argue that money isn’t everything or that it doesn’t buy happiness, it definitely does buy housing and the basic necessities that we need to literally survive. In Western work culture, talking about pay and salary numbers has been frowned upon. It isn’t really acceptable to put your number on your nametag at work. But should it be? Is pay transparency a core value that employers should seek to realize in their workplaces? I think that pay transparency only works when everyone is transparent. For example, when Colorado and NYC legislate that job postings in their jurisdiction are required to have a salary range in them, I don’t think that helps a candidate looking for the same type of job or even the exact same job title in Arkansas or Iowa. Some argue that pay transparency is only about closing pay gaps or reducing biases. Just like workplace intellectual diversity, transparency in pay can be effective not only in achieving some political goals but also in attracting the best talent. Right now, the labor market is super tight. Attracting talent is tough, even as the economy slows. Workers still have a ton of leverage in finding the salary and flexibility that meet their needs. Pay transparency attracts serious candidates to jobs. It also does some level-setting before the application is submitted. Hopefully, as we crack the pay transparency nut, we can start to penalize employers who require me to upload a cover letter… and then re-hash every detail from it on the next screen! Happy Friday, apes. Wise Investor Says “I’m not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making – just the facts.” — Bill Ackman Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? Sign up for the WSO Daily Peel [here](. [ADVERTISE]( // [WSO ALPHA]( // [COURSES](=) // [LEGAL](=) Don't want The Daily Peel? [Unsubscribe here](=). Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. 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